Yes — protecting against business debts is one of the common use cases for key person insurance, sometimes called debt protection or loan protection cover. The structure: the business takes out life and TPD cover (and optionally trauma) on each director, partner, or guarantor, with the sum insured aligned to the value of business loans those individuals have signed for or guaranteed. If the key person dies or becomes totally and permanently disabled, the insurance proceeds are used to repay or reduce the debt, removing the obligation from surviving partners or the deceased's estate. This is particularly relevant where loans are secured against personal assets such as the family home — without debt protection, a death or disability event can force a sale to satisfy the lender. For tax purposes, debt-protection cover is generally classified as capital purpose (premiums non-deductible, proceeds typically not assessable income), since the proceeds buy a reduction of capital liability rather than replacing operational income. Many lenders specifically request key person debt protection as a condition of approving the loan, particularly for SME borrowers. The cover should match the outstanding loan balance and may need to be reviewed and adjusted as the loan amortises (if the loan is being paid down over time, cover may be reduced; if the loan increases, cover should be increased to match). This is a qualitative consideration — discuss with a licensed adviser before committing to the structure, as the right answer depends on loan terms, business structure, and ownership arrangements.