When you are looking for a business loan or an investor, you expect them to ask about your profits. You might be surprised when they ask about your life insurance. Banks and investors are looking to protect their money in every eventuality—including your death.

If you are the key to the business’s success and you pass away, the business could fail, and the bank would lose its loan. That is why they often require a life insurance policy on the business owner as a condition of the loan. They need to know that if the worst happens, the debt is covered.

Investors are the same. They are buying into a “going concern.”

If you don’t have the proper insurance—property, liability, and life—they view that as an irresponsible risk. Having these policies in place doesn’t just protect your family; it signals to the financial world that your business is a stable, investable asset.