How Much Life Insurance Should A Startup Founder Have? 
The start-up founder of a company lives in two worlds . One is the personal world of his family . His obligations there are great but different from those of a business head . Most companies need capital to start and expand their business . They will approach a bank or private lender and often will be asked a question about their life insurance . If a start-up business loses the founder in the early days it is difficult , if not impossible for the business to survive . Any lender will want enough life insurance to make sure that loans and obligations are paid . If the loan being made considers the founder a vital asset of the company , they will require life insurance with and that they are named as additional insureds to the amount of the loan being made . If the founder also is the secret ingredient in the business any lender will require life insurance to make sure that there is sufficient capital to replace that individual . Companies often fail when key people die . One of my clients was murdered and in a few months the business collapsed . 