New Jersey Key Person Insurance
Connect with a local independent agent.
Written by
Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
New Jersey has roughly 1,800,000 people that work for small businesses. If your company has individual employees or officers that are vital to your operation, you can protect that. Key person insurance is a great resource that will help pay for a loss involving an essential worker.
An independent insurance agent can help you find coverage for a fair price. They have multiple carrier options at affordable rates. Connect with a local expert to get started.
What Is Key Person Insurance?
Your New Jersey company can purchase key person insurance on a vital member of your team. It is a life insurance policy that can be bought for a key executive's life. Your business would pay for the policy's premiums and be listed as the beneficiary. This policy is also known as key man insurance or a business life insurance policy.
What Does Key Person Insurance Cover?
Your key person insurance has some creative coverage options. Not all business policies are equal and should be reviewed with a professional. Each carrier has its own flavor of offerings, so be sure it fits your needs. Check out what a key person insurance policy can cover:
- Insurance to replace profits associated with a key person
- Offsetting lost income from sales due to a key person
- Protection for shareholders and other interests
- Cover losses resulting from a business project involving a key person
What Is the Purpose of Key Person Insurance?
Your small business in New Jersey may not function if a key person becomes deceased. While it's not a pleasant subject to think about, it's necessary to plan for the worst case. If your business wants to survive a significant setback, you'll need to be proactive.
Key person insurance can help your company pay for items until you can find a replacement. It will pay debts, pay severance to employees, and close the business down if necessary. This will give your company alternative options to bankruptcy when a tragedy occurs.
What Doesn't Key Person Insurance Cover?
Key person insurance is a life insurance policy for your business. It works the same way in most scenarios. Some carriers may only offer very simple coverage options, and in this case, there wouldn't be many additional protection limits. Your New Jersey key person policy may exclude the following:
- Disability insurance for a key person
- Bodily injury for a key person
- Lost wages for a key person
- Long-term care for a key person
Not all key person policies are created the same. Some have many different coverage options and even include a disability or long-term care arm. A basic key person policy will not, and you should be aware of that.
Key Person Insurance Cost
The cost of key person insurance will vary, like all your business policies. Personal data will affect a life insurance policy more than anything. Take a look at some factors carriers use to rate your policy:
- The key person's health history
- The key person's current health status
- The limits of protection you choose
- If the key person has any current life policies
- How long the key person has worked for your company
- What the key person's role is at your company
There is no way to know what your exact costs will be without a quote. You can be aware of the items insurance companies use to rate your policy. This will give you a better idea of what you can improve before obtaining coverage.
How to Connect with a New Jersey Independent Agent
If you're searching for business insurance in New Jersey, you'll have several options. Key person insurance can be essential coverage for your operation. If you're unsure how to obtain proper protection, consider using a licensed professional.
An independent insurance agent can help with coverage and premiums. They work with several markets at once, saving you time and money. Get with a local expert on TrustedChoice for customized quotes.