New Mexico Key Person Insurance
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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 Mexico has approximately 334,945 employees working for small businesses. If you have a team that you count on to run your operation, specific policies are needed. Key person insurance is one of them and can cover your exposure.
An independent insurance agent has access to multiple markets, saving you time and premium dollars. They review your coverages for free so that you can relax. Connect with a local expert to get started today.
What Is Key Person Insurance?
If your business has a team that helps you run your day-to-day operation, key person insurance is necessary. Check out what New Mexico coverage has to offer.
- Key person insurance: This is a life insurance policy that can be bought for a key executive or employee'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 in New Mexico?
There are basic coverages that each New Mexico key person insurance policy will offer. Not all policies are created the same and should be reviewed carefully for accuracy. Take a look at 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
- Covering losses resulting from a business project involving a key person
What Is the Purpose of Key Person Insurance?
Key person insurance is not something many people want to think about, but it could save your business. Ask yourself what you would do if a key employee died?
This policy will allow your company to pay for things until you find an appropriate replacement. It can also help with avoiding bankruptcy. Check out some things your New Mexico key person policy can cover.
- It will pay debts
- Pay severance to employees
- Close the business down if necessary
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What Does Key Person Insurance Not Cover in New Mexico?
Every carrier and business is different in what they will and won't cover. Since insurance companies operate off of their own policy forms, they may have variations in coverage from carrier to carrier. Just like any policy you own, exclusions will apply. Your New Mexico 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 of a key person
New Mexico Key Person Insurance Cost
Your New Mexico commercial insurance costs will vary depending on several items. Carriers look at your specific risk and, in this case, the health and well-being of your key employee. Take a look at some factors that companies 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
How to Connect with a New Mexico Independent Agent
New Mexico business insurance is crucial to running a company smoothly. When you have to protect your assets, there are several options. Key person insurance is one policy that matters a lot when you have a team.
Fortunately, an independent insurance agent can help you decipher which coverages are necessary for your business. They have policy and premium options that fit your budget. Connect with a local expert on TrustedChoice.com for custom protection today.