What Is New Jersey Key Person Insurance?

It's a great thing to have a team that you rely on when you own a company. Sometimes, there are even employees you couldn't live without, and insuring them if something happens could be beneficial. A New Jersey business policy can include key person insurance.

Fortunately, a New Jersey independent insurance agent can help with policy and premium options. They work with a slew of carriers so that you get the best deals in town. Connect with a local expert for custom quotes to get started.

What Is Key Person Insurance?

If you own a New Jersey business that uses a team to keep your operation going, key person insurance may be necessary. Check out what New Jersey coverage has to offer:

• Key person insurance: This 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 get the benefits if it was ever used. This policy is also known as key man insurance or a business life insurance policy.

What Does Key Person Insurance Cover in New Jersey?

In New Jersey, key person insurance protects your business's interests when a critical executive or employee dies. 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
• Cover losses resulting from a business project involving a key person

What Is the Purpose of Key Person Insurance in New Jersey?

Like your other commercial insurance policies, key person insurance will reduce your exposure as a business owner. Check out some things your New Jersey key person policy can cover:

• It will pay debts
• Pay severance to employees
• Close the business down if necessary

What Doesn't Key Person Insurance Cover in New Jersey?

All business insurance policies come with a list of exclusions. Key person insurance covers a very specific loss, and with that come many items it won't insure. New Jersey key person insurance may not include 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

Largest life insurance companies in the US in 2019, by assets (in billion US dollars)

Your life insurance carriers matter and should be carefully considered. Review your options with a licensed professional. 

Key Person Insurance Costs in New Jersey

In New Jersey, there are 884,049 small businesses in existence. All of them will have unique premiums based on their characteristics. Take a look at some risk factors carriers use to rate your key person 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

Is New Jersey Key Person Insurance Life Insurance?

Yes, New Jersey key person insurance is a life insurance policy for your business. Its sole purpose is to protect your company when a key executive, vice president, or employee passes and cannot perform crucial tasks. 

Number of life insurance policy purchases in the US from 1998 to 2018 (in millions)

Life insurance can come in several different forms and for numerous purposes. The right coverage for you and your operation can be discussed with a knowledgeable adviser.

How to Connect with a New Jersey Independent Agent

It can be uncomfortable to imagine the unthinkable, but key person insurance should be considered when you have a company. If you know your business wouldn't run without a certain employee or executive, then this policy is for you. Fortunately, a trusted professional can help review your coverage for free.

A New Jersey independent insurance agent even does the shopping for you at no additional cost. They'll scout out the best options for your operation so that you can focus on running your business. Connect with a local expert on TrustedChoice.com for tailored quotes in minutes.