CEOs, CFOs, and other executives juggle family responsibilities, corporate leadership, and wealth management. Life insurance for high-net-worth executives is more than income replacement — it’s a strategic tool to safeguard family wealth, manage estate taxes, and protect company stability.
Why executives need life insurance
Life insurance is risk management for both your family and company:
Income protection: Replace base salary, bonus, equity, and deferred comp.
Estate planning: Provide liquidity to avoid forced asset sales.
Business continuity: Pre-fund succession and buy-sell agreements.
Debt coverage: Address personal guarantees, loans, and pledged collateral.
Policy options for CEOs and executives
Executives often blend term and whole life policies for both personal and employer-related coverage:
High-limit term life insurance: Efficient for peak responsibility years.
Whole life insurance: Lifetime coverage, cash value, and estate flexibility.
COLI: Employer-owned policies funding obligations.
Executive bonus (162): Employer-paid premiums treated as compensation.
Supplemental group coverage: Good layer, but not portable.
Pros & cons of term life insurance for executives
Learn more >> Best term life insurance companies
Pros & cons of whole life insurance for executives
Learn more >> Best whole life insurance companies
Coverage amounts and rate considerations
Executives often need multimillion-dollar coverage:
Face amount sizing: $5M to $10M+ depending on equity and estate size.
Compensation mix: RSUs, options, and deferred comp raise coverage needs.
Age & health: Regular health screenings improve underwriting outcomes.
Financial underwriting: Carriers review income, net worth, ratios.
Reinsurance: Very high face amounts may involve reinsurers.
How much does life insurance cost for CEOs & CFOs?
We found that the cost of life insurance for executives can be between $1,598 and $1,837 a year depending on your coverage limits, age, health, gender, and other risk factors.
A 30-year-old female CEO with few health conditions and risk factors can expect to pay as little as $64 per month for a $2 million life insurance policy with a 20-year term. A 30-year-old male CEO can expect to pay as little as $85 a month for the same coverage.
Term life insurance rates for CEOs & CFOs
Age | Gender | $2 million coverage amount |
20 | Female | $58.02 |
Male | $83.01 | |
30 | Female | $64.39 |
Male | $84.70 | |
40 | Female | $109.83 |
Male | $135.83 | |
50 | Female | $253.73 |
Male | $342.74 |
Methodology: Average monthly rates are calculated for male and female non-smokers in a Preferred health classification buying a 20-year $2 million term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from Legal & General America, Brighthouse Financial, Corebridge Financial, Foresters Financial, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica, and may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 07/01/2023
Whole life insurance rates for CEOs & CFOs
Age | Gender | $2 million coverage amount |
20 | Female | $1,085 |
Male | $1,273 | |
30 | Female | $1,598 |
Male | $1,837 | |
40 | Female | $2,319 |
Male | $2,740 | |
50 | Female | $3,648 |
Male | $4,229 |
Methodology: Average monthly rates are calculated for male and female non-smokers in a Preferred Plus health classification buying a $2 million whole life insurance policy from MassMutual. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 07/01/2023
Final expense insurance rates for CEOs & CFOs
Age | Gender | $25,000 coverage amount |
|---|---|---|
50 | Female | $74.47 |
Male | $98.96 | |
60 | Female | $105.21 |
Male | $140.69 | |
70 | Female | $158.19 |
Male | $215.16 |
Methodology: Average monthly estimated rates are calculated for male and female insureds obtaining a final expense life insurance policy of $25,000 from Mutual of Omaha. Life insurance rates are based on policies offered by Policygenius and may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 01/01/2024.
Estate & tax strategies with life insurance
Estate tax liquidity: Cover estate taxes with tax-free death benefit.
Charitable planning: Replace or amplify donations.
Equalization: Balance inheritances across heirs.
Creditor considerations: Trust or entity ownership can shield benefits.
Smart structures: ILITs, buy-sell funding, and COLI basics
ILIT: Keeps proceeds outside taxable estate.
Buy-sell: Fund ownership succession in private firms.
COLI compliance: Requires written notice, consent, and IRS Form 8925 reporting.
Executive bonus (162): Can include double-bonus and restricted endorsements.
How to apply efficiently as a busy executive
Follow these steps to purchase a life insurance policy:
Start online with Policygenius: Finish quickly with accelerated underwriting when available.
Prepare financial docs: This will include W-2s, K-1s, and net worth statements.
Coordinate with counsel or HR: This is for COLI and buy-sell approvals.
Review beneficiaries: Ensure alignment with your estate plan.
Bottom line & next steps
The right mix of term and permanent coverage protects both your family and company. Align policies with income, equity, and estate objectives, use trusts or corporate structures, and review after promotions or liquidity events.
Learn more >> How long should my life insurance coverage last?
