Why CEOs & CFOs need life insurance
If you’re a CEO, a CFO, or hold another executive position, you can implement life insurance if you have people who depend on your income, just like anyone else would. High earners can also use a life insurance policy as a tool to protect wealth.
CEOs may have to take a number of factors into consideration when shopping for life insurance:
Income protection. If you have dependents like a spouse or children, you’d want their expenses covered in your absence. A life insurance policy can ensure that they’d have extra funds on hand if they were without your income, without having to sacrifice other assets.
Debt protection. The same goes for expenses like mortgages — life insurance can provide a financial safety net for your loved ones so that they won’t have to sacrifice their quality of life.
Financial planning. If you have a high net worth, you may use life insurance as an estate planning tool in order to protect your wealth and buffer against estate tax.
Key-person insurance. If you’re a CEO or an executive at a company, your employer may prompt you to take out key-person life insurance — which is a type of business life insurance policy — in addition to a personal policy. These types of policies insure top executives or highly skilled employees. The business owns the policy and serves as the beneficiary, to buffer against potential financial loss in the event of your death.
→Learn more about corporate-owned insurance
Best life insurance companies for CEOs & CFOs
The best life insurance company for you will be dependent first and foremost on your financial needs and motivation for getting coverage. Below are a few of our top partners for different types of life insurance policies.
We used industry data, pricing from Policygenius carrier partners, and third-party ratings like AM Best and J.D. Power to pick the best insurers on the market. Our independent recommendations will help you get life insurance coverage with confidence.
Best term life insurance: Legal & General America
Best whole life insurance: MassMutual
Best universal life insurance: Pacific Life
Best instant decision life insurance: Brighthouse Financial
Methodology
Why you can trust our picks
Our recommendations are based on internal and external expert analysis, as well as our Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. When reviewing a life insurance company, our editorial team uses a proprietary scoring rubric with five factors — price, policy details, financial strength, transparency, and customer experience — to assign an unbiased rating between one and five stars. These ratings are also taken into consideration as part of our company recommendations. We don’t get paid for our reviews.
Our reviews and recommendations can help you find a reliable insurer for your family’s financial protection, but the best life insurance company for you depends on multiple factors. A licensed agent at Policygenius can support you during the application process to ensure you get the right coverage for your circumstances at the most competitive price.
Best term life insurance for executives
2023 Policygenius award winner
Legal & General America
4.9
30+ year terms
All 50 states
No-medical-exam option
Why we chose it
Legal & General America, which also does business as Banner Life and William Penn, has some of the longest term lengths — up to 40 years — and most competitive life insurance rates available, even for people with a history of medical conditions.
Pros and cons
Pros
Competitive rates for a variety of health conditions
Fast instant-decision option for qualifying applicants
Variety of term lengths up to 40 years
Cons
Application underwriting can take longer than average
Does not have the most competitive rates for older applicants
In line with our best overall life insurance company of 2023, Legal & General America, which also does business as Banner Life and William Penn, offers competitive pricing for people who qualify for best rates, as well as people who may have a pre-existing condition.
It also offers a seamless no-medical-exam application process for those with few health conditions or risk factors, which can provide a convenient way to get up to $2 million in coverage.
Best whole life insurance for executives
2023 Policygenius award winner
MassMutual
4.9
All 50 states
Why we chose it
MassMutual’s whole life insurance plan provides a lifetime coverage option that builds cash value with the potential to earn dividends.
Pros and cons
Pros
Strong financial stability ratings
Higher potential for dividends for whole life policyholders than many competitors
Good customer satisfaction ratings
Cons
High term life premiums
Term life not available through Policygenius
MassMutual is a reputable company that pays higher dividends to its policyholders than others. If you’re focusing more on diversifying your investment portfolio and less on income protection, MassMutual is a good choice for you.
Best universal life insurance for executives
2023 Policygenius award winner
Pacific Life
4.8
All 50 states
No-medical-exam option
Why we chose it
Pacific Life offers some of the lowest rates for term life insurance across age brackets. It also has the most competitive rates for many health conditions and builds.
Pros and cons
Pros
Extremely affordable across age brackets
Affordable guaranteed universal life insurance option for people who need lifetime coverage
Favorable underwriting for many health conditions
Cons
Traditional term life not available in NY
There are better carriers for active duty military, people who have a history of alcohol abuse, and people who have been through bankruptcy
Pacific Life is an A+ rated company that offers a competitively priced guaranteed universal life insurance option. It also offers a return of premium feature. This makes it a great choice for someone who is looking for a permanent death benefit with lower risk.
Best instant decision life insurance for business owners
2023 Policygenius award winner
Brighthouse Financial
5.0
No-medical-exam option
Why we chose it
Brighthouse Financial offers competitive rates, comprehensive coverage, and application decisions in as little as 24 hours, making it a great choice for people who want to get life insurance coverage without having to take the medical exam.
Pros and cons
Pros
Extremely affordable
Instant-decision applications
Best-in-class no-exam option
Cons
Traditional term life not available in CA, IL, LA, ME, or NY
Term life applicants limited to ages 25-50
Brighthouse financial offers a seamless instant decision application process for people with few or minor health conditions. Instead of the traditional medical exam, you’ll answer additional health questions over the phone. You can apply for up to $3 million of coverage.
Best types of life insurance for CEOs & CFOs
The best type of life insurance for business owners and executives will depend on their financial needs and goals. Term life insurance and permanent life insurance are the two main types, though many executives may find that a combination of policies may serve their needs the best.
Term life insurance
Term life insurance is one of the most straightforward and affordable life insurance options on the market. It’s the best option for most people looking to protect their income and provide their family with a financial safety net.
Term life insurance is useful for high earners because, in the event of the insured’s death, it can provide extra funds to their loved ones without them having to sacrifice other assets in order to maintain quality of life.
Permanent life insurance
Certain types of permanent life insurance — like whole life insurance — are appropriate for people who are already maximizing contributions to other investment accounts and looking to buy life insurance to diversify their investment portfolio, or for people who have long-term protection needs, like dependents who require lifelong care.
Permanent life insurance policies offer a cash value component in addition to the death benefit.
If you’re seeking life insurance as an investment or estate planning tool, a permanent life insurance may suit your needs. It’s typically recommended to speak with a financial advisor before purchasing a permanent life insurance policy.
Universal life insurance
Universal life insurance is a flexible type of permanent life insurance policy that comes with a cash value component. It allows you to increase or decrease how much you pay toward premiums, and even cover those payments using the policy’s cash value.
A universal life policy can be a good fit for someone who is looking for some flexibility in their life insurance — and can afford that flexibility. It’s best for high earners who are trying to build a nest egg without entering a higher income bracket.
Instant decision life insurance
Instant decision life insurance typically refers to term life policies that differ from the traditional application process and offer expedited approval.
Instant decision life insurance policies don’t require the in-person medical exam. Instead, you answer additional health questions over the phone.
The insurance company then reviews existing medical, driving, and financial records to determine your eligibility and premiums.
To be eligible to apply for an instant issue policy, you typically need to have few health conditions and risk factors. This is a great option for CEOs, CFOs, and other executives seeking to get up to $3 million in coverage quickly and easily.
→ Learn more about the most common types of life insurance
How much does life insurance cost for CEOs & CFOs?
A 30-year-old female CEO with few health conditions and risk factors can expect to pay as little as $64.39 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 $84.70 for the same coverage. A $2 million whole life insurance policy can cost between $1,598 and $1,837 for executives with a similar profile.
The exact amount you pay will be dependent on your age, gender, health, and lifestyle risk factors, as well as how much coverage you’re seeking and the type of policy you’re applying for.
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
When should CEOs & CFOs purchase life insurance?
Generally speaking, many people buy life insurance as soon as they have the financial protection needs that warrant a policy — in anticipation of getting married, having children, or buying a house. The same logic applies to people who are CEOs or CFOS.
You may need to revisit your financial plan, too, if you’ve begun your role as CEO or CFO fairly recently. As your income increases, your coverage needs will likely increase as well.
Regardless of your profession, the younger you are when you apply, the cheaper your life insurance rates will be, because we all become riskier to insure as we age.
Benefits of life insurance for CEOs & CFOs
Life insurance provides a financial safety net to your family if something were to happen to you. A business owner’s life insurance policy also provides financial security to their company.
Income protection is key to financial planning for any high earner, including CEOs and CFOs.
When working as a licensed agent, I would typically tell clients that for a nominal premium, it often makes sense to protect at least a portion of their income to give their family a buffer in a worst-case scenario.
This is the case even if someone is approaching the point at which they’ll be able to self-insure. With the addition of a life insurance policy, the insured’s loved ones won’t have to sacrifice any hard-earned assets if the family income changes.
If you already have term life insurance in place, a whole life insurance policy can add to your financial plan or help with estate planning needs. Speaking with a financial advisor can help you determine which life insurance policy — or combination of policies — is best suited for you.
→ Learn more about life insurance for estate planning
Considerations for CEOs & CFOs
If your business is international and you spend more than six months out of the year outside the United States or Canada, you may qualify for a life insurance policy with fewer American companies. You may have to answer a few additional questions about your global net worth in order to justify coverage.
Most insurance companies require you to complete the application and medical exam, if required, in the United States, too.
If you’re a CEO, CFO, or other executive and you spend a significant portion of your time outside of the U.S., speaking with a Policygenius expert can help match you to the best insurer for your personal circumstances.
Life insurance for other occupations
Frequently asked questions
Should CEOs & CFOs get life insurance?
Yes. CEOs and CFOs typically need life insurance if they have people who depend on them financially. Permanent life insurance products can also be used to diversify your investment portfolio, and they can serve as a useful estate planning tool.
Do CEOs & CFOs have life insurance?
CEOS, CFOs, and other executives may have some group life insurance coverage through their place of work, but most financial advisors recommend individual policies for more comprehensive coverage that’s tailored to your needs.
How much life insurance should a CEO or CFO get?
Top executives can consider up to 10 times their annual income in coverage, but the amount that’s right for you will depend on your personal situation: your assets, liabilities, dependents, and financial planning goals. You can connect with a Policygenius expert or meet with a financial planner for a personalized recommendation.
