If you have a high income or a high net worth, you can use life insurance to support your family or protect an inheritance when you die. We researched the best companies and policy options for high-net-worth individuals to help you maximize your wealth.
Why should you buy life insurance if you have a high net worth?
If you earn a high salary, it usually makes sense to insure your income, just like you would insure a house, car, or any other asset. For high-net-worth individuals, life insurance is often less about basic income replacement and more about providing liquidity, protecting assets, supporting business continuity or transferring wealth efficiently.
Business protection. If you share business ownership with a partner, you can take out life insurance to help protect against financial loss if one owner dies. The death benefit can provide funds that the surviving owner may use to purchase the deceased owner’s share of the business. A separate buy-sell agreement can establish the terms for transferring an owner’s business interest after their death, and life insurance is often used to fund that agreement. However, business owners can purchase life insurance for this purpose without having a formal buy-sell agreement in place.
Cash value growth. Certain permanent life insurance policies that come with cash value accounts can protect your money from stock market fluctuations. A traditional investment account usually offers higher returns, but some cash value returns, while usually lower, are more predictable.
Cash value life insurance can also provide risk and tax diversification. Cash value generally grows tax-deferred, and policyholders may be able to access the cash value through income tax-free withdrawals and loans when certain requirements are met. These features may be especially useful for people whose income makes them ineligible for Roth IRA contributions or limits their access to other tax-advantaged savings options.
Estate taxes. If you have assets totaling more than $15 million, or $30 million [1] for married couples, [1] your family may need to pay estate taxes of up to 40%, which could decrease their inheritance. A life insurance with a death benefit equal to or greater than the anticipated tax burden can help to offset these taxes and preserve your loved ones’ wealth.
“The greatest advantage most policies offer high-net-worth families is speed. Life insurance proceeds are often paid out within the month of someone’s passing,” says Ian Bloom, CERTIFIED FINANCIAL PLANNER® , Registered Life Planner, and owner of Open World Financial Life Planning. “This can make a substantial amount of funds available for the family in a financially vulnerable time, while the estate details are still being worked out.”
How much life insurance do high-net-worth individuals need?
High-net-worth individuals may need life insurance for more than income replacement. The right coverage amount depends on personal, family, business and estate planning goals.
High-net-worth users may need to coordinate coverage with a financial planner, estate attorney and licensed insurance professional. Existing assets may reduce the need for basic income replacement but may not eliminate the need for estate liquidity or business planning coverage.
What are the best life insurance options if you have a high net worth?
The best type of life insurance for you will depend on your financial goals. Sometimes, a combination of different types of policies can provide the right amount of financial protection for people with high coverage needs.
Term life insurance
If you’d like to provide your family with extra funds if you pass away unexpectedly or help them replace your lost income if you’re still earning a salary, term life insurance may be right for you.
Many financial advisors recommend buying a life policy equal to 10 to 15 times your income. But the amount that’s right for you will depend on your personal financial situation — including your assets, debts, household income, and dependents.
Sometimes larger insurers are more likely to offer policies with very high coverage amounts, which is a helpful factor to keep in mind while shopping.
Permanent life insurance
If you’re interested in a permanent, guaranteed death benefit and another possible source of tax-advantaged cash, then a permanent policy with a might be a better fit.
High-earners who have already maximized contributions or are phased out of other tax-deferred savings accounts — like 401(k) or Roth IRA — could consider whole life insurance or other permanent policies.
Many whole life policies have a cash value feature that grows at a fixed low interest rate set by the insurer, making it a safe and predictable source of growth. Participating whole life policies may also pay dividends based on the insurer’s financial performance. While dividends are not guaranteed, they can contribute to overall cash value growth and may result in long-term performance comparable to that of conservative, bond-oriented portfolios.
Other types of permanent policies, like indexed universal life insurance (IUL) or variable universal life insurance (VUL), give you the opportunity for more tax-deferred gains than a whole life policy, though they carry some risk. Variable life policies in particular must be registered with the SEC due to their complex investor choices. [2]
Regardless of the type of permanent life insurance policy you purchase, you don’t have to worry about your coverage expiring.
Permanent life insurance has some downsides to consider, too.
It’s much more expensive than a term life policy with the same payout.
Some types of policies—particularly accumulation-focused indexed universal life (IUL) and variable universal life (VUL) products—can come with greater risk if the investments or market indexes tied to cash value performance underperform. By contrast, protection-focused IUL and VUL products can provide well-guaranteed death benefits when required premiums are paid consistently, depending on the terms and guarantees of the policy.
You’ll have to make costly premium payments for years — and potentially decades — in order to reap the full benefits of the policy.
Make sure to discuss your options with a financial advisor in order to find the best life insurance policy for your needs.
Learn more about the differences between term and whole life insurance
Comparing different types of life insurance for high-net-worth individuals
Learn more about IUL vs. whole life insurance
Irrevocable life insurance trusts (ILITs)
An ILIT is a permanent legal arrangement, an entity, that owns your life insurance policy, so the payout stays out of your taxable estate when you pass away. Individuals use this entity to own, pay and receive the benefits of a life insurance policy.
An irrevocable life insurance trust (ILIT) is a trust that can’t be altered or revoked once it’s issued.
An ILIT is a separate entity that can hold assets like a life insurance policy. It acts as the policyholder.
When you die, the death benefit is put into the trust. It then pays the proceeds to your beneficiaries according to your instructions.
An ILIT can be an effective way to pass wealth onto your children. It ensures that your beneficiaries can claim the policy proceeds quickly, and it keeps your life insurance proceeds out of your taxable estate, as long as it was created more than three years prior to your death. Since an ILIT is irrevocable, the policyholder gives up certain control over the policy once it is transferred to or purchased by the trust. ILITs also require careful administration, including premium payment planning and trustee management.
You can work with an estate attorney to ensure your trust is set up correctly.
Learn more: Is life insurance a good investment?
Life insurance and estate taxes for high-net-worth individuals
Life insurance can help provide liquidity for estate taxes, but ownership and beneficiary structure matter.
Policy ownership: If the insured owns or controls the policy, the death benefit may be included in the taxable estate.
Beneficiary designation: Naming an estate as beneficiary can create probate and estate tax complications.
ILIT planning: A properly structured ILIT may help keep proceeds outside the taxable estate.
Three-year rule: Transferring an existing policy to a trust shortly before death may still cause estate inclusion.
Estate liquidity: The death benefit can help heirs pay taxes or settlement costs without selling assets quickly.
Professional guidance: Estate tax rules are complex and should be reviewed with an estate attorney or tax advisor.
Best life insurance companies for high-net-worth individuals
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 high-net-worth applicants: Lincoln Financial
2026 Policygenius award winner
Lincoln Financial
Why we chose it
Lincoln Financial offers a diverse array of life insurance policies, including competitive no-med and high-net-worth options.
Pros and cons
Pros
Affordable rates
Good for many existing health conditions, including depression, stroke, and heart conditions
Good for marijuana users, including daily users
Cons
Term life not available in New York
According to our analysis, Lincoln Financial offers some of the highest coverage amounts for term life insurance compared to other companies. You can buy up to $60 million in coverage from Lincoln Financial if your income and assets justify it.
Best whole life insurance for high net worth individuals: MassMutual
2026 Policygenius award winner
MassMutual
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 & good customer satisfaction ratings
Higher potential for dividends for whole life policyholders than many competitors
Term coverage has strong conversion privileges to permanent coverage
Cons
High term life premiums
In addition to having high coverage amounts available — $10 million or more — our analysis found that MassMutual pays dividends to its whole life insurance policyholders, which means your cash value can grow faster. Dividends are not guaranteed, but they can be used to increase cash value, reduce premiums, take cash or buy additional paid-up insurance, depending on the policy. Plus, the company has high financial ratings from trusted third-party agencies like AM Best, so you can count on the company to be financially stable for years to come.
Learn more about the best life insurance companies of 2024
How to buy life insurance if you have a high net worth
Comparing quotes and policy features from different life insurance companies is the best way to find a policy that protects your family and fits all of your needs. A Policygenius agent can help you get the right coverage to protect your legacy.
How can life insurance support wealth transfer and planning?
Term life insurance can be used to build wealth across generations by providing a payout to your surviving loved ones. The death benefit can be used to pay estate tax, as well as preserve remaining assets. In that sense, term life insurance is more designed to protect wealth rather than to build it.
On the other hand, permanent life insurance can be used to complement an investment strategy, since you can access the cash value from your policy while you’re alive.
“If used properly, the proceeds [from a permanent life insurance policy] can be accessed tax-free as a loan, and the interest rates are guaranteed,” says Bloom of Open World Financial Life Planning. “This enables the policies to act similarly to a low-return bond portfolio with minimal tax implications.”
Policy loans are generally not taxable as income when taken, but they accrue interest and can become taxable if the policy lapses or is surrendered with an outstanding loan balance. Just keep in mind that any outstanding loans will be subtracted from the death benefit if you die before paying it back. This means your beneficiaries would receive less money.
As a best practice, you can consult with a financial planner and a wealth manager to come up with a financial strategy that’s going to serve your needs when it comes to building wealth.
More about finding your best life insurance policy
High-Net-Worth Life Insurance FAQs
Do high-net-worth individuals need life insurance?
High-net-worth individuals may not need life insurance for basic income replacement, but it can still help with estate liquidity, business succession, inheritance planning, charitable giving or supporting dependents.
What type of life insurance is best for high-net-worth individuals?
The best policy depends on the goal. Term life can cover temporary income or business needs, while permanent life insurance may support estate planning, lifelong coverage or cash value goals.
Can life insurance help pay estate taxes?
Yes, life insurance can provide liquidity to help heirs pay estate taxes or other estate settlement costs. However, policy ownership and beneficiary structure matter because the death benefit may be included in the taxable estate if not structured properly.
Can permanent life insurance build wealth?
Permanent life insurance can build cash value and may complement a broader financial plan, but it is usually expensive and complex. It should be compared with other investment, retirement and estate planning options.
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