GE’s Death Perk for Immelt Is a $22 Million Life Insurance Benefit
As several companies scale back on executive perks due to heightened disclosure requirements and scrutiny of pay practices, life insurance benefits have not received as much attention. At General Electric, the CEO has amassed $22 million of life insurance coverage; this policy could eventually help his heirs pay the taxes for his estate.
Attorney Joshua Husbands said affluent clients considering life insurance policies are looking more to variable plans offering investment opportunities in hedge funds or private-equity funds.
“These are the types of investments high-income folks would be making anyway—and now they’re available on a tax-preferential basis through an insurance policy,” Mr. Husbands said. “Life insurance isn’t just about the death benefit anymore.”