I guess they can justify them. Possibly due to the fact that if they collect on the death of an officer, the proceeds are tax free. If they insure enough officers, the tax-free nature of the proceeds makes it a wash, taxwise.
Believe me, except for group term life insurance limited to $50,000 of coverage per insured, or some type of life insurance purchased through a pension plan, life insurance premiums are not deductible.
They borrow the money to buy the premiums. It's debt. A write-off.