Salaried employees? Here is a pension savings solution that works for you.

An Executive Insurance is a pension insurance product designed for executives and salaried employees, structured as a life insurance policy with a pension component. The policy includes contributions for severance pay and pension benefits, with costs shared between the insured employee and the employer. The portion allocated for severance is accumulated as a severance compensation fund, to be used upon termination of employment or retirement.

An Executive Insurance plan incorporates three main components:

1. Retirement Savings – A long-term savings component intended for use after retirement. Benefits are typically paid as a monthly annuity in accordance with the policy terms (unlike in the past, when a choice between a lump-sum capital payment and a monthly annuity was more common).

2. Disability Insurance (Loss of Earning Capacity Insurance) – Provides insurance coverage in cases of full or partial disability resulting from an insured event occurring during the coverage period. In such cases, a monthly benefit is paid according to the policy terms.

3. Life Insurance/Term Life Insurance – Provides financial protection in the event of the policyholder's death. The sum insured is paid to the designated beneficiaries, and in the absence of beneficiaries, to the legal heirs in accordance with applicable law.

Executive Insurance is recognized as a provident fund under Israeli Income Tax regulations and may grant tax advantages to both the employee and the employer. The accumulated savings are also subject to applicable tax and regulatory provisions.