Executive insurance is one of the three possible solutions in Israel for pension savings for employees and the self-employed, along with a pension fund and a provident fund. All regulations regarding deposit rates, employer participation in deposits, tax benefits and the like also apply to executive insurance.
The uniqueness of executive insurance compared to a pension fund is that it is a personal contract that binds the insurance company like any other policy. In a pension fund the agreement is collaborative, so the returns (positive or negative) are shared among all the members in the fund.
Similar to a pension fund, executive insurance includes pension savings and can include insurance components such as loss of ability to work, survivors and more. The balance between the various components of the policy can be changed from time to time.
Pension insurance plans of the type of executive insurance and / or a pension fund, include savings for retirement age as well as insurance coverage in the event of disability and death, therefore we recommend that they be maintained and continued. Since over the years there have been changes in the terms of pension savings, freezing your old plan and opening another plan under it, can cause you irreversible damage.