Executive benefits

A benefits package should support employees at every level, from the front line to the C-suite. For executives, supplemental benefits can help address needs that standard group plans may not fully meet.

Building a package to attract and retain top talent

Key takeaways

Executive benefits are complementary compensation and protection arrangements offered to senior leaders and highly compensated employees, designed to go beyond standard group plans.
Standard group benefits may leave some highly compensated employees with coverage gaps because group disability plans cap coverage and may exclude bonus and commission income.
A competitive executive benefits program generally combines life insurance, disability income protection, and supplemental retirement savings.
Companies use executive benefits as a strategic tool to attract, reward, and retain key executive talent.
Certain portable, supplemental coverages may offer flexibility that standard group plans do not provide.

What are executive benefits?

Executive benefits are supplemental compensation, insurance, and protection arrangements tailored to the needs of a company’s senior leaders and highly compensated employees. Executive benefits may be offered in place of or in addition to standard employee group benefits. Executive benefits plans often include executive life insurance and executive disability insurance, in addition to retirement benefits tailored to executives’ needs. These are often offered in addition to standard employee benefits like group life insurance, retirement plans, and paid time off, primarily because executive benefit plans can support efforts to recruit and retain key talent.

Why standard benefits fall short for executives

Standard employee benefits packages are helpful, but they may fall short of meeting the needs of executive employees for a few main reasons: Group life and disability plans cap benefits at levels that may not fully replace the income of high earners, leaving them potentially underinsured. For instance, group LTD plans often have a benefit cap of $10,000–$15,000, which can result in a significant shortfall for certain high earners.

Some disability insurance plans exclude earnings from bonuses and equity compensation in the calculation of disability benefits. Because these compensation types often account for a large share of executive pay packages, standard LTD plans can fall short.
IRS 401(k) contribution limits ($24,500 for 2026) can leave a retirement savings gap for high earners.¹

Additionally, many standard group benefits are not portable, meaning they do not follow the employee when they leave the company. Certain executive benefits can be portable, adding to their appeal.

What’s typically included in an executive benefits package

Executive life insurance	Life insurance packages with benefits commensurate with executive compensation packages and family lifestyle continuation needs.
Executive disability income protection	Long-term disability insurance with benefits commensurate with executive-level compensation.
Supplemental retirement plans	Additional retirement plans or employer match benefits to expand total retirement savings benefits.
Tertiary benefits	Other fringe benefits such as financial counseling services, club memberships, and medical exams for executives. According to a 2023 Goldman Sachs survey, financial counseling was the most commonly offered benefit, at 73%.²

Executive life insurance

Executive life insurance is a key executive benefit for many companies. These plans are customized to the needs of highly compensated employees. There are two prevailing ownership structures for executive life insurance:

Individually owned by the covered employee. This provides a death benefit for the surviving beneficiaries, plus a cash value component that can supplement retirement savings. These plans may also be portable, carrying over if the employee leaves the company.

Corporate-owned by the employing company. This is often used to partially fund executive retirement plans, pensions, or deferred compensation. The employee is the insured individual, with the company listed as the beneficiary. Both the cash value component and the eventual death benefit are used by the company to recoup some of the costs of executive retirement benefits. An executive life insurance arrangement may use several forms of permanent life insurance, including variable universal life, universal life, indexed universal life, or whole life insurance. Unlike term life insurance, permanent life insurance can build cash value.* Some whole life policies do not have cash values in the first two years of the policy and do not pay a dividend until the policy’s third year. Talk to your financial advisor and refer to your individual whole life policy illustration for more information. Guaranteed-issue or simplified-issue underwriting may be used to streamline enrollment and broaden eligibility, subject to product terms.

Executive disability income protection

Executive disability insurance provides income protection if a covered illness or injury prevents the executive from working. It may supplement standard long-term disability coverage by including certain bonus or commission income, subject to policy terms. Standard group plans may exclude these compensation types from benefit calculations. Executive disability benefits are usually provided through individual disability insurance (IDI) plans. These plans are designed to supplement standard group long-term disability coverage. Benefits may coordinate with group coverage and government programs, subject to the applicable policy and program rules. IDI plans may also be portable, meaning they can be maintained if the executive leaves the company. Income protection is a sought-after benefit for high earners, making executive disability benefits an important component of a retention-focused benefits strategy.

Executive retirement and deferred compensation

Retirement and deferred compensation benefits aim to retain key employees by supplementing traditional retirement plans such as 401(k)s and other qualified retirement plans. IRS limits place a cap on annual 401(k) contributions ($24,500¹ for 2026), which leaves some high earners able to save more than they can place in tax-advantaged retirement accounts each year. Executive benefits can fill this gap by providing supplemental retirement savings benefits. Common plans include:

Supplemental Executive Retirement Plan (SERP): An employer-funded, nonqualified deferred compensation plan. SERPs do not require IRS approval, unlike qualified plans. Benefits, vesting schedules, and other details are customizable by the employer. Taxes are deferred for both employee and employer until distributions begin in retirement.
Nonqualified Deferred Compensation Plan (NQDC): An employer-sponsored plan that allows employees to defer a portion of their income and requires a payout schedule to be established.

Both plan types may provide tax efficiencies without interfering with the use of traditional retirement plans. These plans can be used in combination with traditional 401(k) plans, helping supplement retirement income and allowing high earners to defer more of their pay and set aside more for retirement. Customizable vesting schedules can also support retention goals.

The strategic case for attracting, retaining, and protecting talent

Retaining key talent is important to any business, and executive benefits can support an employer’s recruitment and retention strategy. Competitive companies now use benefits as part of a holistic employee well-being strategy, which benefits employees and the company. Increasingly, workers are seeking support from employers beyond a basic compensation package: a 2023 study found that only 38% of workers believed their employer cared about their well-being.³ “Our study shows that employers understand that they have a responsibility to meet employees’ financial wellness needs, with 80% saying that improving workers’ financial confidence is very or extremely important,” says Jonathan Mayhew, Head of Group Benefits at Guardian.⁴ This helps explain why some companies view executive benefits as part of their recruitment and retention strategy.

How brokers and financial advisors can help

Benefits brokers and financial advisors can help employers explore executive benefits for their organizations. They can be a resource for creating a set of benefits that addresses the needs of an executive team. These professionals can explain how executive benefits can supplement existing group benefits and how SERPs with customized vesting schedules may support long-term retention. They can also help employers weigh the potential costs and benefits of expanding executive benefits.

Building the right executive benefits program

A strong executive benefits program includes products tailored to the needs of key employees. It should help employees feel supported and valued while encouraging them to stay with the company. Primary components may include:

Expanded life insurance.
Expanded disability insurance.
Supplemental retirement savings plans.

Additional benefits could include club memberships, financial counseling, tax preparation services, annual medical exams, and access to a company car. Employers may also consider how supplemental benefits coordinate with existing plans and whether coverage is portable.

Guardian can help

Guardian brings experience in helping employers explore specialized benefits for key employees. Explore Guardian’s executive benefit options today or connect with a financial advisor in your area to get started.

Group Life Insurance Explained, Investopedia, July 2026
2023 Life Insurance Fact Sheet, LIMRA, 2023
2025 Facts About Life Insurance, LIMRA, 2025
Mind, Body, and Wallet® 2026, Guardian’s 15th Annual Workplace Benefits Study, 2026
401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500, IRS, November 2025

The defunct Executive Life Insurance Company is unrelated to executive life insurance as a benefits product, and the two should not be confused.

“Financial advisor"/“advisor” is used generally to describe insurance/annuity and investment sales and advisory professionals who may hold varied licensing as insurance agents, registered representatives of broker-dealers, and investment advisory representatives (IAR) of registered investment advisors, respectively. Only those representatives who use advisor in their title or otherwise disclose their status and meet the necessary licensing or registration requirements provide investment advisory services.

Executive benefits

Building a package to attract and retain top talent

What are executive benefits?

Why standard benefits fall short for executives

What’s typically included in an executive benefits package

Executive life insurance

Executive disability income protection

Executive retirement and deferred compensation

The strategic case for attracting, retaining, and protecting talent

How brokers and financial advisors can help

Building the right executive benefits program

Guardian can help

Disclaimer9089611.1•Exp 10/28angle down

Building a package to attract and retain top talent

What are executive benefits?

Why standard benefits fall short for executives

What’s typically included in an executive benefits package

Executive life insurance

Executive disability income protection

Executive retirement and deferred compensation

The strategic case for attracting, retaining, and protecting talent

How brokers and financial advisors can help

Building the right executive benefits program

Guardian can help