When the unexpected happens, it pays to be prepared.
Disability Insurance is designed to provide you with income when you are unable to work due to an illness or injury. Protecting your income stream can provide you and your family with peace of mind. Proofpoint provides all eligible employees with Short and Long-term Disability Insurance.
When you’re too sick or injured to come to work, you won’t have to face it with an empty pocketbook. Disability insurance will preserve a portion of your income until you’re ready to come back.
There are two types of disability insurance:
Short-term Disability (STD) replaces 60% of your weekly salary, up to $2,308 per week for up to 12 weeks. The benefit begins seven days from the initial date of your disability or on the first day if hospitalized, reduced by other sources of disability income, including California SDI for CA residents.
Long-term Disability (LTD) replaces 60% of your monthly salary after 90 days of total disability. Long-term disability pays up to $20,000 per month, reduced by any other sources of disability income you receive.
There are two options for LTD insurance — you can choose for your benefits to be either taxable or nontaxable. If you choose to pay taxes on the premium now, your benefit (should you ever need it) will be tax-free. Depending on your tax bracket, this could result in significantly more money to spend on your ongoing living expenses. Proofpoint will continue to pay the premium for your LTD coverage and will report in your paycheck the amount of taxable “imputed” income.