Disability insurance protects your wallet if you’re unable to work due to an injury or illness.
Disability Insurance
Short-Term Disability
Who's Eligible
All US-based regular full-time American Express colleagues and regular part-time American Express colleagues scheduled to work 20 or more hours per week are eligible for Short-Term Disability (Salary Continuation) after completing six consecutive months of service. Enrollment is automatic and the coverage is provided at no cost.
Coverage
You are eligible for Salary Continuation payments for up to the first 26 weeks of your disability.
Long-Term Disability and the
Tax Choice Option
Long-Term Disability (LTD) Plan
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Who's Eligible
Every eligible US colleague* automatically receives Long-Term Disability (LTD) coverage at no cost.
Coverage
If you become disabled** and can’t work for more than six consecutive months, LTD coverage ensures you will still be paid 65 percent of your annual salary (pre-disability earnings), up to $500,000 ($27,083 monthly maximum, and $50 monthly minimum). You don’t have to pay anything for this coverage — Amex covers the cost.
How Payments Work
You can elect the Tax Choice option to have tax-free benefit payments or you can elect to have taxes withheld from your LTD benefit when payments are made.
Here’s how the Tax Choice option works:
- Your LTD premiums will be company-paid regardless of whether you elect the Tax Choice option.
- If you elect the Tax Choice option, you will have taxable imputed income equal to the company-paid LTD premiums reported in your paychecks and on your W-2.
- If you elect the Tax Choice option and you later become disabled, you will receive tax-free LTD benefit payments per the Group LTD policy.
If you do not take action to elect the Tax Choice option, you will have no taxable imputed income reported for your LTD coverage in your paychecks or on your W-2, but any LTD benefit payments you receive in the event you become disabled will be taxable.
*You are eligible if you are a regular full-time or part-time US employee scheduled to work at least 20 hours per week.
**Please refer to the LTD Summary Plan Description for the definition of disability.
Enhanced Long-Term Disability
Who's Eligible
You’re eligible for the Enhanced LTD Plan if you meet all the following requirements:
- You’re classified by the company as a regular full-time colleague, you’re eligible for US benefits regardless of citizenship or Green Card status, you have a permanent US residence address and you signed the Enhanced Long-Term Disability Benefit application in the US;
- You’re 70 years of age or younger;
- You’re in pay Band 40 or above, or in pay Band 35 and earning $150,000 or more; and
- You’re actively at work.
Coverage
Enhanced LTD coverage replaces 65 percent of your monthly eligible covered compensation (your annual cash incentive pay and base salary over $500,000) up to a maximum benefit of $15,000 per month. (The minimum benefit is $500 per month.) Please refer to the Enhanced LTD Summary Plan Description for further details.