IT Professional Disability Claims

Protecting High-Income Tech Careers with Individual Disability Insurance

Your career in tech is built on specialized skills, continuous learning, and the cognitive capacity to solve complex problems under pressure. Whether you're a software engineer, systems architect, cybersecurity specialist, or data scientist, you've likely invested years in education, certifications, and on-the-job expertise to reach your current income level.

That's why many IT professionals purchase individual disability insurance (IDI)—private policies designed specifically for high earners whose salaries exceed the caps in typical employer-sponsored coverage. Unlike the group long-term disability plans offered through most tech companies, IDI policies are individually owned, portable between jobs, and often include stronger own-occupation protections.

But when a disability threatens your ability to code, troubleshoot systems, or maintain the intense focus your role demands, securing those IDI benefits can become a fight. Insurers routinely minimize cognitive impairments, challenge the specialized nature of IT work, or argue that because you can perform some administrative tasks, you're not "totally disabled" under your policy.

At Sandstone Law Group, we understand the unique demands of IT careers and the specific challenges tech professionals face when pursuing individual disability claims.

What Is Individual Disability Insurance (IDI)?

Individual disability insurance is a private policy you purchase directly from an insurer—separate from any coverage your employer provides. IDI is designed for professionals earning above the typical benefit caps in group plans, offering higher monthly benefits and more comprehensive protection.

Key Differences Between IDI and Employer-Sponsored LTD:

Feature	Individual Disability Insurance (IDI)	Employer-Sponsored LTD (ERISA)
Ownership	You own the policy; it's portable if you change jobs	Employer owns the plan; coverage ends with employment
Coverage During Layoffs	Continues after job loss as long as you pay premiums	Terminates on your last day of work—no continuation option
Benefit Amount	Covers up to 60-70% of total income, including bonuses and equity compensation	Often capped at $10,000-$15,000/month regardless of salary
Own-Occupation Period	Often extends to age 65 or longer	Typically converts to "any occupation" after 24 months
Legal Framework	State insurance law; right to jury trial and punitive damages	ERISA federal law; extremely restrictive, no jury trial
Premium Payment	You pay with after-tax dollars; benefits are tax-free	Often employer-paid; benefits may be taxable

For IT professionals earning $150,000+ annually, the benefit caps in employer plans rarely provide adequate income replacement. A $200,000 salary might generate only $10,000-$12,000 monthly through group LTD—less than half your pre-disability income. IDI fills that gap, protecting the full scope of your earning capacity. Dive deeper into the differences between IDI and employer-sponsored LTD denials in this guide.

Why IT Professionals Purchase IDI

The tech industry's volatile employment landscape makes individual disability insurance especially valuable. When you're navigating layoffs, job changes, or entrepreneurial ventures, IDI provides continuity that employer-sponsored coverage cannot.

Common reasons IT professionals invest in IDI:

• High salaries exceed group plan caps – Software engineers, architects, and senior developers often earn $150,000-$300,000+, far above what group plans cover
• Equity compensation and bonuses – IDI can include stock options, RSUs, and performance bonuses in income calculations
• Job mobility – Policies remain active through career transitions, layoffs, or startup launches
• Strong own-occupation protection – True "own-occupation" definitions protect your specific technical role, not just any desk job
• Residual benefits – Partial disability coverage if you can work reduced hours or take a lower-stress position

For IT professionals at companies like Intel, Microsoft, Amazon, or Oracle—especially those facing the 2025-2026 tech layoff wave—IDI represents a critical safety net independent of employer volatility.

Understanding "Own-Occupation" Coverage for IT Professionals

Most high-quality IDI policies promise "own-occupation" or "true own-occupation" protection, meaning you qualify for benefits if you cannot perform the material duties of your specific role—even if you could theoretically work in another capacity.

For IT professionals, this distinction matters enormously. Your occupation isn't "computer work"—it's software engineering, network architecture, database administration, or cybersecurity analysis. Each requires specialized skills, sustained cognitive focus, and often the ability to work extended hours under deadline pressure.

How insurers distort own-occupation for IT professionals:

• Claiming "IT work" is too broad – Arguing you can still perform some computer tasks, so you're not disabled from your occupation
• Minimizing cognitive demands – Suggesting that if you can sit at a desk and type, you can work, ignoring the analytical complexity of your role
• Exploiting partial duties – Pointing to administrative tasks, code reviews, or team leadership as proof you're still "working" in your occupation
• Residual income misapplication – Reducing benefits if you continue earning any income, even if you've lost the ability to perform core technical functions

We've seen senior developers denied because they could still "manage projects," even though they could no longer write code. We've seen network engineers denied because they could "consult," even though cognitive impairments prevented real-time troubleshooting.

Your policy's own-occupation language is a contract. We hold insurers to it.

Common Disabling Conditions for IT Professionals

The cognitive and physical demands of IT work create specific vulnerabilities. Conditions that might be manageable in less demanding roles can be profoundly disabling when your job requires sustained focus, rapid problem-solving, and error-free execution.

Cognitive and Neurological Impairments:

Tech work depends on sharp analytical thinking, pattern recognition, and the ability to hold complex systems in working memory. Neurological and cognitive conditions that disrupt these functions can end careers:

• Long COVID brain fog – Persistent cognitive dysfunction, difficulty concentrating, and processing delays
• Post-concussive syndrome – Impaired focus, memory issues, and light/screen sensitivity
• Multiple sclerosis – Cognitive slowing, visual disturbances, and fatigue
• Early-onset dementia – Declining executive function and problem-solving ability
• Chronic migraines – Severe pain episodes that prevent screen work and analytical tasks
• Traumatic brain injury – Processing speed deficits and cognitive fatigue

Insurers routinely dismiss these as "subjective" or "self-reported" complaints. We work with neuropsychologists and cognitive specialists to document how these conditions specifically impair the demands of your IT role.

Musculoskeletal and Repetitive Stress Injuries:

Years of keyboard work, poor ergonomics, and sustained static postures create cumulative physical damage:

• Carpal tunnel syndrome and cubital tunnel syndrome – Nerve compression causing numbness, tingling, and reduced hand function
• Cervical disc herniation – Neck and arm pain, weakness, and neurological symptoms from prolonged screen work
• Thoracic outlet syndrome – Pain and circulation issues in arms and hands from postural stress
• Chronic tendonitis – Wrist, elbow, and shoulder inflammation from repetitive motions
• Lower back degeneration – Chronic pain from prolonged sitting and inadequate support

Even if you can still type occasionally, severe pain and reduced hand function can prevent the sustained keyboard work IT roles require. Documentation from orthopedic specialists and functional capacity evaluations becomes critical.

Mental Health and Burnout:

The tech industry's high-pressure culture, on-call demands, and constant skill obsolescence create intense psychological strain:

• Major depressive disorder – Persistent low mood, cognitive slowing, and inability to concentrate
• Generalized anxiety disorder and panic disorder – Overwhelming worry, physical symptoms, and avoidance behaviors
• PTSD from workplace trauma – Following major security breaches, layoffs, or hostile work environments
• Burnout syndrome – Emotional exhaustion, depersonalization, and reduced professional efficacy

Insurers frequently deny mental health claims by arguing symptoms are "treatable" or "temporary." We challenge these denials by showing how chronic conditions persist despite treatment and fundamentally impair your ability to perform under the cognitive demands of IT work.

Visual and Sensory Impairments:

Conditions affecting vision or sensory processing can make screen-intensive work impossible:

• Visual snow syndrome – Persistent visual disturbances and light sensitivity
• Retinal disorders and macular degeneration – Central vision loss affecting screen readability
• Light sensitivity and photophobia – From migraines, TBI, or post-COVID complications
• Vestibular disorders – Dizziness and balance issues triggered by screen movement

How Layoffs and IDI: Why Portability Matters

The 2025-2026 tech industry layoffs at companies like Intel, Microsoft, Amazon, and Oracle have exposed a critical difference between individual disability insurance and employer-sponsored group plans. When you're laid off, your employer's ERISA group LTD coverage terminates—usually on your last day of work. But IDI continues as long as you pay premiums.

This portability is one of IDI's most valuable features, especially in tech's volatile employment landscape.

What happens to disability coverage during layoffs:

Employer-sponsored LTD (ERISA):

• Coverage ends on your termination date
• You can still file a claim if you became disabled BEFORE your last day of work
• But if your disability begins even one day after termination, you have no coverage
• No option to continue coverage through COBRA or conversion
• You're completely dependent on your employer maintaining your benefits until disability strikes

Individual Disability Insurance (IDI):

• Coverage continues after layoff as long as you pay premiums
• You own the policy—it's not tied to your employer
• If you're laid off while healthy, you remain covered for future disabilities
• You control whether coverage continues, not your employer
• Provides protection through job transitions, unemployment, or career changes

This is why tech professionals invest in IDI. When Intel announces 15,000 layoffs or Microsoft cuts 10,000 positions, employees with only group LTD lose that protection the moment they're terminated. Employees with IDI maintain coverage through unemployment and into their next role.

Critical considerations when layoffs and disability intersect:

Continue paying premiums – If you're laid off, your IDI coverage continues only if premiums remain current. Don't let the policy lapse—that's when "disabled while covered" becomes an issue.

"Disabled while covered" still applies – Even with IDI, you must become disabled while the policy is active. If you let coverage lapse after a layoff and then develop a disability, you're not covered.

Income documentation becomes complex – If you're laid off and then file an IDI claim shortly after, insurers will scrutinize whether disability or job loss caused your income reduction. Strong medical documentation of when symptoms began is critical.

Severance agreements typically don't affect IDI – Unlike ERISA plans where severance waivers can create problems, your individually owned IDI policy exists independently of employment contracts. However, review any releases carefully before signing.

Residual benefits for career transitions – If disability forces you into a lower-paying or less demanding role after a layoff, IDI residual benefits can compensate for the income gap. This is especially valuable if you transition from senior engineering to consulting or part-time work.

Filing while still employed vs. after layoff – If you're experiencing symptoms while employed and a layoff is imminent, filing your IDI claim before termination can strengthen your position. It establishes the timeline clearly and avoids scrutiny about whether disability or unemployment caused your situation.

For detailed guidance on protecting disability benefits when facing tech layoffs—including the specific challenges with employer-sponsored ERISA plans—see our articles on navigating layoffs and disability coverage and what Intel employees need to know about the 2026 layoff wave.

Which Insurers Have been Reported to Deny IT Professional IDI Claims?

Based on industry experience, certain insurers are more aggressive in denying high-value IT professional claims:

Insurer	Common Denial Patterns in IT Professional IDI Claims
Northwestern Mutual	Targets physicians and high-income professionals but also covers tech workers; may challenge own-occupation definitions by arguing administrative duties mean you're not disabled
MetLife	Heavy use of IMEs with generalists; often denies based on "lack of objective findings" in cognitive or pain-related claims
Unum/Provident	Surveillance and social media monitoring to challenge claims; may argue partial work capacity based on brief activities
Guardian/Berkshire	May challenge income calculations for self-employed IT consultants or contractors; disputes over bonus and equity inclusion
Principal	Residual benefit disputes; may reduce payments based on any continuing income, even if capacity is dramatically diminished

If your IDI policy is with one of these carriers, be especially vigilant about claim documentation and consider legal guidance early in the process.

Proving Income Loss for IT Professionals

Unlike fixed-salary employees, many IT professionals have variable income that complicates IDI claims:

For W-2 employees:

• Base salary is straightforward, but bonuses, stock options, and RSUs require clear documentation
• Insurers may argue equity compensation shouldn't count toward pre-disability income
• Performance bonuses may be excluded if not guaranteed income

For contractors and consultants:

• 1099 income requires tax returns, profit/loss statements, and client contracts
• Insurers scrutinize business expenses versus personal income
• Proving the direct link between disability and client loss can be challenging

For startup founders and equity holders:

• K-1 distributions, draws, and ownership stakes create complex income calculations
• Insurers may argue ongoing business revenue means you're not disabled, even if you can't actively contribute
• Documentation of role changes and reduced capacity becomes critical

We work with financial experts to build comprehensive income documentation that withstands insurer scrutiny.

Tactics Insurers Use to Deny IT Professional IDI Claims

Despite paying premiums for years, many IT professionals face aggressive denial tactics when they finally need benefits:

Independent Medical Examinations (IMEs):

Insurers send claimants to "independent" physicians—often generalists with no expertise in neurology, cognitive disorders, or occupational medicine—who conduct brief exams and minimize symptoms. These doctors rarely understand the cognitive demands of software engineering or systems architecture.

Cognitive Testing Misinterpretation:

Standardized cognitive tests may show you're "within normal limits" despite significant deficits in the specific skills your IT role requires. Insurers use these tests to deny claims, ignoring that your baseline cognitive function was likely far above average.

Surveillance:

Insurers hire investigators to record you performing ordinary activities—grocery shopping, walking your dog, attending social events. These snapshots are then presented as evidence you're capable of full-time IT work, ignoring that brief activity doesn't equal sustained technical performance.

Residual Disability Manipulation:

If you attempt part-time work or consulting to stay active, insurers may argue you're not "totally disabled" and reduce or eliminate benefits. They ignore that you're working a fraction of previous hours at a fraction of previous intensity.

Social Media Monitoring:

Any posts suggesting activity, travel, or engagement are used against you. Even innocuous content can be weaponized to suggest you're not disabled.

Should You Appeal Your IDI Denial?

Unlike ERISA-governed employer plans, where you're required to exhaust internal appeals before filing suit, IDI policies give you more flexibility. There's no federal law requiring you to appeal before pursuing litigation.

However, appeals can still be strategic:

When an appeal makes sense:

• The denial was clearly based on a misunderstanding of facts or policy language
• You have strong new medical evidence that wasn't available initially
• The insurer's denial letter reveals weaknesses in their position that you can exploit

When to skip the appeal and pursue litigation:

• The denial was based on bad faith tactics (ignoring treating physicians, misrepresenting facts)
• The insurer has a pattern of denying similar claims despite strong evidence
• Significant time has passed and you need immediate resolution
• The appeal process is being used to delay without genuine reconsideration

At Sandstone Law Group, we evaluate whether an appeal serves your interests or simply gives the insurer more time to build their defense. Sometimes, immediate litigation under state insurance bad faith laws is the stronger strategy.

Why IDI Litigation Is Different from ERISA Claims

When you have an individual disability policy—not an employer-sponsored plan—you're no longer trapped in ERISA's restrictive framework. This opens powerful legal options:

Right to jury trial – A jury of your peers can hear your case, not just a judge applying ERISA's insurer-friendly standards.

Punitive damages available – If the insurer acted in bad faith, you can pursue punitive damages to punish wrongful conduct.

Full discovery – You can depose insurer employees, obtain internal emails and claim files, and expose patterns of wrongful denials.

Emotional distress damages – Unlike ERISA, where you can only recover unpaid benefits, IDI litigation allows compensation for the emotional harm of wrongful denials.

No administrative record limitation – Courts can consider new evidence, expert testimony, and full medical documentation, not just what was in the insurer's file.

This dramatically shifts the power dynamic. Insurers can no longer hide behind ERISA's protections.

Why Sandstone Law Group?

You deserve a law firm that understands the cognitive demands of IT work and the legal leverage it takes to make insurers honor their promises.

At Sandstone Law Group:

We understand IT professionals – We know the difference between writing production code and code review, between network troubleshooting and project management. We work with vocational experts who understand your specific technical role.

We know the insurers' playbook – We've litigated against Northwestern Mutual, MetLife, Unum, Guardian, and every other major IDI carrier. We know their denial tactics and how to dismantle them.

We're prepared for litigation – Unlike firms focused solely on ERISA appeals, we excel at state-law IDI litigation. We use bad faith claims, jury trials, and full discovery to force insurers to pay.

We treat clients as partners – You're a high-level professional. We communicate proactively, explain strategy clearly, and respect your intelligence.

We've recovered millions for professionals like you – Whether your policy promises own-occupation protection, residual benefits, or high-limit coverage, we hold insurers accountable.

Contact Sandstone Law Group

If you're an IT professional with an individual disability insurance policy and your claim is being denied, delayed, or underpaid, you don't have to accept it.

Whether your policy is with Northwestern Mutual, MetLife, Unum, or another carrier, and whether you're dealing with cognitive impairments, physical injuries, or mental health conditions, we're prepared to fight for the benefits you've earned.

Contact Sandstone Law Group at (602) 615-0050 to schedule a confidential consultation.

Frequently Asked Questions