Disability Insurance When Your Income Is Your Biggest Asset

For most high-earning tech professionals, the largest asset on the balance sheet isn't the house or the brokerage account — it's the millions in income still ahead of you. Disability insurance is what protects that asset if you couldn't work. It's also the coverage most people assume their employer fully handles, and most employers don't.

Why income is the asset to protect

Early-to-mid career, your future earnings are worth far more than what you've saved so far. A disabling illness or injury that stopped your income would be financially devastating in a way no property loss could match. Disability insurance replaces a portion of that income so the plan survives.

Why employer coverage usually falls short

Group long-term disability through work is a real benefit, but it has limits:

• It often replaces only 50–60% of base salary — and may exclude bonus and equity, which for tech employees is a large share of total comp.
• Benefits are often capped at a monthly maximum that high earners exceed.
• It's typically taxable when the employer pays the premium, reducing what you actually receive.
• It's not portable — it ends when you leave the job.

What to do

1. Know what your group policy actually covers — percentage, cap, and whether bonus/equity count.
2. Add individual coverage to fill the gap, sized to your real income.
3. Revisit as your comp grows, especially as equity becomes a bigger share.

Frequently asked questions

Is my employer's disability insurance enough for a high tech salary? Often not. Group coverage typically replaces 50–60% of base salary, may exclude bonus and equity, is frequently capped, and isn't portable. High earners usually need individual coverage to fill the gap.

Does disability insurance cover my RSU income? Group policies usually base benefits on base salary and may exclude equity. Individual policies can be structured to reflect more of your total compensation.

When should a tech professional buy disability insurance? Early — coverage is cheaper and easier to qualify for when you're young and healthy, and your future income (the thing it protects) is largest early in your career.

More in this series: The Annual Insurance Review for a High-Income Family · What Your Employer Benefits Don't Cover (Home, Auto, Umbrella)

Related: Coverage Gap Calculator → · The Equity-Wealthy Household’s Insurance Guide →

Life changes ripple across every policy you hold; A Sudden-Wealth Insurance Checklist and Excess Liability vs Umbrella: The Difference are useful companions to this guide.

Trella Insurance is an independent brokerage in Bellevue, WA. Request a free review or try the coverage gap calculator.