Why not buy disability insurance to cover me for illnesses? Won’t they pay out if I’m on long term MC? Comparing between buying only a multipay plan vs multipay x disability hybrid, any advice?

The disability payout will depend on whether you're still on Long term MC or not. It pays you a monthly amount to replace your income (usually partially up to 75%) as Long as you are unable to go To work.

If your doctor clears you and says you're okay to go to work but you choose not to, the disability payout will stop. A CI payout on the other hand is usually lump sum and given to you all at once. You have the luxury to use it for as long as you want.

eg. if you are worried about cancer relapse and do not wish to go back to work immediately, you can still rely on CI payout to fund your living expenses. The DI payout will depend on whether you're certified medically unfit to do so or not.

But generally yes, it's a good idea to take it into consideration and often overlooked by most people. The policies compement each other.

Hi anon,

There is a difference between Disability and CI coverage.

Broadly speaking, disability insurance covers loss of income from you being unable to perform the material duties of your current job. This coverage is usually for two years, after which you have to prove that you cannot find any job that you are reasonably suited for by training and knowledge. Such incidents may not be the result of critical illnesses, in which case CI coverage won't pay out.

Critical illness pays out a lump sum upon a CI diagnosis. Now, a CI diagnosis is not the end of the world, and in some cases such as early CI, you might still be able to work, although perhaps at a lower tempo or workload. In this case, disability insurance won't pay out.