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Critical Illness Needs

Size a CI lump sum against income bridge, treatment costs, debt, and care — net of existing coverage and liquid assets.

Free · No signup · Verified July 2026

Robert, The Insurance Beast mascot

How to size a critical illness lump sum

Critical illness insurance pays a tax-free lump sum if you're diagnosed with a covered condition — it's not income replacement, it's a cushion to buy time and options. This tool sizes a sensible lump sum against the pieces that actually matter: an income bridge while you or a partner take leave, treatment and travel costs your health plan won't cover, debt you'd want cleared, and care — then subtracts coverage and liquid assets you already have.

The result is a gap, not a prescription. Remember that in the real policy the covered-condition definitions and the survival period matter as much as the amount, so treat this as a starting figure for a conversation, not a quote.

Robert — winking
Robert says: modeled CI need is about $68,000 after assets and existing coverage. Definitions of covered conditions are half the product — math is the other half.
Estimated CI need

$68,000

After existing CI and liquid assets

Gross need

$93,000

Before netting assets

Covered ratio

26.9%

Existing CI + liquid ÷ gross

Income bridge

$48,000

12 months × $4,000

Robert noticed…

  • No existing CI coverage entered. Compare definitions (CLHIA-style multi-condition vs narrow) when you review quotes — definitions matter as much as face amount.

Need breakdown

Income bridge
$48,000
Out-of-pocket treatment
$15,000
Debt paydown
$20,000
Home mod / care
$10,000
Gross need
$93,000
− Existing CI
-$0
− Liquid assets
-$25,000
Net need (gap)
$68,000

Condition count is a marketing headline. Definitions (what counts as “cancer” or “heart attack”) and survival periods often matter more than the length of the list. Review wording with a licensed advisor — we stop at the education line.

Educational estimates only — not insurance, tax, or legal advice. No products sold. Figures use verified government constants where cited and your inputs/assumptions elsewhere. Confirm against your policy wording and a licensed advisor or broker. Robert is a mascot, not a licensed insurance advisor.

Frequently asked questions

How much critical illness coverage do I need?
CI is usually sized to buy time and options, not to replace income for life. A common frame is one to two years of household expenses, plus any treatment or travel costs your health plan won't cover and a buffer so a partner can take leave. It stacks with — not instead of — disability insurance, which replaces ongoing income. This tool estimates a gap; in the real policy, the covered-condition definitions and survival period matter as much as the amount.
Is a critical illness payout taxed?
A personally owned CI benefit is generally paid tax-free. Corporate-owned CI has its own tax rules — this tool does not model corporate ownership.
CI vs disability insurance — do I need both?
They cover different risks. CI pays a lump sum on diagnosis even if you can still work; disability replaces income when you cannot work, whatever the cause. Many households prioritise disability first, then add CI. We never recommend a product.
What does “covered conditions” really mean?
It is the list of illnesses that trigger a payout, each with a precise medical definition and often a survival period (commonly 30 days). Definitions matter more than the count of conditions on a brochure.
Does it cover recurrence?
Usually a base CI policy pays once and ends. Some riders add recurrence or multiple-event coverage — check the wording with a licensed advisor.
Where is my data stored?
Only in your browser — no account required.

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