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.

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 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

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.

Critical Illness Needs

Need breakdown

Frequently asked questions

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