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    Critical Illness Insurance Calculator

    Critical Illness Insurance Calculator

    Critical illness insurance pays a lump sum if you're diagnosed with a covered serious condition (e.g., cancer, heart attack, stroke). Use this calculator to estimate premiums and the coverage amount you might need.

    What is critical illness insurance?

    Critical illness insurance is designed to provide financial support after a severe diagnosis. The payout can help cover treatment costs, income loss, and lifestyle adjustments. Policies vary by country and insurer in terms of covered illnesses and definitions.

    How are premiums estimated?

    base_rate Ă— age_factor Ă— smoker_factor Ă— coverage_factor Ă— term_factor

    Example: A non‑smoker aged 35 seeking $50,000 coverage over 20 years may pay a lower monthly premium than a smoker aged 50 with the same coverage and term.

    Who should consider it?

    • Self‑employed individuals who rely on income continuity
    • Families seeking protection from treatment and recovery costs
    • Homeowners with ongoing mortgage and living expenses

    How much coverage do I need?

    A common starting point is 12–24 months of take‑home income plus an estimate of medical and lifestyle adjustment costs. Increase coverage if you have dependents or limited emergency savings.

    Country differences

    Covered illnesses, definitions, exclusions, and tax treatment vary by country. Always review the policy wording for your region and consult a licensed advisor when needed.

    Key benefits

    • Lump‑sum payout you can use for any purpose
    • Helps cover treatment, recovery, and income replacement
    • Complements health and disability insurance

    Commonly covered conditions

    • Major cancers (subject to definitions and exclusions)
    • Heart attack and coronary artery bypass surgery
    • Stroke with lasting neurological impairment
    • Organ transplant and end‑stage organ failure
    • Multiple sclerosis, paralysis, severe burns

    Typical exclusions and limitations

    • Pre‑existing conditions within a look‑back period
    • Waiting periods before benefits apply
    • Specific cancer stage/grade definitions
    • Self‑inflicted injury or criminal activity
    • Non‑disclosure or misrepresentation during application

    Underwriting and waiting periods

    Insurers assess age, health history, lifestyle (e.g., smoking), and coverage amount. Some offers are simplified issue (few questions), others require full medical underwriting. Policies often include a waiting period after issue and condition‑specific survival periods.

    Optional riders and add‑ons

    • Return of premium on expiry or death (where available)
    • Partial payouts for early‑stage conditions
    • Waiver of premium in case of disability
    • Children's critical illness coverage

    What affects your premium?

    • Age and smoking status
    • Coverage amount and policy term
    • Health history and family medical background
    • Riders, benefit structure, and waiting periods

    How to choose a policy

    1. List financial needs: income gap, treatment costs, debts
    2. Pick a coverage level and term that match your goals
    3. Compare definitions, exclusions, and partial benefit rules
    4. Check rider availability and total long‑term cost

    Illustrative examples

    • Young non‑smoker seeking basic protection: prioritize affordability and core conditions
    • Parent with mortgage: consider higher coverage and return‑of‑premium options
    • Self‑employed: emphasize income replacement and shorter waiting periods

    Glossary

    • Waiting period: time after policy starts before coverage begins
    • Survival period: minimum days you must survive after diagnosis to claim
    • Pre‑existing condition: illness/sign/symptom present before policy start

    Frequently asked questions

    Which illnesses are covered?

    Most policies include major cancers, heart attack, stroke, and other severe conditions. Coverage lists and definitions vary by provider and country.

    Is the payout taxed?

    Tax treatment depends on your country and policy structure. Consult local regulations or a licensed advisor.

    How much coverage do I need?

    Many aim for 6–24 months of take‑home income plus expected treatment and lifestyle costs. Our recommendation is a simple starting point.

    Does smoking affect the premium?

    Yes. Smoking status significantly increases critical illness premiums across most insurers.

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