WealthPillar · Free calculator
Critical illness insurance calculator
Critical illness insurance pays a lump sum if you are diagnosed with a covered condition, such as cancer, a heart attack or a stroke, and survive the waiting period in the policy. A sensible amount covers your household costs while you recover, the treatment and care costs that health plans do not pay, and any income your partner loses while caring for you. Work out your number below.
How much critical illness cover do you need?
Example figures are filled in. Replace them with your own.
Your estimate
General education only, not advice. Coverage depends on underwriting. WealthPillar is paid by insurer commission.
How this critical illness calculator works
- Living costs. Your monthly household costs, times the months you want to plan for. Twelve months is a common starting point. Some people plan for 24 if their work is physical or they run their own business.
- Your partner's income. If your partner would cut back their hours to care for you, add the income they would lose each month.
- Costs health plans skip. Drugs not on a provincial or group plan, private care, travel and parking for treatment, and changes to your home.
- Debts. Some people use the lump sum to pay down a line of credit so the monthly bills shrink.
- What you have. Critical illness cover you already hold and savings you would be willing to use.
The payout is yours to spend as you choose, so the calculator treats every need the same way. It does not have to match a doctor's bill.
Critical illness or disability insurance?
They answer different problems. Critical illness pays one lump sum when a covered condition is diagnosed, whether or not you can still work. Disability insurance pays a monthly income if illness or injury stops you working, whatever the cause. A back injury is rarely a critical illness, and a cancer you keep working through may never be a disability claim. Many people look at both. The disability calculator works out the monthly side, and the critical illness and disability page explains how the two fit together.
What this estimate leaves out
- Which illnesses are covered. Each insurer lists the conditions it covers and defines each one. Read the definitions, not just the number of conditions.
- Waiting periods. Most policies pay only if you survive a set period after diagnosis, often 30 days.
- Underwriting. Your health history decides whether cover is offered, at what price, and with any exclusions.
Common questions
How much critical illness insurance do I need?
Enough to cover your household costs for the recovery period you plan for, plus care costs your health plans do not pay and any income your partner would lose, minus the cover and savings you already have. For many households that works out between one and two years of after-tax income.
Is a critical illness payout taxable in Canada?
In general a benefit from a personal policy you pay for yourself is not treated as taxable income. Policies owned by a corporation and group plans can be treated differently, so check with your accountant before you rely on it.
Do I need critical illness cover if I have group benefits at work?
Group plans often include health, dental and long-term disability, but many do not include critical illness at all, or include a small amount. Check your benefits booklet. If you are self-employed or run a corporation, you may have no group cover.
Related calculators
See the life insurance needs and disability calculators, or all of them on the calculators page.
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General education only. Not individualized insurance, financial, tax or legal advice. Figures use 2026 rates and are estimates. All coverage is subject to underwriting and the terms of the policy. WealthPillar is paid by insurer commission.