There seems to be lots of questions revolving around "how much insurance do I need". Without having a crystal ball, it's impossible to answer. Critical Illness generally encompasses heart attack, stroke, cancer, renal failure, etc. If that happens, you will have extra expense (out-of-pocket expenses, possible travel, etc). But will you also have lost income? Approximately 65% of bankruptcies are due to medical bills. And about 60% of the people that went bankrupt HAD HEALTH INSURANCE!
Critical Illness Insurance pays a lump sum benefit if the insured person is diagnosed with a life threatening illness such as stroke, advanced cancer, Alzheimer's, organ transplant, coronary bypass, and others. Each policy has different criteria, and some pay out reduced amounts for illnesses that are not as advanced. It is difficult to anticipate what benefit is needed before the event would actually occur, and seems more like a personal preference.
The best way to answer this is to first determine what you are wanting to cover. For example, are you looking for paying the mortgage with this benefit and for how long? Do you need to replace income, and for how long? You get the idea. You can get up to $500,000 of coverage generally speaking if you have the budget for it. Neil makes a great point about bankruptcies. Those are accurate statistics.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Long term care is running between $36,000 and $80,000 per year on average these days. The qualifier for critical care is typically when a person is unable to perform 2 or more of the 6 daily basic tasks unaided. So how much critical care insurance do you need? That would depend on how long you might need long term care.
When you purchase LTC insurance as a stand alone policy it can be very expensive. However you can add a LTC rider to many life insurance products at a very reasonable cost and that will avail you of 80% or more of the face benefit of the policy if needed for long term care.
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When you purchase LTC insurance as a stand alone policy it can be very expensive. However you can add a LTC rider to many life insurance products at a very reasonable cost and that will avail you of 80% or more of the face benefit of the policy if needed for long term care.