Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
The amount of critical illness insurance is more a question of affordability and that price tag has several factors to it: gender, age, smoking status, etc. But if your family has a predisposition to chronic sickness or disease, you should consider purchasing the maximum critical illness insurance now while you're young and healthy.
The amount that you should buy depends on your financial circumstances. A serious health condition can cost tens of thousands of dollars, so generally having somewhere between $25,000 to $50,000 in coverage is prudent for those without the funds to cover such an event.
That all depends on what you are needing to cover.
The maximum amount I know of is $500k.
First, I would look at covering lost income while you are out. Second, what expenses would you like not to worry about like your mortgage, health insurance premium, credit card and automobile debt, unexpected or uncovered medical bills, are you going to need to fly in someone to watch the kids while you are at the hospital, etc.
Then the tough part, after getting the quote for what you are thinking you need, look at the premium as it relates to your budget. Is this amount affordable? Adjust as necessary. AT least you will know where you stand and how you might need to preserve and spend the benefit.
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The maximum amount I know of is $500k.
First, I would look at covering lost income while you are out. Second, what expenses would you like not to worry about like your mortgage, health insurance premium, credit card and automobile debt, unexpected or uncovered medical bills, are you going to need to fly in someone to watch the kids while you are at the hospital, etc.
Then the tough part, after getting the quote for what you are thinking you need, look at the premium as it relates to your budget. Is this amount affordable? Adjust as necessary. AT least you will know where you stand and how you might need to preserve and spend the benefit.