Critical Illness Recovery Fund Gap Calculator

Estimate how much additional cash cushion you need to maintain living expenses after a critical illness. Enter the essential monthly budget, the number of months you want to fund, and your policy’s lump sum benefit. Add optional savings to see the funding gap, coverage runway, and any surplus remaining for rehab, travel, or household support.

Mortgage or rent, utilities, insurance, treatment travel, and other unavoidable bills per month.
Target recovery runway in months before returning to work or normal income.
Critical illness policy payout or other one-time benefits expected at diagnosis.
Defaults to $0.00 when blank. Include liquid savings, HSA balances, or family support already earmarked.

Informational planning aid. Coordinate with your financial advisor, insurance carrier, and medical team before making coverage decisions.

Examples

  • Example 1 — $6,200.00 expenses, 18 months, $100,000.00 benefit, savings blank ⇒ Recovery fund target: $111,600.00 | Resources available: $100,000.00 | Funding gap: $11,600.00 | Potential surplus: $0.00 | Coverage runway: 16.13 months | Coverage ratio: 89.60%
  • Example 2 — $4,800.00 expenses, 12 months, $75,000.00 benefit, $10,000.00 savings ⇒ Recovery fund target: $57,600.00 | Resources available: $85,000.00 | Funding gap: $0.00 | Potential surplus: $27,400.00 | Coverage runway: 17.71 months | Coverage ratio: 147.57%

FAQ

Should I include a spouse’s income in resources?

Only include income or support you are confident will continue during treatment. Otherwise, leave it out so the gap highlights conservative funding needs.

How many months should I plan for?

Many families target 12–24 months to cover treatment, rehabilitation, and a gradual return to work. Adjust the months input to match your physician’s recovery timeline.

Can I add ongoing disability benefits?

Yes. Convert any monthly disability income into a lump sum by multiplying by the months you want to fund, then add that value to the emergency savings input.

What if my policy pays in instalments?

Sum the instalments expected in the first months of recovery and treat them as part of the insurance benefit so the runway reflects cash that will actually arrive.

Additional Information

  • Critical illness policies often pay a single lump sum—this tool compares that benefit to the recovery runway you select.
  • Monthly expenses should include COBRA premiums, in-home care, nutrition, and transportation so the runway reflects real costs.
  • Optional savings input accommodates HSA balances or cash that can be deployed immediately without penalties.
  • Coverage ratio shows how completely insurance and savings support your recovery target.
  • Surplus output highlights funds that could accelerate debt payoff, experimental therapies, or caregiver relief if not needed for core bills.

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