Advantages of Critical Illness Insurance
Critical Illness insurance offers flexible payment options upon diagnosis, such as the lump-sum payment of sum insured or lump-sum payment plus 10% of sum insured paid each year for the subsequent 5 years.
The critical illness insurance premium is cheap as compared to health insurance. This is because the insurance will only trigger upon the diagnosis of critical ailments which are covered by the policy.
The premium paid for the critical illness insurance policy is tax deductible upto Rs.15000 under section 80D of the Income Tax Act. Also, the payout under the policy will be tax-free.