Your critical illness plan offers attractive tax benefits. The premium you pay towards it is tax deductible under Section 80(D) of Income Tax Act, 1961.
For senior citizens, the limit is Rs. 20000 per financial year.
Deductions under section 80(D) is available over and above the deductions under section 80(C) that has a limit of Rs. 1 lakh.
In short, the payments you make towards your critical illness plan do not just cover the risk of major diseases for you; it is financial prudent too, allowing you to save a packet on income tax.
Critical Illness Tax Implications: Basics