NPS Swasthya: Get a health cover of ₹30 lakh along with your pension! Open an account with just ₹1,000..
The pension fund regulator, PFRDA, has issued new guidelines for the 'NPS Swasthya' scheme. This scheme is designed to cater to both your retirement savings and your healthcare needs. It mandates the inclusion of a super top-up health insurance cover alongside the pension account. These PFRDA regulations have come into effect immediately.
What is the NPS Swasthya scheme?
The NPS Swasthya scheme consists of two distinct components: an investment account and a super top-up health insurance policy. Under the rules, these two accounts remain separate from each other. Any citizen eligible to join the NPS can avail the benefits of this new scheme. The family floater insurance covers you, your spouse, and two children; however, parents are not included in this standard policy.
What is the required investment?
To open this account, three payments are required: the annual insurance premium, an annual maintenance charge of ₹200, and a minimum investment of ₹1,000 in the NPS Swasthya account. Subsequently, you can continue making contributions starting from as little as ₹10.
Your deposited funds will be invested in accordance with the established rules of the central government's pension scheme. Additionally, the pension fund may levy a charge of up to 0.08% annually on your corpus. Individuals aged 18 to 70 years are eligible to join this plan, and it can be renewed up to the age of 85. Get coverage of up to ₹30 lakh for medical treatment
The policy offers four options based on the deductible amount...
Sum insured of ₹1 lakh with a ₹10,000 deductible
Sum insured of ₹5 lakh with a ₹50,000 deductible
Sum insured of ₹10 lakh with a ₹1 lakh deductible
Family floater insurance of up to ₹30 lakh with a ₹3 lakh deductible
Note that a 'deductible' refers to the initial portion of the claim amount—such as ₹10,000 or ₹50,000—that you must pay out of your own pocket or cover through another policy before the insurance claim is settled. The insurance company covers all subsequent hospital expenses.
Option to withdraw up to 25% for hospital bills
You can withdraw 25% of your total accumulated contribution to cover medical treatment and hospital expenses. There is no waiting period for this, nor is there any limit on the number of withdrawals. A major benefit is that the funds are transferred directly to the hospital or healthcare center rather than to your account.
What happens if the insurance premium is not paid?
If there is insufficient balance in your account at the time of renewal, the pension fund will send you alerts 90, 60, and 30 days in advance. If the premium remains unpaid after the grace period expires, the insurance coverage will cease, and your NPS Swasthya account will be transferred to the standard 'All Citizen Model'.
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