Government to Provide Free Health Insurance with Pension Benefits from These Dates, Check Details

Are you also a pensioner? Then there is good news for you. It is very likely that pensioners will be able to get health insurance along with their pension. And now the news is that the movement has started. The Pension Fund Regulatory and Development Authority (PFRDA) recently launched a pilot scheme called NPS Health, which is designed to help NPS subscribers meet medical expenses by using a part of their accumulated retirement funds. According to PFRDA Chairman S. Ramon, three pension fund managers are currently experimenting with products related to this initiative.

Pension will now also come with health insurance!

Currently, this scheme is in the proof-of-concept stage. NPS subscribers above the age of 40 can transfer up to 30 percent of their total contribution from their general scheme account to a health account, from which money can be withdrawn only for medical expenses. “We are doing experiments. One experiment is being conducted by ICICI Pension Fund, another by Axis and one by Tata Pension Fund.”

Rising healthcare costs and inadequate health insurance coverage are major challenges for many Indians. Raman believes that the NPS health pension scheme can help bridge this gap. “Many people do not buy health insurance at a young age. After reaching the age of 50, it becomes difficult to get coverage. So, we want them to save money in a medical pension scheme, where the savings are dedicated only for medical expenses,” said the PFRDA chairman.

The common man to benefit

In recent years, the national pension system has undergone significant changes — from the opportunity to invest in gold and silver ETFs to significantly reducing the mandatory annual income requirement. The regulator is now testing guaranteed return products for retirees and trying to make the NPS more attractive by opening up new investment avenues for pension fund managers. The chairman said, “In many international jurisdictions, pension funds are allowed to invest in real estate. In India, this is not allowed because of the development risks. We are bringing in experts from home and abroad to assess the potential regulatory framework.”