New Delhi: In recent times, medical expenses have been rising significantly, making it increasingly difficult for low-income individuals to access quality healthcare at good hospitals. However, to ensure that people receive quality medical care, several excellent schemes have been launched, yielding widespread benefits. In light of these escalating medical costs, a new avenue has now been established.
Key Highlights
Max withdrawal
25%
Of total contributions
Min corpus for 1st withdrawal
₹50,000
Must be accumulated first
Critical illness rule
Full withdrawal
If cost >70% of corpus
NPS transfer (age 40+)
Up to 30%
From the existing NPS account
The PFRDA has introduced the ‘NPS Swasthya Pension Scheme.’ Its primary objective is to assist individuals in covering their healthcare expenses using their personal savings. Currently, the government has designed this scheme as a pilot project. It is being implemented within a limited scope under the framework of a ‘Regulatory Sandbox.’
Understanding the NPS Swasthya Scheme
This scheme is linked to the government’s National Pension System (NPS) and is expected to prove highly beneficial. Under this scheme, you can utilise a portion of your pension savings to cover future medical expenses—such as hospital bills or doctors’ fees—when the need arises. The aim is to facilitate the management of healthcare costs simply and securely. Essentially, your own savings will serve to fund your medical treatment.
Who Can Invest?
Any citizen of India is eligible to enrol in the NPS Swasthya Scheme. It operates as a common scheme within the broader NPS framework. A key prerequisite for joining this scheme is the possession of an existing NPS account.
Key Highlights and Important Details
This is classified as a contributory scheme, meaning you can deposit funds into it yourself. There is no prescribed upper limit on the investment amount; you are free to make contributions according to your own convenience and capacity. The deposited funds will be invested in accordance with established regulations. Regarding withdrawals for medical expenses, you have the option to withdraw a certain amount whenever a medical necessity arises.
You are permitted to withdraw a maximum of 25 per cent of your total contributions. There is no minimum waiting period required for such withdrawals. However, to initiate the first withdrawal, it is mandatory to have a minimum accumulated corpus of ₹50,000.
In cases of critical illness, the facility to withdraw the entire accumulated corpus may be available. Specifically, if the one-time expenditure incurred for treating a major illness exceeds 70 per cent of your total accumulated fund, you are entitled to withdraw the entire balance from the scheme.
Find Out How Payments Will Be Processed
The funds will be paid directly to the hospital or the concerned agency. Any remaining balance after the treatment is completed will be credited back to your NPS account. Individuals aged 40 and above are eligible to transfer up to 30 per cent of the funds from their NPS account into this scheme.
💬 Comments
0