Along with retirement, health is also guaranteed, PFRDA launches NPS Health, know this double benefit of pension and health cover.

News India Live, Digital Desk: Now both the support of old age and illness will be available in one investment. Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new and revolutionary feature to make retirement planning even stronger, which is ‘NPS Health’ (NPS Swasthya) The name has been given. This plan is specially designed for those who not only want regular income (pension) after retirement, but also want protection from huge healthcare expenses in old age.

What is ‘NPS Health’ and how does it work?

Till now the National Pension System (NPS) was only an investment vehicle where you deposited money and on retirement you got a lump sum amount and pension. But ‘NPS Health’ Takes this process one step further. PFRDA, in collaboration with health insurance companies, has designed a model in which a part of the subscriber’s pension corpus can be used directly as health insurance premium.

Its biggest advantage is that after retirement when your income is limited, you will not have to worry about paying heavy medical premiums from your pocket. Your pension plan will manage your medical cover.

Special features of this new initiative

Integrated Health Cover: This scheme links pension funds with health insurance, so that there is no shortage of funds during medical emergencies after retirement.

Easy Premium Payment: The annuity received at the time of maturity can be used directly to purchase a health insurance plan.

Tax Savings: Along with the existing benefits of NPS, health insurance premiums are likely to get additional tax exemption under Section 80D.

Customized Plan: Subscribers will be able to choose from different health cover options as per their need and budget.

Why is this change necessary in retirement planning?

Considering the way medical inflation is increasing in India, pension alone is not enough. It is often seen that a large part of the lump sum amount received after retirement is spent on the treatment of diseases. The aim of this initiative of PFRDA is to ensure that the elderly do not have to depend on anyone else for treatment. This scheme not only provides financial security but also gives assurance of living a respectable life.