NPS Swasthya: A Game Changer Or Gap-Filler
Published by Outlook Money
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that NPS Swasthya is a voluntary account separate from the regular NPS, and suggested it can act as a backup to health insurance or as a health fund for those unable to buy cover.
What Abhishek Kumar said
How is NPS Swasthya different from the regular NPS account?
NPS Swasthya is a voluntary scheme you contribute to, and it is kept separate from what you put into your regular NPS corpus. You choose how much of your contributions to direct into this health account, and that money then earns market-linked returns in the same way as the money in your regular NPS account does.
Is NPS Swasthya a cost-effective way to save for medical costs?
In my view, NPS Swasthya is generally a cost-effective way to set money aside for medical needs. That is because it sits within the NPS ecosystem, where fund management fees are low, and because it also gives access to top-up insurance options that are low in cost.
Should I use NPS Swasthya if I already have health insurance?
If you already have a health insurance policy, you can treat NPS Swasthya as a backup for times when the insurer delays processing a claim for some reason; the money can tide you over until the claim is settled. But if you have no cover and cannot buy one now, because of a health condition or any other reason, NPS Swasthya can serve as your healthcare fund.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on retirement
The article examines NPS Swasthya, a PFRDA pilot that lets subscribers use a separate, voluntary NPS account for medical expenses, with flexible partial withdrawals and full exit for major treatment. It compares it with the regular NPS and health insurance, and asks whether it suits people who already have cover.
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NPS Swasthya: A Game Changer Or Gap-Filler