NPS Swasthya Launched: Health Cover Inside Your NPS
PFRDA launched NPS Swasthya on 1 October 2026: an NPS account plus super top-up health cover up to ₹30 lakh and medical withdrawals. How it works, who it suits.
By Balaji Anbazhagan
· 4 min read
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On NPS Diwas, 1 October 2026, the Pension Fund Regulatory and Development Authority (PFRDA) launched NPS Swasthya, a new option that puts health insurance and retirement savings in one account. You get a market-linked NPS-style investment account plus a mandatory super top-up health policy for your family, and you can withdraw up to 25% of your contributions for medical bills. Here is how it works, what it costs, and who it suits.
The short answer
- What it is: an individually owned NPS investment account plus a super top-up health insurance policy, bought together.
- Who can join: anyone eligible for NPS aged 18 to 70. The policy can be renewed up to age 85.
- Who is covered: you, your spouse and up to two dependent children, on a family floater. Parents are not covered.
- Cover options: four fixed choices, from ₹1 lakh cover with a ₹10,000 deductible to ₹30 lakh cover with a ₹3 lakh deductible.
- To start: pay the first year’s premium, a ₹200 a year administrator fee (plus tax) and at least ₹1,000 into the investment account.
- Medical withdrawals: up to 25% of your contributions for outpatient (OPD) and hospital (IPD) bills, with no waiting period and no limit on how often.
- It is optional. Your existing NPS account does not change.
The four cover options
A super top-up only pays once your medical bills in a year cross a set amount, called the deductible. NPS Swasthya offers four standard combinations:
| Option | Deductible (you or another policy pay this first) | Super top-up cover |
|---|---|---|
| 1 | ₹10,000 | ₹1 lakh |
| 2 | ₹50,000 | ₹5 lakh |
| 3 | ₹1 lakh | ₹10 lakh |
| 4 | ₹3 lakh | ₹30 lakh |
The policy covers both outpatient and inpatient treatment, including pre- and post-hospitalisation, day-care procedures and AYUSH treatment.
How the money side works
| Part | How it works |
|---|---|
| Investment account | Market-linked, owned by you, regulated by PFRDA |
| First contribution | At least ₹1,000, plus the first year’s premium and the ₹200 administrator fee |
| Later contributions | From ₹10 |
| Medical withdrawals | Up to 25% of your contributions, for OPD and IPD bills |
| The rest | Keeps growing as a retirement corpus |
| Insurance terms and claims | Regulated by IRDAI, not PFRDA |
The idea is that small medical bills below the deductible can be paid from your own NPS Swasthya savings, while the super top-up handles the large ones.
Who it suits, and who it does not
| If you… | NPS Swasthya… |
|---|---|
| Have a basic health policy from work or your own, and want cheap extra cover for big bills | Can fit well. A super top-up on top of a base policy is a cost-effective way to raise your cover. |
| Have no health insurance at all | Needs care. A super top-up alone does not pay small or mid-sized bills. Pick a low deductible, or buy a base policy first. |
| Want cover for your parents | Does not help. Parents are not part of the family floater. Buy them a separate policy. |
| Are a gig or self-employed worker without employer cover | Worth a look, especially options 1 or 2, combined with regular saving. |
| Want only a pension product | Regular NPS is simpler and does not tie you to an insurance premium. |
Before you join
- Check your existing cover. If your employer’s group policy covers ₹3–5 lakh, choose a deductible close to that amount so the two policies fit together.
- Compare the premium for your chosen option with a standalone super top-up policy from an insurer. Bundling is convenient, but it is not automatically cheaper.
- Remember the annual cost is the premium plus the ₹200 administrator fee and taxes. If you join through a bank or agent, the new NPS PoP charges may also apply.
- Medical withdrawals reduce your retirement corpus. Use them for genuine medical bills, and estimate the long-term effect on the NPS calculator.
- Plan for medical inflation. Treatment costs rise faster than general prices; see what today’s ₹10 lakh of cover may be worth in 15 years with the inflation calculator.
Frequently asked questions
When was NPS Swasthya launched? On 1 October 2026, NPS Diwas. PFRDA issued its final guidelines on 18 September 2026.
Is NPS Swasthya compulsory for existing NPS subscribers? No. It is a separate, optional product. Your existing NPS account continues as before.
What is the maximum cover in NPS Swasthya? ₹30 lakh, with a ₹3 lakh deductible. The smallest option is ₹1 lakh of cover with a ₹10,000 deductible.
Can I cover my parents under NPS Swasthya? No. The family floater covers you, your spouse and up to two dependent children only.
How much can I withdraw for medical expenses? Up to 25% of your contributions, for outpatient and inpatient bills, with no waiting period and no limit on the number of withdrawals.
What is the age limit to join? 18 to 70 years, with renewal of the policy allowed up to age 85.
Sources
- Outlook Money, “NPS Sanchay Yatra, NPS Swasthya, And NPS Central Launched: What You Should Know”: outlookmoney.com
- Outlook Money, “NPS Swasthya Unifies Retirement And Healthcare Protection, 8 Key Points To Know”: outlookmoney.com
- Outlook Money, “NPS Swasthya: FM Sitharaman Expected To Launch The Scheme On October 1”: outlookmoney.com
This article is for general information and education, not financial, tax or investment advice. Rules and rates change; check official sources or consult a qualified professional before acting. See our disclaimer.