New Delhi, Oct. 5 -- A medical emergency can derail financial planning, particularly during retirement, when income may be limited, and healthcare costs can rise sharply. Keeping that in mind, the Pension Fund Regulatory and Development Authority (PFRDA) launched NPS Swasthya on 1 October, NPS Diwas.

It combines a healthcare investment account with a mandatory super top-up health insurance policy.

The proposition is different from simply buying a health insurance policy. Under NPS Swasthya, the subscriber builds a corpus that can be used to meet healthcare expenses, including the deductible under the super top-up policy. This means the subscriber does not have to arrange the deductible entirely from other savings when a claim arises.

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