In the event of the demise of an investor in NPS Tier 1 before the age of 60 years, the accumulated balance is paid to the nominee or legal heir. They can choose to receive the entire balance as a lump sum or use a portion of it to purchase an annuity for regular income. If the investor has also invested in NPS Tier 2, the balance in the Tier 2 account will be paid as a lump sum.