EDLI Scheme: Free ₹7 Lakh Insurance for EPFO Members
EPFO’s EDLI Scheme Offers Free Insurance Cover Up to ₹7 Lakh: People often think of the Employees’ Provident Fund Organization (EPFO) solely as a retirement fund or security for old age. However, few people are aware that their PF account also comes with a free life insurance cover. This facility is called the Employees’ Deposit Linked Insurance (EDLI) Scheme, under which an employee’s family receives insurance cover of up to ₹7 lakh in case of their untimely death. The employee does not have to pay any additional premium.
Special Features of the Scheme: The sum insured under the EDLI scheme is determined based on the employee’s average salary and dearness allowance (DA) for the previous 12 months. The minimum sum insured is ₹2.5 lakh, while the maximum limit is up to ₹7 lakh. This premium is paid entirely by the employer, meaning the employee does not have to pay a single penny.
If an EPF member dies while employed, their nominee or legal heir can claim this insurance amount. This benefit is available to all organized sector employees whose PF is deducted.
To receive the insurance amount, the nominee must complete and submit Form 5 IF. This form is sent to the EPFO office through the employer. A death certificate and documents proving the nominee’s identity must also be attached. Upon completion of the process, the insurance amount is transferred directly to the nominee’s bank account.
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