EPF Scheme: In this scheme of EPF, you can take life insurance benefit of up to Rs 7 lakh without paying premium.
On joining EPFO, account holders automatically become eligible and enrolled for it and they do not need to register separately.
EPF Scheme: One of the most trusted schemes to invest for salaried employees, Employees’ Provident Fund (EPF) offers many benefits. EPF offers various schemes to the account holders and one such plan in which you do not even need to pay any premium amount, assures life insurance benefit of Rs 7 lakh.
This scheme of EPFO is called Employees Deposit Linked Insurance Scheme or EDLI . Let us know how it provides assured benefits of up to Rs 7 lakh to EPFO account holders without paying premium?
The EDLI scheme provides a maximum assured insurance benefit of up to Rs 7 lakh to eligible PF account holders. Earlier this amount was Rs 6 lakh, but in April last year it was increased by another Rs one lakh. This assured benefit is given to the legal heir of the account holder if the person dies before retirement.
In addition, a minimum assured benefit of Rs 2.5 lakh is offered in case of death of the employee when they were in continuous service for the last 12 months.
These benefits are free of cost as the account holders do not pay the premium amount to become eligible for the assured life insurance benefits under the EDLI scheme. The premium for this is to be paid by the employer and is 0.50% of the monthly salary of the account holder, subject to a maximum limit of Rs 15,000.
On joining EPFO , account holders automatically become eligible and enrolled for it and they do not need to register separately.
Employees also get the facility of direct bank transfer, as the benefits under the EDLI scheme are directly linked to the bank account of the nominee or legal heir of the account holder. In case of death of the EPFO subscriber, the benefits are directly transferred to the linked account.
