The Employee Provident Fund offers a variety of advantages in addition to being a reliable investing option for paid workers. One such perk is EPFO account holders’ access to a premium-free insurance plan. Provident fund account holders are entitled for guaranteed life insurance coverage of up to Rs 7 lakh without having to pay any premiums under the Employees’ Deposit Linked Insurance or EDLI plan, which was established in 1976.
Every PF account user has access to this service provided by the Employees’ Provident Fund Organisation (EPFO). The advantages provided by the EDLI programme are not restricted to insurance benefits, but also include a variety of additional perks. EPFO recently posted a video on Twitter demonstrating the advantages of the EDLI-linked insurance system.
Maximum Insurance Benefits Assured
In the case of the death of an EPF member in service, the legal successor or nominee of the PF account holder would be awarded benefits of up to Rs 7 lakh. From April 2021, the benefit ceiling has been raised from Rs 6 lakh to Rs 7 lakh.
Under the EDLI programme of 1976, the minimum guaranteed payout is Rs 2.5 lakh if the person was in continuous employment for at least 12 months previous to their death.
Benefits Of Up To Rs 7 Lakh Are Provided For Free.
Employees do not have to pay a fee to benefit from the insurance plan, and EPF/PF account holders are covered for free. The employer pays the payment for this insurance policy, which is 0.50 per cent of the monthly salary up to a maximum of Rs 15,000 per month.
Auto-Enrollment For Those With A PF or EPF Account
EPFO members do not need to enrol in this programme separately. Members who join EPFO or subscribe to the EDLI plan are eligible for EDLI benefits.
Bank Wire Transfer
The advantages of the EDLI programme are directly connected to the nominee’s or employee’s legal heir’s bank account. The rewards will be promptly paid to this bank account in the event of the EPf account holder’s death.
To get claims for the scheme’s benefits, the nominee or legal successor must complete and submit Form 51F to the EPFO. Please visit the EPFO website for further information about the programme.