Salaried employees take note: Get a life insurance cover of ₹7 lakh without spending a single rupee.
EPF Account: An EPF account is not merely a tool for retirement savings; it also offers employees life insurance coverage of up to ₹7 lakh under the EDLI scheme without any additional premium.
EPF Account: Salaried individuals often view their EPF account solely as a means to deposit money, but in reality, it offers much more—including life insurance benefits. Under the Employees’ Provident Fund Organisation’s (EPFO) EDLI scheme, employees receive life insurance coverage of up to ₹7 lakh without paying any extra premium, with the entire cost borne by the employer.
The EPFO recently shared details about this scheme on the social media platform X. If an employee passes away during their tenure, this amount is paid to their nominee or family. This scheme is particularly beneficial for salaried individuals who cannot afford expensive, separate insurance policies.
What is the EDLI scheme?
EDLI is a government insurance scheme linked to the EPF account. If an employee dies while in service, financial assistance is provided to their family or nominee under this scheme. Even if the employee passes away before completing one year of service, a minimum benefit of ₹50,000 is provided. The scheme offers insurance coverage ranging from ₹2.5 lakh to ₹7 lakh. The best part is that the employee does not have to pay a separate premium or complete any additional formalities for this.
Know the benefits of this scheme:
All employees linked to the EPF automatically receive this insurance cover; no separate application is required.
Employees do not have to pay any premium out of their own pockets to avail the benefits of this scheme.
For this scheme, the employer contributes an amount equivalent to 0.5% of the employee’s basic salary and Dearness Allowance (DA). The benefits of this scheme can continue even if there is a gap of up to two months between an old job and a new one.
Claim Process
To file an EDLI claim, Form 5IF must be filled out. Along with this, the death certificate and other necessary documents need to be submitted. Once all documents are verified, the claim is usually settled within 20 to 30 days. Additionally, employees should always keep their nominee details updated in their EPF accounts. Information should be updated immediately in the event of marriage, the birth of a child, or a change in the nominee. If a company has opted for a different group insurance scheme instead of EDLI, the benefits provided under that scheme must be equal to or better than those offered by EDLI.
A Beneficial Scheme
This scheme can provide financial support if an earning family member meets with an unexpected tragedy. Access to insurance coverage of up to ₹7 lakh without paying any additional premium is a significant advantage for salaried individuals. The EPFO aims to ensure that as many employees as possible are aware of this scheme and avail its benefits. Therefore, employees should check with their HR department to confirm whether their company is covered under this scheme. It is also crucial to keep nominee details in the EPF account accurate and up-to-date so that the family does not face any difficulties when the need arises.