New Delhi | Jagran Business Desk: The Employee Provident Fund Organization, EPFO is a trusted organization for salaried employees which also comes with several benefits. One such benefit of EPFO members is that they are entitled to a free life insurance cover worth Rs 7 lakh under the retirement fund body’s Employees’ Deposit Linked Insurance Scheme (EDLI).
EPFO account holders can avail of Rs 7 lakh insurance, without having to pay any amount as a premium. The insurance is valid for the nominee or the legal account holder of EPFO, active members of the organization get up to Rs 7 lakh insurance cover in case of demise of the account holder during active service.
According to the EPFO, There is no premium or other formalities involved to avail the facility also there is no exclusion and the insurance cover is based on the salary of the beneficiary during the last 12 months prior to demise. It must be noted that the employer pays 12% out of which 8.33% is diverted to Pension Fund. An employer also pays 0.5% of pay in EDLI Scheme.
Know more about EPFO-EDLI Scheme here:
Maximum assured benefits: Under this, the user or the nominee can avail benefit up to Rs 7 lakh in case of death of an EPF member in service. Also, earlier in April 2021, the maximum offered sum was Rs 6 lakh which was increased to Rs 7 lakh.
Minimum assured benefit: The minimum assured benefit under this, for user and nominee is Rs 2.5 lakh under the ELDI 1976. Sum assured is based on salary during the 12 months prior to the death.
Free benefits: Under this, users do not require to pay a premium to avail of benefits under the EDLI scheme. It is the employer who pays the premium, which amounts to 0.50 percent of the monthly wages with a ceiling of ₹15,000.
Auto-enrolment: EPFO account holders do not need to register separately to avail themselves of the EDLI scheme. Instead, they automatically become eligible for it upon becoming members or subscribers of the EPFO.
Direct Bank Transfer: Under this plan, benefits are linked directly to the nominee’s bank account or that of the employee’s legal heir. In case of the EPF account holder’s demise, these are transferred directly to the linked bank account.
Posted By: Ashita Singh