Among the most trustworthy schemes to invest in for salaried employees, the Employee Provident Fund (EPF) offers a number of benefits. EPF offers various schemes to account holders and one such scheme which does not even require you to pay any premium amount, assures life insurance benefits to the tune of Rs 7 lakh. This scheme from EPFO is called the Employees’ Deposit Linked Insurance scheme or EDLI. Let us know how it offers EPFO account holders assured benefits up to Rs 7 lakh without requiring them to pay premium.
The EDLI scheme offers eligible PF account holders maximum assured insurance benefits of up to Rs 7 lakh. Earlier, this amount was Rs 6 lakh but was increased by another lakh rupees last year in April. This assured benefit is given to the legal heir of the account holder if the person passes away before retirement.
Furthermore, minimum assured benefits of Rs 2.5 lakh are offered in the case of an employee’s demise when they had been in service continuously for the last 12 months before.
These benefits are in essence free as account holders do not pay the premium amount to become eligible for the assured life insurance benefits under EDLI scheme. The premium for this is to be paid by the employer and it is 0.50% of the monthly salary of the account holder, with the maximum cap on Rs 15,000.
Account holders automatically become eligible and enrolled for it when joining EPFO and do not need to make a separate registration. The employees also get the facility of direct bank transfer as the benefits under EDLI scheme are linked directly to the bank account of the nominee or the legal heir of the account holder. The benefits are directly transferred to the linked account in case of the death of the EPFO subscriber.
