Attention EPFO ​​Subscribers! Do you know you have free life insurance up to Rs 7 lakh?

Employees’ Provident Fund Organization (EPFO) is one of the largest social security organizations in the world in terms of subscribers and volume of financial transactions. More than six crore salaried individuals are registered with EPFO ​​and most of them consider it as an essential fund-saving tool only as provident fund is deposited in their account under EPFO. However, very few EPFO ​​subscribers know that if they are members of EPFO, they are entitled to free life insurance up to Rs 7 lakh.

Yes, you read it right. EPFO members are covered under free life insurance through Employees Deposit Linked Insurance Scheme (EDLI). EDLI cover is provided to salaried employees through a combination of EPF and Employees’ Pension Scheme (EPS). Life cover is decided on the basis of last drawn salary of the employee. In case of death of the member, a lump sum payment is given to the registered nominee in addition to the accumulated PF. The nominee registered under EDLI remains the same as the one registered in Employees’ Provident Fund (EPF) scheme. Individuals enrolled with EPFO ​​automatically get enrolled in the EDLI scheme.

According to EPFO, if death occurs while in service, the nominee or legal heir of the EPF member is given an assured benefit of up to a maximum of Rs 7 lakh. If the deceased member was in continuous employment for 12 months prior to his/her death, an assured benefit of a minimum of Rs 2.5 lakh is given to the nominee. The benefit is directly credited to the bank account of the nominee or legal heir.

Under the EDLI scheme, the minimum contribution by an employer is 0.5 per cent of the employee’s monthly salary, up to a salary limit of Rs 15,000. There should be no employee contribution in this.

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