Usually, when you opt for an insurance, the premium has to be accounted for. However, a special type of insurance is given by the Employees’ Provident Fund Organization (EPFO) to its subscribers. The name of this insurance is Employees Deposit Linked Insurance (EDLI).
No premium is to be paid: The important thing is that the EPFO member does not have to pay any kind of premium for this sum insured. This means to say that this facility is available for free. All EPF members become eligible for insurance once they join EPFO. For this, EPF account holders do not need to do anything extra.
Who will get the sum insured: The sum insured is paid after the death of the EPFO member. The nominee or legal heir can claim for insurance if the EPF employee dies while in service. The minimum sum insured under the scheme is Rs 2.5 lakh. At the same time, the maximum sum insured is Rs 7 lakh. This means that the nominee can take the sum insured up to Rs 7 lakh. The sum assured is deposited directly into the nominee’s bank account.
How it is calculated: The sum insured is calculated on the basis of the salary of the deceased EPFO employee for the last 12 months. The sum assured is 35 times the basic salary received in the last 12 months. Its maximum limit will be Rs 7 lakh. Let us tell you that earlier the maximum limit of insurance was Rs 6 lakh. However, this year the government has increased it by one lakh rupees. At the same time, the minimum sum assured has been increased from Rs 2 lakh to Rs 2.5 lakh.
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