For payment of LIC premium from EPF account, Form 14 needs to be submitted to EPFO and the amount in EPF account at the time of submission should be equal to LIC premium for at least two years
The world’s largest social security organization EPFO or Employees’ Provident Fund Organization is responsible for regulation and management of provident fund, pension and compulsory life insurance in India. But the new thing for you is that EPFO members can now deposit the premium of Life Insurance Corporation of India i.e. LIC from their EPF account. Livemint has given this information in one of its reports.
Form 14 to be submitted in EPFO
According to tax and investment experts, for payment of LIC premium from EPF account, Form 14 needs to be submitted to EPFO and the amount in your EPF account at the time of submission of this form is at least two years of your LIC. should be equal to the premium.
On the convenience of payment of LIC premium from EPF account, Pankaj Mathpal, Founder and Managing Director, Optima Money Managers said, “An EPFO member will be required to make a one-time payment of LIC premium from Provident Fund (PF) on submission of Form 14 in EPFO. facility is provided.” He said that this facility can be availed for depositing LIC premium at the time of purchase of LIC policy or after that.
EPF account and LIC policy will have to be linked
In this regard, Kartik Jhaveri, Direct-Investment, Transcend Capital, said, “To avail this facility, one has to submit this form and allow both LIC and EPFO to link LIC policy and EPF account. However, it should be noted that this facility of EPFO is available only on payment of LIC premium. It cannot be used for payment of premium of any other insurance company.
This facility is a gift in the Covid-19 crisis
Mumbai-based tax and investment expert Balwant Jain described this facility as a boon in the times of financial crisis, saying, “This facility is like a gift to the people who are facing financial stress during the current Kovid-19 crisis.” Jain said that both LIC and EPF are important for a professional, but this facility should be used only in financial crisis.
