If you are a Salaried Employee then you are already eligible for this free life insurance cover which many Salaried Employees are Not Aware of, and the Insurance is called Employee’s Deposit-Linked Insurance(EDLI) scheme. Lets know more about free Employee Deposit Linked Insurance, EDLI Scheme Premium Cost, e-nomination details and other details below.
Free Life Insurance for Salaried
Employee’s Deposit-Linked Insurance (EDLI) scheme this comes under Employee Provident Fund EPF account if you have an active EPF account then you are eligible for a free life insurance cover.
What is Employee Provident Fund?
A retirement benefits scheme under which monthly contributions are made by the employee and employer to the employee’s EPF account. The amount collected, along with interest, is then provided to the employee on retirement.
Employee Deposit Linked Insurance
EDLI Scheme Insurance Coverage Details:
The EDLI Scheme insurance cover ranges from a minimum of Rs 2.5 lakh to a maximum benefit of Rs 7 lakh, this is calculated according to the deceased salary drawn in the last 12 months of employment.
In case of an unfortunate demise of the account holder, the nominee(s) of the EPF account has to fill a form to claim insurance benefits, called Form 5 IF, which has to be submitted to the EPF commissioner’s office with the required documents.
Once this is done, A lump-sum payout is then credited directly to the nominee’s bank account.
Important Thing: One has to be an active contributor to the EPF scheme prior to demise.
EDLI Scheme Premium Cost
All PF Account Holders Pay Zero premium Cost, Because your employer pays it for you at 0.50% of your basic salary, with a ceiling of Rs 15,000.
Make Sure you have filled up Nominee Details in your EPF account.
How to Add Nomination on EPF
If not Visit the official EPFO website https://unifiedportal-mem.epfindia.gov.in/memberinterface/ and fill Nominee details, you need UAN and password before visiting and updating Nominee details.
Once Logged in go to Manage Section and E-Nomination and Add.
e-nomination facility is available with e-sign on EPFO website only.