Do you know that on depositing money in PF, the PF account holder also gets an insurance. It is like a life risk policy and unfortunately after the death of the account holder, this amount is received by their family members.
Many working people collect part of their salary as PF. You get the money deposited as PF at the time of need or at the time of retirement, together with interest. But, do you know that on depositing money in PF, the PF account holder also gets an insurance. It is like a life risk policy and unfortunately after the death of the account holder, this amount is received by their family members.
Actually, under the Employees Deposit Linked Insurance Scheme, this insurance is given to the PF account holders. Under this scheme, an insurance is given to the subscriber, which is found when the employee dies during his job. The lump sum payment of insurance is made to the family members after death, so that their families can get financial help. In such a situation, you know how much money is received in addition to the money deposited in the PF and what is the rule related to it…
How much is the insurance?
In this, the employee gets insurance up to Rs 7 lakh. Earlier this amount was up to Rs 6 lakh, which has been increased to Rs 7 lakh only last year. If an active employee of the EPFO dies during the service period, his nominee is paid a lump sum of up to Rs 7 lakh. Not everyone gets 7 lakh rupees of this money, it is calculated differently.
Actually, the amount received under this insurance is 30 times the monthly salary received in the last 12 months, but it cannot be more than seven lakhs. In this case, you can take advantage of this up to 7 lakhs. Now it has been increased by one lakh rupees.
Under what circumstances do you get this money?
The money is received by the family members on the death of the active employee. Families can get this money after accidental or normal death. For this, many documents have to be submitted and then a claim is obtained.
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Who gets this money?
By the way, after any death, the nominee or legal heir gets this money. For this proper paperwork has to be done.
Let us know that 12 per cent of our money is deposited in EPF and the same is deposited in EPF and pension by our employer. But, apart from this, some contribution is made by the employer. Under this, 0.50 percent contribution is made by the employer in the EDLI scheme, under which an insurance amount of up to Rs 6 lakh is provided to the nominee or family members after the death of the employee.
