Under the Employee Deposit Linked Insurance Scheme, EPFO provides free life insurance up to Rs 7 lakh to its subscribers. In this scheme, the premium is paid by the company instead of the employee.
If you are a salaried person and EPFO member, then you can avail the facility of free life insurance up to Rs 7 lakh. EPFO provides the facility of Employee Deposit Linked Insurance Scheme 1976 life insurance to all its subscribers. Employees of private companies also get the benefit of this facility.
The amount was increased in April
The Central Government has increased the insurance amount given under the EDLI Scheme. Earlier, the maximum amount of insurance cover in this was Rs 6 lakh, which has been increased to Rs 7 lakh. The Ministry of Labor and Employment had issued a notification on April 28 to increase it to Rs 7 lakh and the increased limit is applicable from that date.
It is beneficial in these circumstances
Under these schemes, the employee has to make his nominee. In case of death of the employee due to any reason, the nominee gets the sum insured. Under the changes in the rules, now this insurance cover is also available to the family of an employee who has worked in more than one company a year before the death. The payment in this scheme is a lump sum.
The employee does not have to pay any amount or premium to avail this facility. If the employee has not made his nominee, then in such a situation the insurance coverage is available to the spouse, unmarried daughter or minor child of the deceased.
The company pays the insurance premium of the scheme
In this scheme, the premium is paid by the company instead of the employee. The employees contribute 12 percent of the basic salary and DA of the employees and 12 percent of the company to the EPFO. At the same time, 0.50 percent of the basic salary and DA premium is deposited by the company in the EDLI scheme. However, in this, the maximum limit of basic salary has been fixed up to Rs 15,000 and on this basis a maximum of Rs 7 lakh is given.
