The Employees’ Provident Fund Organization (EPFO) has introduced the Employees’ Deposit Linked Insurance Scheme (EDLI), providing crucial insurance coverage to employees contributing to the EPF.
With a focus on safeguarding the financial well-being of employees and their families, this scheme offers significant benefits in the event of an untimely demise.
Key Features of the EDLI Scheme:
Under the EDLI scheme, employees are entitled to a complimentary insurance cover with benefits extending up to Rs 7 lakh.
In the unfortunate event of an employee’s sudden death, the nominee or legal heirs can claim financial assistance through this scheme.
The benefit amount is determined based on the last 12 months’ salary of the employee, with the nominee receiving 30 times the average salary along with a 20 percent bonus.
Eligibility and Claim Process:
To qualify for the EDLI scheme, individuals must have continuous employment for at least 12 months.
The beneficiary can claim a minimum of Rs 2.5 lakh and a maximum of Rs 7 lakh from the insurance coverage of the account holder.
It’s crucial to differentiate the EDLI scheme from PF insurance, as the former provides coverage regardless of whether the account holder dies during employment or after retirement.
Importance and Financial Security:
The EDLI scheme serves as a vital safety net, offering financial security to employees and their families in unexpected circumstances.
By understanding the provisions and eligibility criteria of the plan, individuals can effectively secure the financial future of their loved ones.
