Most employed people in India are familiar with Employee Provident Fund (EPF) as a retirement or pension benefit.
But there’s another hidden advantage: free life insurance through the Employee Deposit Linked Insurance (EDLI) scheme.
Being an EPF member automatically covers you under EDLI, which is considered the third major benefit alongside EPF and EPS.
No Premium Needed – It’s Fully Paid by the Employer
One of the best things about this insurance is that employees do not pay any premium.
The employer bears the full cost, making it completely free for workers.
Every month, the company contributes 0.5% of your basic salary plus dearness allowance (DA) to the scheme.
This is deducted directly by the employer, without affecting your salary, which makes it a highly valuable benefit for employees.
Who Is Covered and When
The insurance applies only while you are employed.
It is active regardless of whether you are at work, at home, or on leave.
If the unfortunate event of death occurs during employment, financial assistance is provided to your family or nominee.
The insurance amount is calculated based on your average salary over the last 12 months and your PF balance.
The minimum cover is ₹2.5 lakh, and the maximum is ₹7 lakh.
Who Can Benefit
The EDLI scheme benefits all employees with a PF account, whether they are permanent or on contract.
As soon as your PF account is active, you automatically become part of the scheme.
This facility is available across almost all industries in India, providing financial security to millions of families.
This free life insurance is one of the most overlooked advantages of having an EPF account.
Employees can rest assured knowing that their families have financial protection in case of emergencies.
