Many salaried employees may not know this, but they already have a life insurance cover — without paying a single extra rupee.
If you are a member of the Employees’ Provident Fund Organisation (EPFO), you are automatically covered under the Employees’ Deposit Linked Insurance (EDLI) scheme.
This scheme provides life insurance coverage of up to ₹7 lakh to your nominee in case of death during service.
And the best part? You don’t pay any separate premium.
What Is the EDLI Scheme?
The EDLI scheme works alongside your EPF and EPS benefits.
It is available to all employees who are active EPF members in establishments registered with EPFO.
Since the employer contributes towards this scheme, employees receive insurance protection at no extra cost.
This makes it especially valuable for private sector workers who may not have separate life insurance policies.
How Much Insurance Cover Do You Get?
The payout under EDLI depends on:
Your last drawn salary
Your provident fund balance
However, the maximum insurance benefit is capped at ₹7 lakh.
Even if you switch jobs, your EDLI coverage continues — as long as your EPF account remains active and there is no long break in contributions.
How to Claim the EDLI Benefit?
If an EPF member passes away during service, the nominee or legal heir must submit Form 5 IF.
The required documents include:
Death certificate
Bank account details
Identity proof
The claim can be submitted through the employer or directly to the EPFO office.
Once the documents are verified, EPFO processes the claim and releases the insurance amount to the nominee.
Why This Benefit Matters
The EDLI scheme is one of the lesser-known benefits available to EPF members.
Yet, it provides crucial financial support to families during difficult times — without employees having to pay anything extra.
For many families, this insurance payout can offer immediate relief and financial stability when it is needed the most.
