Most salaried employees know that their EPF account helps them save money for retirement.
However, very few people are aware that EPFO also provides free life insurance coverage of up to ₹7 lakh.
If your Provident Fund (PF) is being deducted and you are an EPFO member, you may already be covered under this benefit without paying any extra money.
This insurance is provided through the Employees’ Deposit Linked Insurance (EDLI) Scheme and can offer crucial financial support to your family during difficult times.
What Is The EDLI Scheme?
The Employees’ Deposit Linked Insurance (EDLI) Scheme was introduced by EPFO in 1976 to provide financial security to the families of employees working in the organized sector.
The biggest advantage of this scheme is that employees do not have to pay any premium.
The entire cost of the insurance is borne by the employer.
Under the scheme, the employer contributes 0.50% of the employee’s Basic Salary and Dearness Allowance (DA) towards the insurance cover.
If an EPFO member dies while in service, the nominee can receive an insurance amount ranging from ₹2.5 lakh to ₹7 lakh, depending on eligibility and applicable rules.
Who Can Get The Benefit?
The EDLI scheme is available to EPFO members whose PF accounts remain active.
Employees who have worked continuously for at least 12 months before their death are eligible for the benefit.
Even if an employee changes jobs during this period, the insurance cover continues as long as the PF account remains active.
However, this benefit is available only if the employee passes away while still employed.
How Can Family Members Claim The Insurance Amount?
In the unfortunate event of an employee’s death, the nominee can apply for the insurance claim.
To receive the amount, the nominee must submit Form 5 IF along with important documents such as:
Death certificate of the employee
Succession certificate (if required)
Bank account details
Other supporting documents requested by EPFO
The claim is submitted to the EPFO office for processing.
Why Completing E-Nomination Is Important
Many employees ignore the e-nomination process, but it plays a key role in ensuring that insurance benefits reach the right family member quickly.
EPFO advises all members to complete and regularly update their e-nomination details through the UAN portal.
A valid nomination can help family members receive the claim amount without unnecessary delays or paperwork during an already difficult time.
More Than Just A Retirement Savings Account
Most people think of PF as a retirement savings tool. But the EDLI scheme shows that your EPF account offers much more than that.
With free life insurance coverage of up to ₹7 lakh, it acts as an additional financial safety net for your loved ones.
Knowing about this benefit and keeping your nomination details updated can make a significant difference to your family’s financial security when they need it the most.
