EPFO: Family of deceased EPFO member receives PF fund; know the complete claim process...
How to Claim EPF: The death of a working individual or the sole breadwinner of a family is a deeply tragic event. During such trying times, the bereaved family requires immediate financial assistance alongside emotional support. If the deceased was employed in a private or government organization and contributed to the Provident Fund (PF), the nominee or family members become eligible for benefits through the EPFO, including insurance (EDLI) worth lakhs of rupees, the PF fund, and a lifelong pension. Therefore, it is crucial to know the steps required to claim the insurance amount, PF fund, and pension benefits.
**Obtain the Death Certificate First**
The death certificate is the primary and essential document for initiating any financial claim or legal process. Consequently, following the death of a loved one, one should immediately apply for the death certificate—either online or offline—through the hospital, local municipal corporation, or Gram Panchayat. Subsequently, keep several attested copies of the death certificate safe for EPFO claims, bank account transfers, and life insurance procedures.
**How to Access PF Balance, Insurance, and Pension Benefits from EPFO**
Upon the death of an EPFO member, the nominee or legal heir receives three major financial benefits: the PF fund, free life insurance cover of up to ₹7 lakh, and a lifelong family pension for dependents. The procedures to avail of these benefits are outlined below.
**Full Withdrawal of PF Fund**
The entire accumulated contribution—comprising both the employee's and the employer's shares, along with accrued interest—is disbursed to the nominee or dependents. A claim for this can be filed online or by submitting Form 20.
**Free Life Insurance up to ₹7 Lakh**
Under the EPFO's Employees' Deposit Linked Insurance (EDLI) scheme, if a serving employee passes away, their family is provided a lump-sum insurance amount of up to ₹7,00,000. Filing Form 5IF is mandatory to avail of this benefit.
**Lifetime Family Pension**
Under the Employees' Pension Scheme (EPS) 1995, the deceased's spouse is entitled to a lifetime pension. Additionally, two children in the family receive a monthly pension until they attain the age of 25. Form 10D must be submitted to claim this benefit.
**What Happens to Loans and Credit Cards?**
If the deceased held an active personal loan, home loan, or car loan, the family members need not panic. First, check with the concerned bank or financial company to see if 'loan protection insurance' was obtained at the time the loan was taken. If the loan was insured, the bank will settle the entire debt by claiming the amount from the insurance company, and no recovery will be sought from the family.
People often withdraw money using the deceased's ATM card after their passing; however, this can be considered legally improper. Instead, visit the bank branch with the death certificate, your Aadhaar card, and the passbook. With the assistance of the nominee registered on the bank account, the entire amount can be legally transferred to the nominee's account.
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