PF Account: A free life insurance cover of Rs 7 lakh is hidden in your PF account, but most people are unaware of this..

EPFO Insurance Rules: If you are employed and have a PF account, this news is very important for you. Most of us consider PF only as retirement savings. Many associate it with a pension. But a PF account has a hidden benefit that most people are unaware of: free life insurance up to Rs 7 lakh.

Yes, the EPFO ​​provides this insurance to every member at no additional cost. This benefit is automatically available, whether you are aware of it or not.

Life cover is automatically available with your PF account.
This benefit from the EPFO ​​is provided under the Employee Deposit Linked Insurance Scheme (EDLI). This means that if you deposit money in the EPF, you are automatically covered by this insurance.

EDLI is considered the third-largest benefit after EPF and EPS because it is available without any premium. There is no need to fill out any form or register separately.

The employee doesn't have to pay a single rupee.
The biggest advantage of this insurance is that the employee doesn't have to pay any premiums. The company bears the entire expense. Every month, the company contributes 0.5 percent of the employee's salary (basic plus DA) to the EDLI scheme. This deduction is not made from the employee's salary. Therefore, all employees with PF can avail themselves of this insurance without any expense.

Back-up assistance to the family in case of an employee's death while on duty
This insurance is useful only when the employee dies while on duty.

Whether the incident occurs in the office, at home, or on leave, the insurance cover remains active in all situations. In such cases, financial assistance is provided to the employee's family or nominee to provide support during difficult times.

How much insurance cover is available?

The amount received under EDLI is determined in two parts:

Minimum cover: Rs 2.5 lakh
Maximum cover: Rs 7 lakh
The insurance amount is determined based on the employee's salary and PF account balance for the last 12 months. This means that the more stable the salary and PF balance, the higher the insurance cover.

Most people are unaware of this facility, although it is a vital security cover for employed people. Therefore, if anyone in your family deposits PF money, be sure to share this information with them.

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