Utility: Employees get free insurance of Rs 7 lakh, do you know this?
Many professional individuals have a provident fund (PF) account, which serves as a savings plan for their future. A part of their salary is deposited into this account along with a 12% contribution from their employer.
The account holder gets both his salary and 12% amount from the Employees Provident Fund Organization (EPFO). Many PF account holders are unaware that they also have insurance coverage up to Rs 7 lakh provided by EPFO.
The Employee Deposit Linked Insurance (EDLI) scheme was launched by EPFO in 1976 to provide insurance benefits to PF account holders. Under this scheme, employees working in private companies get free insurance coverage up to Rs 7 lakh.
The premium contribution for the EDLI scheme is provided by the respective companies. If a PF account holder dies, his nominee can claim this insurance, receiving financial assistance up to a maximum of Rs 7 lakh.
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