Every person wants to have no financial crisis on the family after his death. This has led to an increase in people’s interest in term insurance plans. However, in term insurance, premium is payable for insurance coverage but it is not required for EPFO’s Employee Deposit Linked Insurance (EDLI) scheme. Under this scheme, EPFO provides insurance cover of Rs 7 lakh to the employees. This amount is insured by the family upon the death of an employee while on the job.
What are the conditions: However, there are some necessary conditions for this. For example, a deceased employee is a member of one or more organizations for a continuous period of 12 months before his death. In addition, the claimant must present an employee’s death certificate to obtain the sum insured. At the same time, it is mandatory to provide proof of family or nominee.
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The minimum insurance benefit under the EDLI scheme is Rs 2.5 lakh. At the same time, the maximum sum insured is Rs 7 lakh. The scheme also benefits families of employees who have lost their lives due to coronavirus.
How the calculation is done: The amount of insurance is calculated based on the salary of a deceased EPFO employee for the past 12 months. The sum insured is 35 times the base salary (base salary + DA) received in the last 12 months. Its maximum limit is Rs 7 lakh.