The Employees Provident Fund (EPF) proves to be very helpful in meeting the retirement needs of the salaried employee. In the EPF account, 12 percent of the employee’s basic salary is deposited by the employee and 12 percent by the employer. The Employees Provident Fund Organization (EPFO) provides other important facilities besides creating retirement funds in EPF account. These are insurance, loan and pension. Let us tell you that how PF account holders get the benefit of these facilities.
Many PF account holders in the country are not aware that they are getting insurance facility with PF account and they fail to claim it. SEBI Registered Investment Advisor Jitendra Solanki said that PF account holders get insurance under the Employment Deposit Linked Insurance Scheme (EDLI). The employee is not required to apply separately or pay premium for this insurance. 0.5 percent of the employer’s contribution to the EPF account automatically goes to the EDLI.
For your information, let us tell you that in this insurance scheme, the employee gets insurance up to six lakh rupees. In the event of death of the EPF account holder during the service period, a lump sum payment is made to the family, legal heir or nominee of the employee. This payment amount is 30 times of the salary received by the employee in the last 12 months or a maximum of six lakh rupees. To get the insurance amount, the nominee has to fill a form and submit it to the EPFO office.
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