Employees Deposit Linked Insurance Scheme for EPFO Account Holder: Employees Provident Fund Organisation i.e., EPFO account holders get many facilities. The PF account of the employed people provides savings as well as mufti insurance, pension etc. However, many people are unaware of Mufti Insurance.
PF account holders get Rs 6 lakh as life cover. The special thing is that this insurance cover is absolutely free and the account holder does not have to pay any separate amount.
Under the Employees Deposit Linked Insurance Scheme i.e. EDLI 1976 Rules, every employee provident fund organization subscribers get this cover absolutely free of cost. To get this cover, the nominee can claim the insurance amount after the death of the account holder.
The insurance company demands a death certificate, succession certificate and bank details. For this, you have to submit the insurance cover form with the employer. Please tell that free insurance cover amount will be received only in the case of death of the account holder and that too before retirement. Whether death is in the office or somewhere else. The nominee is free to claim.
All about Pension facility:
Under EPFO Act, 12% of basic salary and DA of the employee go to PF account. At the same time, the company also deposits the same amount in the PF account of the employee.
Of the company’s 12 per cent, 3.67 per cent goes to the employee’s PF account, while the remaining 8.33 per cent goes to the pension scheme. Later this amount is received as pension to the employee.
