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Now EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh!!

February 26, 2018by Basavaraj Tonagatti

Now EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh!! Earlier the limit of minimum insurance benefit was Rs.1.5 lakh and the maximum was Rs.6 lakh. Many of the salaried unaware this part that their EPF also offers insurance coverage of up to Rs.6 lakh.

Earlier I wrote a post when EPFO increased the maximum limit from the existing Rs.3.6 lakh to Rs.6 lakh (Refer the post “Do you know EPF offers up to Rs.6 lakh of Life Insurance (EDLI)?“.

Now as I said above, EPFO increased the minimum limit also from the existing Rs.1.5 lakh to Rs.2.5 lakh.

This Life Insurance which offered by EPFO is called EDLI (Employees’ Deposit Linked Insurance Scheme).

Features of EDLI or Employee Deposit Linked Insurance

  • All employees who are the members of EPF are automatically eligible for EDLI.
  • This Life Insurance coverage is irrespective of death occurred during working hours or non-working hours.
  • It covers the death of an employee, irrespective of a cause of death.
  • There are no exclusions under this plan.
  • Coverage and premium will be purely based on your salary but not on age or gender.
  • Earlier there was a condition that one must complete a year to be eligible for EDLI. Recently they removed such restrictions. Hence, you are covered from the first day itself.
  • There is no maximum age set for this insurance.
  • You no need to add nominee separately. Your EPF nomination itself considered for this scheme.

Who will pay the premium for EDLI or Employees Deposit Linked Insurance Scheme?

To understand about this, let us go deeper and see how you and the employer EPF contribution split. I tried to show the same in below image for your easy understanding.

EDLI EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh

From the above image, you noticed that the premium and management charges will be payable by your employer. But do note that the maximum limit set for this premium payment is 0.5% of Rs.15,000 (Whatever may be your actual EPF contribution from an employer or whatever may be your salary).

Note:-Salary for this purpose is Basic+DA only.

EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh

Under new changes, now EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh. As I pointed above, the employee will not contribute to EDLI. Only your employer will contribute to it. It is 0.5% of Rs.15,000 or Rs.75 per month to the maximum (based on your actual Basic+DA). The maximum amount payable by the employer is Rs.75. Refer the below image in that regard of notification.

EPF offers Life Insurance of Rs.2.5 lakh to Rs.6 lakh

How is EDLI calculated?

The average monthly salary (Basic+DA) drawn (subject to a maximum of Rs 15,000), during the last 12 months preceding the month in which the employee dies, is first multiplied by 30 times. This is added to 50% of the average balance in the account of the deceased in the provident fund during the preceding 12 months or during the period of his membership, whichever is less.

The minimum payable will now be Rs 2.5 lakh while the maximum will be Rs 6 lakh.

Let us assume that Mr.A’s salary (Basic+DA) at the time of death is Rs.10,000. Then assume his last 12 months average salary was Rs.10,000. Then we have to multiply this by 30. This will be Rs.3,00,000.

Now we have to add 50% of the average balance in the account of Mr.A during the preceding 12 months. Assume his EPF balance of last 12 months is Rs.1 lakh. Then 50% of this is Rs.50,000.

So in total, he will receive Rs.3,00,000+Rs.50,000=Rs.3,50,000.

Hope this is the good news for those who are the member of EPF.

Category: EPF and PPF

About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

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Reader Interactions

Comments

  1. lakshmi

    October 7, 2020 at 2:33 PM

    SIR, GOOD AFTER NOON
    My brother had expired on 06.09.2019
    dept.joined in (01.05.2015
    salary received Rs.20598
    how to calculate receving amount
    please
    which amount received by hand please help me sir

    Reply
    • Basavaraj Tonagatti

      October 7, 2020 at 7:22 PM

      Dear Lakshmi,
      Please take a pain to read the above post.

      Reply
  2. Deepthi

    January 29, 2020 at 7:42 PM

    Hi basavaraj,
    My brother had expired recently in service ( 9 months doing job) , only he have 9 months PF and basic salary is 15000/
    recently We got EDLI amount just 8000 rs . Actually We supposed to get 30 *15000 =450000 right.
    Could you please help me to understand how they calculated.

    Reply
    • Basavaraj Tonagatti

      January 31, 2020 at 7:20 PM

      Dear Deepthi,
      Refer above post properly.

      Reply
    • SHYAM

      June 9, 2020 at 1:32 PM

      Sir, Is this EDIL scheme applicable to post retiree ? If yes, what is time limit of filing Insurance claim by the legal heir after the retiree’s death. All other ‘after retirement dues’ settled.

      Reply
      • Basavaraj Tonagatti

        June 10, 2020 at 6:38 AM

        Dear Shyam,
        It is for those who are working but not for retirees.

        Reply
    • lakshmi

      October 7, 2020 at 2:29 PM

      SIR, GOOD AFTER NOON
      My brother had expired recently in service (01.05.2015
      salary received Rs.20598
      who to calculate receving amount
      please

      Reply
      • Basavaraj Tonagatti

        October 7, 2020 at 2:30 PM

        Dear Lakshmi,
        Please refer the above post.

        Reply
  3. P subramanian

    November 5, 2019 at 2:19 PM

    Is it mandatory for the employer to pay the insurance premium. How can we know ?

    Reply
    • Basavaraj Tonagatti

      November 5, 2019 at 10:24 PM

      Dear Subramanian,
      Yes, it is part of their EPF contribution.

      Reply
  4. Hemant Bagaria

    October 26, 2019 at 6:52 PM

    Sir my friend was working in canara bank he expired on Feb 2016 can his family claim the life insurance policy of epfo

    Reply
    • Basavaraj Tonagatti

      October 30, 2019 at 6:37 PM

      Dear Hemant,
      Yes, if Canara Bank providing EPF facility.

      Reply
  5. devendra singh

    October 24, 2019 at 10:47 AM

    Dear Sir,
    is this EDLI is applicable from a year 2008 or after that

    Reply
    • Basavaraj Tonagatti

      October 24, 2019 at 5:41 PM

      Devendra,
      EDLI was there even before 2008 also.

      Reply
  6. raghu

    September 26, 2019 at 8:57 AM

    Hi Sir,
    My cousin brother suicide attempted due to some personal reasons, now he is working regularly on the his job. now can u explain claim eligibility.

    Reply
    • Basavaraj Tonagatti

      September 26, 2019 at 5:34 PM

      Dear Raghu,
      Attempt will not be covered.

      Reply
  7. Nagaraju

    September 12, 2019 at 11:16 AM

    Hi sir
    My father was worked June 2012 to April 2018,
    After join another company on may 2018 and he passed away October 2018 . How much money expect to the edli amount.

    Reply
    • Basavaraj Tonagatti

      September 12, 2019 at 8:01 PM

      Dear Nagaraju,
      Refer the above post properly or approach the EPFO.

      Reply
  8. R Pratap kumar

    August 5, 2019 at 5:38 PM

    Sir mere bade Bhai accident me death ho gyi thi 16/03/2019 ko
    Unki salry 11000 thi isme kya benifit milsakt he or kitna milega

    Reply
    • Basavaraj Tonagatti

      August 5, 2019 at 7:49 PM

      Dear Pratap,
      Hard to say. Hence, better to approach the regional EPFO.

      Reply
  9. VIJETA SADAFAL

    August 5, 2019 at 3:50 PM

    how to apply ?my employees passed away in august-19 kindly revert how documentation process will submitted in EPFO For EDLE

    Reply
    • Basavaraj Tonagatti

      August 5, 2019 at 5:37 PM

      Dear Vijeta,
      Approach the regional EPFO.

      Reply
  10. Shubham

    July 20, 2019 at 9:23 AM

    Dear sir my father passed away 05/2019the cause of heart attack on the leave of esi hospital .he was on duty. Is nomni eligible for EDLI…

    Reply
    • Basavaraj Tonagatti

      July 22, 2019 at 9:07 AM

      Dear Shubham,
      Yes.

      Reply
  11. Devesh

    June 21, 2019 at 9:09 PM

    Hii

    My father was died after retirement but he didn’t withdrawn his pf so can we claim 4 insurance

    Reply
    • Basavaraj Tonagatti

      June 23, 2019 at 6:22 PM

      Dear Devesh,
      Sadly NO.

      Reply
  12. Rk

    May 19, 2019 at 7:39 AM

    Hi sir your information is really help full. My friend passed way in a accident in Jan 2019. he is a private employe has a total experience of 7+years.
    He has shifted his organisation 3months before his death and he has 1month gap bw his previous and current employment. In this case will he be considered as less than 12 months or 7 years.

    Reply
    • Basavaraj Tonagatti

      May 20, 2019 at 9:12 AM

      Dear RK,
      If the same EPF was also used in second employment, then the total period is 1st and 2nd employment.

      Reply
  13. ASHOK DAS

    April 25, 2019 at 5:06 PM

    Sir, One of my colleague had died (suicide) last year in March 2018 after one week of his resignation. Will his family member is eligible for applying EDLI.

    Reply
    • Basavaraj Tonagatti

      April 25, 2019 at 6:56 PM

      Dear Ashok,
      Sadly NO.

      Reply
  14. Arun

    February 26, 2019 at 1:42 AM

    Hi sir I’m Arun my brother had attempted suitable during his service period due to personal issues can my parents apply through this scheme?

    Reply
    • Basavaraj Tonagatti

      February 26, 2019 at 7:01 AM

      Dear Arun,
      If the said employee died during service period, then yes his parents can apply for EDLI.

      Reply
  15. jas gandhi

    November 28, 2018 at 9:09 PM

    Hi Mr.Basavraj

    Earlier I too was of the opinion that the “minimum 12 months service” condition for EDLI had been removed and the minimum assured amount will be 2.5 lacs..

    But very recently I have come across a case where employee had worked for 8-9 months and expired. His nominee just got around Rs. 10000/-

    I spoke with EPFO officials and they said that the 12 months criteria still exists..

    Sad but true..

    Reply
    • Basavaraj Tonagatti

      November 29, 2018 at 9:29 AM

      Dear Jas,
      But I wrote this post based on EPFO Notifications.

      Reply
  16. Prasad v

    November 22, 2018 at 2:23 PM

    Hi sir, am Mr.prasad from Bangalore. Am an private employee. I was not aware of ilfe insurance of epfo. Thanks for your post.

    Can u tell me as a private employee, what are the hidden insurance are there, it helps me to find out and make document.

    So that it helps my family.

    Thanks

    Reply
    • Basavaraj Tonagatti

      November 23, 2018 at 6:15 AM

      Dear Prasad,
      There are no such hidden insurance. If your employer providing certain insurance facilities like Life, Health and Accidental, then such are disclosed to you by your employer.

      Reply
  17. Arun

    October 8, 2018 at 8:12 PM

    if someone left my company but still did not withdraw PF. will someone eligible for insurance in future.

    Reply
    • Basavaraj Tonagatti

      October 8, 2018 at 9:24 PM

      Dear Arun,
      NO.

      Reply
  18. JAYACHANDRA

    September 17, 2018 at 3:55 PM

    Dear Sir,

    My brother Expire in 2016 during Road Accident while he going to my native , I do not withdrawal PF till date, Is that eligible for Life insurance scheme under EPF ? He was working employee during that period.

    Reply
    • Basavaraj Tonagatti

      September 18, 2018 at 12:55 PM

      Dear Jayachandra,
      YES.

      Reply
  19. ketan kamoya

    April 22, 2018 at 5:28 PM

    Dear Sir,

    My brother Expire in 2016 during Road Accident while he going to marriage function , I do not withdrawal PF till date, Is that eligible for Life insurance scheme under EPF ? He was working employee during that period.

    Reply
    • Basavaraj Tonagatti

      April 23, 2018 at 9:31 AM

      Ketan-Yes.

      Reply
  20. Dhruv Thakkar

    April 18, 2018 at 10:27 PM

    Hi, my father expired in Mar’07 while working in private firm and his PF was also getting deducted. Is my mother eligible to get this amount?

    Reply
    • Basavaraj Tonagatti

      April 19, 2018 at 7:34 AM

      Dhruv-Yes.

      Reply
  21. Surya Pratap Singh

    April 12, 2018 at 4:45 PM

    Sir,
    My own Brother’s death case..I applied form no. 5If, 10D& 20.
    My brother’s basic salary was only 600rs.He was working in Company last two years. So i got only this much amount EDLI 167000rs & 22365(PF Balance). Sir according to new scheme we are expecting more. what’s your review about EDLI amount??

    Reply
    • Surya Pratap Singh

      April 12, 2018 at 7:02 PM

      Sorry sir actually basic is 5438rs per month…so please calculate expecting the EDLI amount approx..

      Reply
      • Basavaraj Tonagatti

        April 12, 2018 at 10:02 PM

        Surya-Hard for me to calculate for each individual. Refer above post to calculate on your own.

        Reply
        • Surya Pratap Singh

          April 13, 2018 at 4:11 PM

          Sir, we calculated it’s around EDLI Amount is 1 Lakh 67 thousand something.But along this.. is it any bonus amount of 1 Lakh 50 thousand in EDLI process…I have to confirm regarding Bonus is or not??

          Reply
          • Basavaraj Tonagatti

            April 13, 2018 at 4:22 PM

            Surya-Yes.

            Reply
    • Basavaraj Tonagatti

      April 12, 2018 at 10:05 PM

      Surya-Please calculate as per above. If you have any issues, then contact the EPFO for the same.

      Reply
  22. Varun

    April 6, 2018 at 3:15 PM

    Is it for only goverment employees or also valid for private companys..

    Reply
    • Basavaraj Tonagatti

      April 6, 2018 at 9:13 PM

      Varun-It is for all.

      Reply
  23. Rajput ravi

    April 1, 2018 at 4:54 PM

    dear sir

    my father wsa joining in ongc in 1992 & expire on 26/11/2011 his basic pay is 21000 rs then i will do a EDLI clame ?

    Reply
    • Basavaraj Tonagatti

      April 1, 2018 at 6:56 PM

      Rajput-If his death occurred during job, then you can claim for EDLI.

      Reply
  24. Durga

    March 29, 2018 at 9:15 PM

    Hi Sir,

    This is Durga from Coimbatore, Tamilnadu. On Jan 28th 2018, My elder brother has been passed away at road accident. I need your guidance on this regard. Please do the needful. I’m waiting for your reply.

    Reply
    • Basavaraj Tonagatti

      March 30, 2018 at 1:15 PM

      Durga-Approach the concerned EPFO and also his employer immediately.

      Reply
  25. Amarendra das

    March 28, 2018 at 9:46 PM

    I want to know more about EDLI claim????

    Reply
    • Basavaraj Tonagatti

      March 29, 2018 at 7:51 AM

      Amarendra-All details were explained in above post. If your requirement is related to process, then be in touch with concerned EPFO.

      Reply
  26. Varun

    March 18, 2018 at 1:23 PM

    Hi

    I wanted to understand, do i have to opt for this, or is everyone automatically eligible for life insurance under this, and no paperwork is required

    Reply
    • Basavaraj Tonagatti

      March 18, 2018 at 5:09 PM

      Varun-It is default for all EPF members.

      Reply
  27. Saidkhan

    March 10, 2018 at 6:40 PM

    Dear sir,

    My employer has not updated my gender and aadhar card details with EPFO.
    Now i am not working with them and doing my own business.

    I have left the company in 2016. Now they are reluctant to update it online or offline.

    Please suggest how to correct it and update aadhar card with UAN.

    Reply
    • Basavaraj Tonagatti

      March 10, 2018 at 7:46 PM

      Saidkhan-Try to visit the concerned EPFO and update.

      Reply
  28. brunda

    March 7, 2018 at 8:45 PM

    Dear Sir

    This is Brunda, My father’s Average salary is 12217/-

    how much amount can i expect

    Pl reply me

    Reply
    • Basavaraj Tonagatti

      March 8, 2018 at 11:16 AM

      Brunda-Refer above post properly for calculation.

      Reply
  29. jsrinu

    March 4, 2018 at 1:33 PM

    Thanks friend very goodness as always

    Reply
  30. HIMANSHU N SARAIYA

    February 27, 2018 at 5:57 PM

    Dear Basavaraj,

    In above EDLI Calculation u have mentioned 120000 * 30 times. In EPFO circular it is mentioned Average not Sum, So if we take average of 10000 of 12 months the figure will come 10000 and should be multiplied by 30.

    EPFO circular states that average monthly drawn of 12 months.

    Please explain if am wrong.

    Reply
    • Basavaraj Tonagatti

      February 27, 2018 at 6:16 PM

      Himanshu-You are right and I am correcting the same.

      Reply
      • HIMANSHU N SARAIYA

        February 28, 2018 at 10:01 AM

        Thanks..

        Reply
  31. Sanket

    February 27, 2018 at 2:03 PM

    Thanks Basu.
    Very informative, as always.

    Reply
    • Basavaraj Tonagatti

      February 27, 2018 at 2:04 PM

      Sanket-PLeasure 🙂

      Reply
  32. Jadhao K T

    February 26, 2018 at 9:00 PM

    Good news for EPF member

    Reply
    • Basavaraj Tonagatti

      February 27, 2018 at 9:13 AM

      Jadhao-Truely.

      Reply
  33. rajk

    February 26, 2018 at 3:54 PM

    Very Beautiful Explanation. Have a Query regarding this insurance applicable if Death occurs with in tenure of service.
    and what if in case for both survival or untimely demise occurs Post retirement settlement & withdrawn of total EPF.

    Reply
    • Basavaraj Tonagatti

      February 26, 2018 at 4:34 PM

      Rajik-Then EDLI will not comes into picture.

      Reply

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