EPFO (Employees Provident Fund Organization) has six crores subscriber and it is a most largest organization in the world. Most of them consider it only a mandatory fund saving tool as their provident fund accumulates in the account under the EPFO. But only few EPFO holders know about Free Life Insurance worth up to Rs.7 lakh which had already entitled.
The EPFO subscribers are covered under FREE LIFE INSURANCE of the Employees Deposit Linked Insurance Scheme (EDLI). As per your last drawn salary, the life cover is decided. In case of the death of the subscriber, a lump-sum payment, in addition to the accumulated PF, is given to the registered nominee also. The nominee registered under the EDLI remains the same as registered in the Employees’ Provident Fund (EPF) Scheme. Those enrolled with the EPFO get automatically enrolled in the EDLI scheme.
A maximum assured benefit of up to Rs. 7 lakh is paid to the nominee or legal heir of an EPF member, if death occurs while in service. The minimum assurance benefit of Rs 2.5 lakh is paid to the nominee if the deceased member was in continuous employment for 12 months prior to his/her death. The benefit is directly credited to the bank account of the nominee or legal heir.