EPFO Provides Free Rs 7 Lakh Life Insurance Cover to Eligible EPF Members Without Premium & Medical Test

Many Employees' Provident Fund (EPF) members are unaware that they are automatically covered under a free life insurance scheme called the Employees' Deposit Linked Insurance (EDLI) scheme. Under this benefit, the family of an EPF member can receive financial assistance of up to Rupees 7 lakh if the member dies while still employed.

EPFO Members Get Free Life Insurance Cover of Up to Rs 7 Lakh Under EDLI Scheme

The biggest advantage of the EDLI scheme is that employees do not have to pay any additional premium or undergo any medical examination. The insurance cover is automatically available to eligible EPF members.

EPFO Rs 7 Lakh Insurance; Who Can Get the EDLI Insurance Benefit?

To receive the EDLI benefit, the employee must be an active EPF member. The employer should be regularly depositing EPF contributions, and the employee's Universal Account Number (UAN) should be properly linked.

It is also important for EPF members to keep their nominee details updated, as the insurance amount is paid to the nominee or legal heir after the member's death.

EPF vs EPS vs EDLI: Contribution, Benefits and Key Differences You Should Know

EPF, EPS and EDLI together provide financial security and long-term benefits to salaried employees. Here is how each scheme works:

EPF (Employees' Provident Fund): Employees contribute 12% of their basic salary, while employers contribute 3.67%. This amount builds a retirement corpus for the employee.

EPS (Employees' Pension Scheme): Employees do not contribute to this scheme. The employer contributes 8.33% of the salary, up to a maximum of Rs 1,250 per month. It provides a monthly pension after retirement.

EDLI (Employees' Deposit Linked Insurance Scheme): Employees do not pay any contribution towards EDLI. Employers contribute 0.5%, subject to a maximum of Rs 75 per month. It provides free life insurance protection to eligible EPF members.

How Is the EDLI Insurance Amount Calculated?

The maximum insurance amount under the EDLI scheme is Rupees 7 lakh.

The amount is calculated based on the employee's salary and PF balance. It includes 35 times the average monthly salary (with the salary considered up to Rupees 15,000 per month), which can provide a maximum of Rupees 5.25 lakh.

Apart from this, an additional amount equal to 50% of the average PF balance is added, subject to a maximum limit of Rupees 1.75 lakh. Together, the total benefit can reach Rupees 7 lakh.

The scheme also provides a minimum insurance benefit. Under the revised rules that came into effect on July 18, 2025, if the average PF balance is less than Rupees 50,000, the eligible beneficiary can receive a minimum benefit of Rupees 50,000. For other eligible cases, the minimum protection generally remains Rupees 2.5 lakh.

How to Claim the EDLI Amount?

In case of the EPF member's death, the nominee or legal heir must submit Form 5 IF along with required documents such as the death certificate, identity proof, bank account details and other KYC documents.

The claim can be submitted through the employer or directly to the Employees' Provident Fund Organisation (EPFO). Keeping all documents and nominee details updated can help ensure a quicker and smoother claim process.

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