Many salaried employees don’t know this — but they already have life insurance cover without paying anything extra.
If you are a member of the Employees’ Provident Fund Organisation (EPFO), you are automatically covered under the Employees’ Deposit Linked Insurance (EDLI) scheme.
This scheme provides life insurance coverage of up to ₹7 lakh to your nominee if you pass away during service.
And the best part? You don’t pay any separate premium for it.
What Is the EDLI Scheme?
The Employees’ Deposit Linked Insurance (EDLI) scheme works alongside EPF and EPS benefits.
It is available to all active EPF members working in establishments registered with EPFO.
Here’s how it works:
The employer contributes towards the scheme.
Employees do not have to pay anything extra.
Coverage continues as long as your EPF account remains active.
Even if you change jobs, your EDLI cover continues — provided there is no long break in EPF contributions.
The scheme is especially important for private sector employees, as it provides financial security to families during difficult times.
How Much Insurance Cover Do You Get?
The payout amount depends on:
Your last drawn salary.
Your provident fund balance.
However, the maximum insurance benefit is capped at ₹7 lakh.
This amount is paid to the nominee or legal heir in case of the employee’s death while in service.
How to Claim EDLI Benefits?
To claim the insurance amount, the nominee or legal heir must submit Form 5 IF.
Along with the form, the following documents are required:
Death certificate.
Identity proof.
Bank details of the nominee.
The claim can be submitted through the employer or directly at the EPFO office.
Once verified, EPFO processes the claim and releases the amount.
A Hidden but Powerful Benefit
The EDLI scheme is one of the lesser-known benefits under EPFO.
Many employees focus only on their EPF savings and pension benefits, but this built-in insurance cover can provide crucial financial support to families.
If you are an EPF member, you are already protected — without paying a single rupee extra.
