Is PF deducted from your salary? So you are getting free insurance worth ₹7 lakh. Know how your family will get this big benefit and what you should do.
EPF Account Benefits: Every month salary comes, PF is deducted and most people just know that this money will be useful for retirement, but do you know that PF account is not just a savings but also a big security cover for your family? The surprising thing is that a large number of employees get PF deducted every month, but they do not know that if any untoward incident happens to them during the job, the family can get financial assistance of up to Rs 7 lakh. For this the employee does not have to deposit even a single rupee separately. If PF is deducted from your salary, then it is important to tell this information to your family today itself.
Special insurance cover is available with PF
Employees associated with Employees Provident Fund (EPF) also get a special insurance facility. It is called EDLI (Employees’ Deposit Linked Insurance Scheme). Under this scheme, if an employee dies while on the job, his nominee or family is given financial assistance. This amount can range from Rs 2.5 lakh to Rs 7 lakh. The most important thing is that the employee does not have to pay any separate premium for this.
Who gives the money?
Many people think that money will be deducted from the employee’s salary for this insurance also. but it’s not like that. Contribution to this fund is made by the company. This means that not a single extra penny goes out of the employee’s pocket and still he is entitled to this security cover.
Who will get this money?
If an employee’s EPF account is active and he dies while on the job, then the nominee made by him can get this amount. If the nominee is not registered, the legal heirs can claim. This is the reason why it is considered very important to keep the nominee updated in the PF account.
How is the insurance amount decided?
Not everyone gets the same amount. While deciding the amount, information related to the employee’s salary and PF account is taken into consideration. According to the rules, maximum benefit can be up to Rs 7 lakh, while the minimum assistance amount has been kept at Rs 2.5 lakh.
Do one thing regarding PF account today itself
If PF is deducted from your salary, then login to your EPF account and check whether the name of the nominee is entered correctly or not. Many times people do not update the nominee for years and later the family faces difficulty in taking the claim.