If you have an account with EPFO, then it can be very beneficial for you to know that EPFO provides insurance facility to its account holders absolutely free of cost. Explain that all the members of EPFO are eligible to avail this facility.
In this, account holders get insurance up to Rs 7 lakh. For which they do not need to pay any premium. Let us tell you that you do not have to do anything separately to avail this insurance facility. If an EPFO member dies untimely, then his insurance can be claimed. Let us know what are the rules related to this facility.
Who can claim insurance?
The insurance amount is paid after the death of the EPFO member. Explain that the amount of insurance is claimed by the nominee or his successor after the death of the EPFO member. If the nominee or legal heir can claim for insurance if the EPF employee dies during service. The minimum insurance benefit amount under this scheme is Rs 2.5 lakh. Whereas, the maximum amount of insurance is Rs 7 lakh. The insurance amount is deposited directly into the bank account of the nominee.
How is the insurance amount determined?
The insurance amount is calculated on the basis of the last 12 months’ salary of the deceased EPFO employee. The amount of insurance is 35 times the basic salary received in the last 12 months. At the same time, its maximum limit is 7 lakh rupees. Let us tell you that earlier the maximum limit of insurance was 6 lakh rupees. But now the government has increased it by one lakh rupees. At the same time, under this, a minimum insurance of Rs 2.5 lakh is given.
It is very important to register the name of the nominee
EPFO members must register the name of the nominee in their account. The biggest advantage of having a nominee in the account is that if an account holder dies, his family does not face any difficulty in availing the benefits of EPF, EPS and EDLI schemes. On the other hand, if the name of the nominee is not added in any account, then in such a situation, all the legal heirs of the account holder have to do a lot of paperwork to get the money. Due to this it takes time to get the claim.