If you have an account with EPFO then it may be beneficial for you to know that EPFO provides insurance facility absolutely free of cost to its account holders. 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 the insurance?
The sum assured is paid after the death of the EPFO member. Explain that after the death of the EPFO member, the amount of insurance is claimed by the nominee or his successor. If the EPF employee dies while in service then the nominee or the legal heir can claim for the insurance. The minimum insurance benefit amount under this plan is Rs 2.5 lakh. Whereas, the maximum amount of insurance is Rs 7 lakh. The sum assured is deposited directly into the bank account of the nominee.
How is the Sum Assured determined?
The sum assured is calculated on the basis of last 12 months salary of the deceased EPFO employee. The amount of insurance is 35 times of 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 Rs 6 lakh. 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 have to 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 problem in availing the benefits of EPF, EPS and EDLI schemes. On the other hand, if the name of the nominee has not been added to any account, then all the legal heirs of the account holder have to do a lot of paperwork to get the money. Because of this, it takes time to get the claim.
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