What is Employees' Deposit Linked Insurance Scheme: Today I am going to give you an overview of the Employees' Deposit Linked Insurance Scheme. The short form of the Employees' Deposit Linked Insurance Scheme is EDLI. In this article, you will be able to understand the Employees' Deposit Linked Insurance Scheme and its benefits.
What is Employees' Deposit Linked Insurance Scheme
This Employees' Deposit Linked Insurance Scheme is covered by the Employees' Provident Fund Organisation (EPFO). This scheme is for Private Sectored salaried employees. The benefits of this scheme are decided by the last drawn salary of the employee. This scheme is a combination of EPF and EPS (Employees' Pension Scheme).
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The nominee of the employee gets a lump sum payment of the EDLI Scheme if the EPF member gets expired during the period of the service. The nominee of the EPF member is automatically registered under the EDLI scheme.
This information is recently tweeted from their social media handle, Twitter where they mentioned the benefits of this scheme.
Benefits of the Employees' Deposit Linked Insurance Scheme
The features of the Employees' Deposit Linked Insurance Scheme are below.
- While in service if the EPF member expires, the nominee or the legal heir can avail a rupees of 7 Lakh of benefit.
- If the EPF member is deceased and he continuously worked for 12 months before his/her death, then as per EDLI scheme 1976, the nominee can avail a minimum assurance benefit of rupees 2.5 Lakh.
- The Life Insurance benefits are directly transferred to the EPFO member without any service cost. The employer contributes 0.5% of the employee's monthly salary.
- The nominee of the EPF member is automatically enrolled in the EDLI Scheme.
- The Insurance amount is directly credited to the bank account of the nominee or legal heir.
Conclusion
I hope you can understand this small overview of What is Employees' Deposit Linked Insurance Scheme and its benefits. To avail this kind of information, kindly visit this blog always and get interesting news like this. I'll be back with a new post.