₹7 Lakh Life Insurance: Here's What You Need To Know About EPFs

IndiaFirst Life
• 30 Jul, 2025

When you think of EPF (Employees' Provident Fund), you may possibly consider it to be a retirement savings plan. But did you know that being an EPF member can also get your family life insurance cover of up to ₹7 lakh? This benefit is offered through the Employees’ Deposit-Linked Insurance (EDLI) scheme managed by EPFO. By being aware of and making the most of this lesser-known benefit, you could make a big difference to your family’s financial security.

How Does Life Insurance Factor in Under EPF?

Under the EPF umbrella, there are three major schemes: EPF, EPS, and EDLI. Many people compare EPF vs EPS, but EDLI is to be kept in mind if you are looking for a life insurance component. EPF and EPS require contributions from both the employee and the employer. The EDLI scheme needs no employee contribution; only the employer contributes.

Any salaried employee who is a member of EPF is automatically eligible for EDLI coverage (provided they have worked for at least one continuous year). So, if you are wondering whether you are eligible for ₹7 lakh life insurance under EPF, the answer is yes, if you are actively contributing to EPF and meet the minimum service requirement. However, you can opt out if you prefer a higher-paying life insurance policy.

The sum assured under the EDLI scheme is calculated using the employee’s last 12 months’ average monthly salary. However, the total life cover for an EPF member under EDLI can go up to a maximum of ₹7 lakh. So, being eligible for ₹7 lakh life insurance under EPF means your family can get this benefit in case of your untimely demise, without you paying extra.

Documents Needed for Life Insurance Claim Settlement with EPFO

In case of an unfortunate event, the nominee or legal heir of the employee must file for the insurance payout. Here’s what’s needed:

Composite Claim Form - Used for PF, pension, and EDLI claims.
Death Certificate or Succession Certificate
Cancelled Cheque - For the account where the money is to be transferred.

Recent changes in EPFO claim settlement have made the process faster and more transparent. Regardless, it is essential to ensure all documents are submitted properly and on time for a smooth experience.

Withdrawing EPF Pension to Supplement Life Cover

If your beneficiaries are also planning to withdraw their pension, they may need to submit Form 20. However, if you, as an employee, are planning to do the same, you need to submit EPF Form 10C. If you are wondering how to withdraw EPF after leaving your job, the online EPFO portal and UAN-based login have made the process simple and quick. Before you do so, it is crucial to understand the implications of income tax on EPF withdrawal.

To sum up, the EDLI scheme provides a ₹7 lakh life insurance cover at no cost to employees. Knowing how it works can help you protect your loved ones’ future. Understand your rights, file the right forms, and ensure your nominee is prepared in case of need.

by IndiaFirst Life
Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 754.37 crore, is one of the fastest growing private life insurers in India in terms of New Business IRP in Fiscal 2023. Our key differentiators are our simple, easy-to-understand products that are optimally priced. As of Sept 30, 2023, we offered 30 retail products, 13 group products along with six riders (across retail and group portfolios), along with policies under the PMJJBY scheme, catering to protection, savings, health and retirement needs of our customers, leveraging multiple distribution capabilities and augmenting various investment options. In all propositions under the categories of Participating Plans, Non-Participating Savings Plans, Non-Participating Protection Plans, Unit Linked Insurance Plans, Group Protection Plans, Corporate Funds Plans, Riders & PMJJBY form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and optimally priced with a developed comprehensive risk management framework/policy.