The Employees’ Deposit Linked Insurance (EDLI) scheme is a free group-term life insurance offered to employees covered under EPF. Managed by the EPFO since 1976, it provides a lump-sum payout to your designated nominee if you pass away while in active service.
Key Features
- Automatic coverage for all EPF members—no signup needed
- Employer-funded: The employee contributes ₹0
- Cost-effective: Employer pays 0.50% of basic + DA, capped at ₹75 per month
- Uniform coverage: Same benefit level irrespective of age, health, or job position
- Worldwide protection: Covers death anywhere, including abroad
Benefits (Payout Amount)
- Death benefit formula:
35 × average monthly salary (last 12 months) + ₹2.5 lakh bonus, capped at ₹7 lakh - Minimum payout: ₹2.5 lakh; Maximum: ₹7 lakh
- Lower amounts apply if salary < ₹15 000/month, proportionately calculated
- Benefits are tax-exempt under Section 10(10D) in the hands of the nominee
Eligibility Criteria
- You must be an active EPF member at the time of death
- Works in an establishment covered by EPF (usually with ≥ 20 employees)
- If your salary is above ₹15 000/month, higher pay is still covered but capped at benefit maximum
- Employers may opt out if providing an equal or better group insurance
How It Works
- Employer contributes 0.5% of your salary + DA monthly to EDLI fund
- You remain covered while employed under EPF
- On death, the nominee files claim using Form 5IF and required documents (death certificate, nomination, bank details)
- EPFO processes and disburses within ~30 days; interest may apply if delayed
Documents Needed to Claim
- Form 5IF (Death claim)
- Death certificate
- Nominee details (or succession/guardianship certificate)
- Cancelled cheque for beneficiary’s bank account
Summary at a Glance
| Feature | Details |
|---|---|
| Coverage | Free life insurance via EPF |
| Who pays | Employer only (0.5%, max ₹75/month) |
| Employee cost | ₹0 |
| Benefit amount | Up to ₹7 lakh (35× salary + ₹2.5 lakh bonus) |
| Minimum benefit | ₹2.5 lakh |
| Eligibility | Active EPF member, salary ≤ any, in EPF-covered organization |
| Claim documents | Form 5IF, death cert, nominee/guardian proof, bank details |
| Tax status | Exempt under Section 10(10D) |
Why It Matters
EDLI gives your family strong financial security if something happens to you. It’s an essential, no-cost benefit tied to your work—making it both thoughtful and practical.
