{"id":7928,"date":"2025-07-16T12:42:00","date_gmt":"2025-07-16T12:42:00","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7928"},"modified":"2025-07-16T12:42:01","modified_gmt":"2025-07-16T12:42:01","slug":"edli-scheme","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/edli-scheme\/","title":{"rendered":"EDLI Scheme"},"content":{"rendered":"<p>The <strong>Employees&#x2019; Deposit Linked Insurance (EDLI)<\/strong> scheme is a <strong>free group-term life insurance<\/strong> offered to employees covered under <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/epf\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>EPF<\/a>. Managed by the EPFO since 1976, it provides a lump-sum payout to your designated nominee if you pass away while in active service.<\/p>\n\n\n\n<h2 id=\"key-features\" class=\"wp-block-heading\">Key Features<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Automatic coverage<\/strong> for all EPF members&#x2014;no signup needed<\/li>\n\n\n\n<li><strong>Employer-funded:<\/strong> The employee contributes &#x20B9;0<\/li>\n\n\n\n<li><strong>Cost-effective:<\/strong> Employer pays 0.50% of basic + DA, capped at &#x20B9;75 per month<\/li>\n\n\n\n<li><strong>Uniform coverage:<\/strong> Same benefit level irrespective of age, health, or job position<\/li>\n\n\n\n<li><strong>Worldwide protection:<\/strong> Covers death anywhere, including abroad<\/li>\n<\/ul>\n\n\n\n<h2 id=\"benefits-payout-amount\" class=\"wp-block-heading\">Benefits (Payout Amount)<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Death benefit formula:<\/strong> <code>35 &#xD7; average monthly salary (last 12 months) + &#x20B9;2.5&#x202F;lakh bonus<\/code>, capped at <strong>&#x20B9;7&#x202F;lakh<\/strong><\/li>\n\n\n\n<li><strong>Minimum payout:<\/strong> &#x20B9;2.5&#x202F;lakh; <strong>Maximum:<\/strong> &#x20B9;7&#x202F;lakh<\/li>\n\n\n\n<li><strong>Lower amounts<\/strong> apply if salary &lt; &#8377;15&#8239;000\/month, proportionately calculated<\/li>\n\n\n\n<li>Benefits are <strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>-exempt<\/strong> under <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-1010d\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 10(10D)<\/a> in the hands of the nominee<\/li>\n<\/ul>\n\n\n\n<h2 id=\"eligibility-criteria\" class=\"wp-block-heading\">Eligibility Criteria<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You must be an <strong>active EPF member<\/strong> at the time of death<\/li>\n\n\n\n<li>Works in an establishment <strong>covered by EPF<\/strong> (usually with &#x2265;&#x202F;20 employees)<\/li>\n\n\n\n<li>If your <strong>salary is above &#x20B9;15&#x202F;000\/month<\/strong>, higher pay is still covered but capped at benefit maximum<\/li>\n\n\n\n<li>Employers may <strong>opt out<\/strong> if providing an <strong>equal or better group insurance<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 id=\"how-it-works\" class=\"wp-block-heading\">How It Works<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Employer contributes<\/strong> 0.5% of your salary + DA monthly to EDLI fund<\/li>\n\n\n\n<li>You remain covered <strong>while employed under EPF<\/strong><\/li>\n\n\n\n<li>On death, the <strong>nominee files claim<\/strong> using Form 5IF and required documents (death certificate, nomination, bank details)<\/li>\n\n\n\n<li><strong>EPFO processes<\/strong> and disburses within ~30&#x202F;days; interest may apply if delayed<\/li>\n<\/ol>\n\n\n\n<h2 id=\"documents-needed-to-claim\" class=\"wp-block-heading\">Documents Needed to Claim<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Form 5IF (Death claim)<\/li>\n\n\n\n<li>Death certificate<\/li>\n\n\n\n<li>Nominee details (or succession\/guardianship certificate)<\/li>\n\n\n\n<li>Cancelled cheque for beneficiary&#x2019;s bank account<\/li>\n<\/ul>\n\n\n\n<h2 id=\"summary-at-a-glance\" class=\"wp-block-heading\">Summary at a Glance<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>Details<\/th><\/tr><\/thead><tbody><tr><td><strong>Coverage<\/strong><\/td><td>Free life insurance via EPF<\/td><\/tr><tr><td><strong>Who pays<\/strong><\/td><td>Employer only (0.5%, max &#x20B9;75\/month)<\/td><\/tr><tr><td><strong>Employee cost<\/strong><\/td><td>&#x20B9;0<\/td><\/tr><tr><td><strong>Benefit amount<\/strong><\/td><td>Up to &#x20B9;7&#x202F;lakh (35&#xD7; salary + &#x20B9;2.5&#x202F;lakh bonus)<\/td><\/tr><tr><td><strong>Minimum benefit<\/strong><\/td><td>&#x20B9;2.5&#x202F;lakh<\/td><\/tr><tr><td><strong>Eligibility<\/strong><\/td><td>Active EPF member, salary &#x2264; any, in EPF-covered organization<\/td><\/tr><tr><td><strong>Claim documents<\/strong><\/td><td>Form 5IF, death cert, nominee\/guardian proof, bank details<\/td><\/tr><tr><td><strong>Tax status<\/strong><\/td><td>Exempt under Section 10(10D)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"why-it-matters\" class=\"wp-block-heading\">Why It Matters<\/h3>\n\n\n\n<p>EDLI gives your family <strong>strong financial security<\/strong> if something happens to you. It&#x2019;s an essential, no-cost benefit tied to your work&#x2014;making it both thoughtful and practical.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Employees&#x2019; 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 Benefits (Payout Amount) Eligibility Criteria How It Works Documents Needed to [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7928","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7928\/revisions"}],"predecessor-version":[{"id":7929,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7928\/revisions\/7929"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}