The uncertainties of life today make it important for everyone to have enough insurance coverage. This is especially important for private sector employees, who do not get the same social security benefits as public sector employees.
To provide life insurance benefits to private employees, the government started the Employees’ Deposit Linked Insurance Scheme (EDLI) in 1976.
The EPFO has increased the maximum benefit to ₹7 lakh for registered nominees of a deceased member from 28.04.2021. The Ministry had increased the minimum benefit to ₹2.5 lakh in February 2018. The EPFO decided to keep the minimum benefit at ₹2.5 lakh effective 15 February 2020.
Employee Deposit Linked Insurance Scheme (EDLI)
Effective 28 April 2021, the EPFO has extended benefits to nominees of deceased members who changed their job within 12 months before their death.
The Employee Deposit Linked Insurance Scheme (EDLI) is for salaried employees in the private sector. EDLI is an insurance cover for EPFO subscribers. The scheme was started in 1976. If the insured employee dies while in service, the nominee gets a lump sum payment.
The purpose of EDLI is to provide financial help to the family of the employee after their death. This scheme is open to all employees. There are no exclusions. The last drawn salary of the employee decides the benefit limit.