Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us
How can you benefit from EDLI

Employee Deposit Linked Insurance Scheme (EDLI): How can you benefit from it?

by Holistic 4 Comments | Filed Under: Insurance

Do you know your EPF account, through its scheme called EDLI, provides you with the insurance cover up to Rs.6 Lacs??

In this scheme, you don’t have to invest a single dime from your pocket!!

Yes, it is true…

The Government of India has introduced the Employee Deposit Linked Insurance Scheme (EDLI) in 1976. Through this scheme, it is possible to get an adequate insurance cover with the value up to Rs. 6 Lacs!!

All the EPF members will automatically become a member of EDLI.

As you know, the long term security measures are becoming necessary for every individual due to various uncertainties of life in the modern world.

In this article, we will discuss EDLI in greater detail.

So, What is EDLI?

The EDLI is an insurance cover provided by the Employees Provident Fund Organisation(EPFO) for all the salaried employees in the private sector, who are members of the EPF scheme.

[the_ad id=’13526′]
A lump-sum payment will be received by the registered nominee in the event of the death of the person insured. The limit of the benefit is decided by the last drawn salary of the employee.

EDLI is applicable to all organizations registered under the Employees Provident Fund (EPF) and Miscellaneous Provisions Act, 1952. All such organizations must subscribe to this scheme and offer life insurance benefits to its employees. The EDLI scheme works in combination with EPF and EPS.

Key Features of the EDLI Scheme

i) All the EPF members are automatically enrolled in an EDLI Scheme.

ii) All employees with a “Basic Salary+DA” equal to or under Rs. 15,000/- per month can avail the benefits of the EDLI Scheme.

iii) In case the “Basic Salary+DA” goes above Rs.15,000 per month, the maximum benefit is capped at Rs.6,00,000/-. The detailed calculation will be described in the later section.

iv) All the Insurance benefits under the EDLI Scheme can be availed by the family members, nominee or the legal heirs of the EDLI member.

v) There is no minimum service period for availing the EDLI benefits.

vi) An employee doesn’t need to contribute any amount to EDLI. The entire contribution to EDLI is to be made by the employer and no hidden fee can be deducted from the employee’s salary.

vii) Maximum contribution of the employer towards EDLI is capped at Rs. 75 per month.

viii) There is an additional bonus of Rs.1,50,000/- available under the EDLI.

ix) An employer can opt for another group insurance scheme, but the benefits offered must be equal to or more than those offered under EDLI.

x) The claim amount under ELDI is 30 times the average monthly salary (Basic Pay + DA) in the past 12 months.

Contribution of an Employer towards Employee’s EPF account

As mentioned earlier, the EDLI corpus is maintained entirely by an employer.

0.5% of your ‘Basic Pay + DA’ will be deposited to your EDLI account by the employer.

The prime objective of the EDLI scheme is to offer financial security to the family members of the policy-holder.

EDLI Scheme is transferable with any change in the job. The new employer will continue to make payments on the existing account, defined under a single UAN.

For more insights and clarity on your EPF Account, you can read this Comprehensive guide on EPF. Here you will learn all the features and benefits of your EPF account.

Eligibility Criteria to avail EDLI benefits

Following persons are eligible to apply for claiming insurance benefits under the EDLI Scheme:

  • Members of the family (Nominees) nominated under the EPF Scheme.
  • In case of no nomination, the members of the family including spouse and children less than 25 years of age will avail the EDLI benefits.
  • In case, the deceased has no family and no nomination, legal heir will receive EDLI benefits based on the family situation of the EDLI member.
  • Guardian of a minor nominee/family member/legal heir

How to Claim EDLI Benefits?

Those who are eligible to avail EDLI benefits, as discussed in the above section has to fill the Form 5 IF, to get the insurance benefits after the death of the EDLI member.

The claim form has to be signed and certified by the employer.

In case there is no employer, the form has to be attested by anyone of the following:

  • Any Gazetted Officer
  • Magistrate
  • MLA or MP
  • Bank Manager (where the account was maintained)
  • President of Gram Panchayat
  • Chairman / Secretary / Member of Municipal or District Local Board
  • Postmaster or Sub Postmaster
  • Member of Regional Committee of EPF

FORM 5 IF

➥ Form 5 IF can be filled along with the Form 20 towards EPF withdrawal claim in case of the deceased member.

➥ Form 5 IF can also be filled with Form 10C/Form10D to claim benefits of all the three schemes (EPF, EPS, and EDLI) in one go.

The claimant must submit all the documents along with the completed form to the regional EPF Commissioner’s Office for processing of the claim.

Any additional documents required by the authority must be furnished at earliest to process the claim.

Once all the documents are provided and the claim is accepted, the EPF commissioner must settle the claim within 30 days from the receipt of the claim. Otherwise, the claimant is entitled to interest @12% p.a. Till the date of actual disbursal.

Documents Required for payout under EDLI

The claimant has to submit the following documents along with the Form 5 IF to get the amount disbursed under the EDLI scheme:

  • Death Certificate of the member
  • Guardianship certificate if the claim on behalf of a minor family member/nominee/legal heir is by other than the natural guardian.
  • Succession certificate in case of a claim by the legal heir.
  • Copy of a cancelled cheque of the bank account in which the payment has opted.
  • In case the member was last employed in the establishment exempted under the EPF Scheme 1952, the employer of such establishment should furnish the PF details of last 12 months under the Certificate part and also send an attested copy of the Member’s Nomination Form.

Calculation of EDLI Payout

The nominee will receive the EDLI payout in the event of the death of an EDLI member. Insurance amount at pay-out is calculated as shown below:

[Average Monthly Salary of an Employee for the last 12 months] x 30 + Bonus Amount of ₹ 1,50,000/-

Therefore, the insurance amount that the nominee of a deceased member gets is calculated as 30 times the average monthly salary in the last 12 months of employment, plus a bonus amount of up to ₹1,50,000 is also paid to the claimant under this scheme. The maximum average monthly salary is capped at ₹15,000/-

If the average monthly salary of an employee is ₹ 15,000

So, 30 times the salary will be 30 x ₹ 15,000 = ₹ 4,50,000

After adding the bonus of ₹1,50,000, the amount will become ₹6,00,000/-

Thus, the total amount payable under this scheme to the beneficiary is ₹ 6,00,000/-

Conclusion

So, we hope that the above article has given you clear insights into the EDLI Scheme.

EPF is an excellent scheme which provides you with the Pension benefits through its EPS Scheme, and insurance benefits through its EDLI Scheme, without your single penny of investment in EPS or EDLI.

If you have any further queries on EDLI Scheme, feel free to post them below, in the comment section.

[the_ad id=’13360′]

Reader Interactions

Previous article: All you wanted to know about Employee Pension Scheme (EPS)
Next article: Which Financial Information Can Destroy (or Save) Your Investments?- Discover Here!

Comments

  1. Partha Majumder says

    September 18, 2020 at 1:13 pm

    Sir, I have one questions that when I get the EDLI benefit (If I die while working in the office or when I will die in my house) both are applicable for EDLI benefit.

    Partha Majumder
    Kolkata

    Reply
    • Holistic says

      October 23, 2021 at 5:00 pm

      The nominee or the legal heir can claim within 30 days from the receipt of the claim.

      Reply
  2. DR GUPTA says

    June 6, 2020 at 5:07 pm

    GOOD SCHEME

    Reply
    • Holistic says

      October 13, 2021 at 3:05 pm

      Thank you for sharing your feedback!

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • LIC Dhan Varsha Insurance Plan: Complete Analysis & Review – Should you buy? 
  • Tata AIA Life Insurance Smart Value Income Plan: An In-depth & Insightful Review
  • Mastering Islamic Finance: The Ultimate Guide to Sharia Investment
  • Smart Financial Planning Tips for Beginners – A Complete Guide
  • SIP Investment Mistakes! How to Overcome Them?
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×