EDLI in EPF; Free Life Insurance That Every EPF Member Needs to Know About

EDLI in EPF: Free Life Insurance That Every EPF Member Needs to Know About

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EDLI in EPF, What is the EDLI Scheme under EPF, Employees’ Deposit Linked Insurance Scheme, EDLI Scheme, Key Features, Benefits, Eligibility, Calculation, Required Documents, Claim Process

The Employees’ Deposit Linked Insurance Scheme (EDLI) is a vital component of the Employees’ Provident Fund (EPF) in India. It provides a safety net for the families of EPF members by offering a lump-sum payment in case of the member’s unfortunate demise while in service. This article aims to demystify EDLI and provide a comprehensive overview of its features, benefits, eligibility criteria, calculation, documents required, and claim process.

Understanding EDLI

Launched in 1976, EDLI is a social security scheme administered by the Employees’ Provident Fund Organisation (EPFO). It offers life insurance coverage to all active EPF members, completely free of cost. This means employees do not need to make any separate contributions towards EDLI. The scheme is funded by a nominal 0.5% contribution from the employer’s share of the employee’s basic salary, capped at Rs. 15,000 per month.

Key Features of EDLI

The silent key features of the Employees’ Deposit Linked Insurance Scheme are as follows:

  • Automatic Coverage: All active EPF members are automatically enrolled in EDLI, eliminating the need for separate enrollment or premium payments.
  • Employer Contribution: The cost of EDLI is borne entirely by the employer. A nominal 0.5% of the employee’s monthly wages (including basic salary, dearness allowance, and retaining allowance) is contributed towards the scheme, capped at Rs. 75 per month.
  • Benefit Amount: The death benefit under EDLI is calculated based on a formula that takes into account the average monthly wage of the deceased employee in the preceding 12 months and a factor based on the date of death. Currently, the minimum benefit is Rs. 2.5 lakh, and the maximum is Rs. 7 lakh.
  • Bonus Coverage: In addition to the death benefit, EDLI also offers a bonus benefit of Rs. 2.5 lakh for members who die due to natural causes.
  • Nominee or Legal Heirs: The death benefit is payable to the nominee registered with the EPFO or, in their absence, to the legal heirs of the deceased employee.

Unlocking the Power of Employee Provident Fund (EPF): Benefits, Eligibility, and More

Eligibility for EDLI

  • All active EPF members under the age of 58 are automatically covered under EDLI.
  • Members who are 58 years or older but have opted for continued employment beyond 58 are also eligible for EDLI coverage.
  • Members who are on unpaid leave or are temporarily out of service due to illness may be eligible for EDLI benefits depending on the specific circumstances.

Calculation Of EDLI

The maximum coverage under the EDLI scheme is calculated using the formula:

Average Monthly Salary x 30 + Bonus Amount


  • Average Monthly Salary is capped at 15,000 per month
  • Bonus Amount is fixed at 2,50,000


Average Monthly Salary = 15,000
Bonus Amount = 2,50,000
Maximum EDLI Coverage = (15,000 x 30) + 2,50,000 = 4,50,000 + 2,50,000 = 7,00,000

The maximum EDLI coverage payable is capped at 7 lakhs.

Documents Required to Claim EDLI Benefits

The following documents must be submitted by the claimant to claim the EDLI insurance amount:

  1. Duly completed EDLI Form 5 IF – This form contains details of the insured member and nominee. It must be certified by the employer or other authorized personnel if employer certification is not possible.
  1. Death Certificate of the insured member – Provides proof of death of the insured employee.
  1. Succession Certificate – Required if the legal heir is filing the claim instead of the nominee. Establishes the authenticity of the legal heir.
  1. Guardianship Certificate – Necessary if the claim is filed on behalf of a minor by someone other than the natural guardian.
  1. Cancelled cheque of claimant’s account – Required to credit the claim amount to the correct account.
  1. Any other documents supporting the claim as required by the EPF Commissioner’s Office.

How to Claim EDLI Benefits

The nominee specified by the insured member needs to claim the EDLI benefits. If no nominee is specified, the legal heir or a family member can submit the claim. The insured must have been an active EPF member at the time of death.

Steps to claim EDLI by the nominee:

  1. Fill and submit Form 5 IF of EDLI. Get this form certified and signed by the employer.
  1. If employer certification is not possible, get Form 5 IF attested by a Local MLA or MP, Gazetted Officer, Bank Manager (in the branch where the insured account was maintained), Postmaster, Magistrate, Village Panchayat President, Member of CBT or Regional Committee of EPF.
  1. Submit the signed Form 5 IF along with the necessary documents to the EPF Commissioner’s Office to initiate claim processing. Form 20 (EPF withdrawal) and Form 10C / Form 10D can also be submitted to claim EPS, EPF, and EDLI benefits.
  1. Submit all documents as early as possible to avoid delays.
  1. The EPF Commissioner must settle and disburse the claim amount to the nominee within 30 days of receiving the documents. If not done, the claimant gets 12% interest per annum until claim settlement.

Voluntary Provident Fund (VPF), Features, Benefits, Eligibility, Contribution, Process to Open

Benefits of EDLI

There are the following benefits of Employees’ Deposit Linked Insurance Scheme:

  • Financial Support: EDLI provides a significant financial cushion for your family in case of your untimely demise. This can help them cover immediate expenses, maintain their standard of living, and plan for the future without financial hardship.
  • Peace of Mind: Knowing that your family is financially protected can provide you with peace of mind and allow you to focus on your work and life without worrying about the future.
  • Free Coverage: EDLI comes at no additional cost to employees. The employer contribution towards the scheme is minimal, making it a highly beneficial and cost-effective insurance cover.

Limitations of EDLI

There are the following limitations of Employees’ Deposit Linked Insurance Scheme:

  • Limited Coverage: The maximum benefit under EDLI currently stands at Rs. 7 lakh, which may not be sufficient for families with high financial dependence on the deceased member.
  • No Coverage for Pensioners: Once an EPF member retires and starts receiving a pension, they are no longer covered under EDLI.
  • Claims Processing Delays: While the claim process is relatively straightforward, there can be delays in disbursement depending on the workload and verification procedures at the EPFO office.


The Employees’ Deposit Linked Insurance Scheme (EDLI) is a valuable social security initiative in India, offering peace of mind and financial support to families of deceased EPF members. With automatic coverage, employer-funded contributions, and bonus benefits, EDLI provides a crucial safety net in times of tragedy. While limitations like capped coverage and no pensioner coverage exist, EDLI remains a significant resource for many working individuals and their families. Understanding the scheme’s features, eligibility, and claim process empowers individuals to navigate potential loss with better preparedness and access to support. By taking advantage of EDLI and considering additional insurance options if needed, employees can ensure their families are protected and equipped to cope with future challenges.


Q: What is EDLI?

Ans: EDLI stands for Employees’ Deposit Linked Insurance Scheme. It’s a free life insurance scheme for active members of the Employees’ Provident Fund (EPF) in India.

Q: How much coverage does EDLI provide?

Ans: The maximum benefit depends on your average monthly salary but is capped at Rs. 7 lakh. You can calculate your potential coverage using the formula mentioned in the article.

Q: Who pays for EDLI?

Ans: Your employer contributes 0.5% of your monthly wages (capped at Rs. 75) towards EDLI. You don’t need to pay anything extra.

Q: Do I need to enroll in EDLI?

Ans: No, if you’re an active EPF member under 58, you’re automatically covered under EDLI.

Q: Who is eligible for EDLI?

Ans: All active EPF members under 58 are eligible. Additionally, members over 58 who continue working are also covered.

Q: Who receives the EDLI benefit?

Ans: Your nominated beneficiary. If no nominee is specified, your legal heirs will receive the benefit.

Q: How do I claim EDLI benefits?

Ans: The nominee or legal heir needs to submit Form 5 IF along with necessary documents like death certificate, succession certificate (if applicable), and cancelled cheque to the EPF Commissioner’s Office.

Q: What documents are required to claim EDLI?

Ans: The article details the complete list of documents required, including Form 5 IF, death certificate, and others.

Q: How long does it take to receive the EDLI benefit?

Ans: The EPFO aims to settle the claim within 30 days of receiving documents. Delays can occur depending on workload and verification procedures.

Q: Should I consider additional insurance besides EDLI?

Ans: Yes, EDLI provides a basic safety net, but depending on your family’s needs, you might consider additional insurance for higher coverage or specific needs.

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