EDLI

What Is EDLI?

Employees' Deposit Linked Insurance (EDLI) is a safety net created by the Employees' Provident Fund Organization (EPFO) in India that offers life insurance coverage to the employees having enrolled under the Employees' Provident Fund (EPF) scheme. This is the scheme by which a life insurance cover is granted to EPF members who die in service. Under this plan, the assurance cover is worked out from the aggregate balance in the person's EPF account and the payable amount is either to the nominee or legal heirs of the deceased employee. The main aim of the EDLI policy is to furnish financial safety nets and support to workers’ families in case of work related deaths.

Example

Let us investigate a case of an employee's death while still in service due to an accident that was unforeseen. At the time of death, the EPF balance of the employee is $50000. According to the end of the EDL scheme, the employee's nominee and the legal heirs would be the beneficiaries of the life insurance amount which equals 30 times the average monthly salary in the preceding 12 months, not more than the maximum limit. As per the EDLI regulations, if the average monthly salary of the expired employee is $5,000, then the highest insurance amount that can be received is 1.5 lakhs. The nominee or legal heirs of the deceased EPF member will receive the whole EPF balance and the extra insurance amount as insurance amount if the EPF member's account balance is less than the maximum insurance limit. The EDLSI program is a salvation for workers and their families as it affords financial aid and tranquility under these difficult circumstances.