How to ensure your family receives up to ₹7 lakh under EPFO's EDLI insurance scheme
EPFO members are entitled to a life insurance cover of up to ₹7 lakh under the Employees' Deposit Linked Insurance (EDLI) scheme at no extra cost. However, keeping e-nomination and personal records updated is crucial to ensure families receive the benefit without delays.
- Jun 5, 2026,
- Updated Jun 5, 2026 1:38 PM IST
EPFO has urged Employees' Provident Fund (EPF) members to update their e-nomination details to ensure that families can quickly access insurance benefits of up to ₹7 lakh under the Employees' Deposit Linked Insurance (EDLI) scheme in the event of a member's death while in service.
The retirement body said keeping nominee information updated is crucial for faster claim settlement and helps avoid procedural delays for beneficiaries during difficult times.
What is the EDLI scheme?
The Employees' Deposit Linked Insurance (EDLI) scheme is a life insurance benefit administered by the Employees' Provident Fund Organisation (EPFO). The scheme provides a tax-free lump-sum insurance payout to the nominee or legal heir of an EPF member who dies while in active service.
A key feature of the scheme is that employees are not required to pay any premium. The insurance cover is funded entirely by employers, and all eligible EPF members are automatically covered under the scheme.
The insurance benefit ranges from a minimum of ₹2.5 lakh to a maximum of ₹7 lakh, making it one of the most significant social security benefits available to private-sector employees.
MUST READ: BT Explainer: Why your PF interest has not been credited yet — and when it may come
How much cover is available?
Under current EDLI rules, the maximum insurance payout can reach ₹7 lakh.
The benefit is calculated based on the employee's salary, subject to prescribed limits. The payout formula includes a multiple of the average monthly salary along with an additional bonus component.
Key EDLI Features
Feature Details
Maximum insurance benefit ₹7 lakh Minimum insurance benefit ₹2.5 lakh Premium paid by employee Nil Coverage Automatic for eligible EPF members Benefit recipient Registered nominee or legal heir Tax treatment Tax-free lump-sum payout
The minimum assurance benefit of ₹2.5 lakh was extended retrospectively from February 15, 2020, providing enhanced protection to employees' families.
MUST READ: Need money fast? Here's how much PF can you withdraw instantly via UPI rules
Why updating e-nomination is important
EPFO has repeatedly emphasized that an updated e-nomination is essential for smooth claim processing.
If nominee details are missing, outdated, or incorrect, family members may be required to submit additional documents and undergo verification procedures, potentially delaying benefit payments.
Members can update nominee details online through the EPFO portal. Once submitted, the update is generally reflected within a few days.
Keeping records current is particularly important after major life events such as marriage, childbirth, or changes in family circumstances.
Multiple benefits
The EDLI payout is not the only financial support available to a deceased member's family.
Depending on eligibility, beneficiaries may receive:
EPF accumulated balance along with interest Monthly pension under the Employees' Pension Scheme (EPS) EDLI insurance benefit of up to ₹7 lakh
The pension component may continue for the spouse's lifetime, while eligible children and dependent family members may also receive benefits under EPS provisions.
This combination of insurance, retirement savings, and pension support is designed to provide both immediate and long-term financial assistance to families.
MUST READ: BT Explainer: EPFO’s UPI withdrawal feature explained — How it will work for PF members
How can nominees claim EDLI benefits?
In the event of a member's death, nominees or legal heirs must submit Form 5 IF along with supporting documents such as:
Death certificate Cancelled bank cheque Guardianship certificate, if applicable Succession certificate, where required
If employer certification is unavailable, the claim form can be attested by designated public authorities, including MPs, MLAs, bank managers, magistrates, or gazetted officers.
Once submitted to the regional EPF office, the claim is required to be settled within 30 days. Delays beyond this period may attract interest at 12% per annum.
Social security benefit
The EDLI scheme remains a key pillar of India's employee welfare framework, offering life insurance protection without imposing any additional cost on workers. With coverage of up to ₹7 lakh and access to EPF and pension benefits, EPFO says maintaining updated nominee records is one of the simplest yet most important steps members can take to safeguard their families' financial future.
MUST READ: Has EPFO cleared a minimum EPS-95 pension hike to Rs 7,500? Here's what pensioners need to know
EPFO has urged Employees' Provident Fund (EPF) members to update their e-nomination details to ensure that families can quickly access insurance benefits of up to ₹7 lakh under the Employees' Deposit Linked Insurance (EDLI) scheme in the event of a member's death while in service.
The retirement body said keeping nominee information updated is crucial for faster claim settlement and helps avoid procedural delays for beneficiaries during difficult times.
What is the EDLI scheme?
The Employees' Deposit Linked Insurance (EDLI) scheme is a life insurance benefit administered by the Employees' Provident Fund Organisation (EPFO). The scheme provides a tax-free lump-sum insurance payout to the nominee or legal heir of an EPF member who dies while in active service.
A key feature of the scheme is that employees are not required to pay any premium. The insurance cover is funded entirely by employers, and all eligible EPF members are automatically covered under the scheme.
The insurance benefit ranges from a minimum of ₹2.5 lakh to a maximum of ₹7 lakh, making it one of the most significant social security benefits available to private-sector employees.
MUST READ: BT Explainer: Why your PF interest has not been credited yet — and when it may come
How much cover is available?
Under current EDLI rules, the maximum insurance payout can reach ₹7 lakh.
The benefit is calculated based on the employee's salary, subject to prescribed limits. The payout formula includes a multiple of the average monthly salary along with an additional bonus component.
Key EDLI Features
Feature Details
Maximum insurance benefit ₹7 lakh Minimum insurance benefit ₹2.5 lakh Premium paid by employee Nil Coverage Automatic for eligible EPF members Benefit recipient Registered nominee or legal heir Tax treatment Tax-free lump-sum payout
The minimum assurance benefit of ₹2.5 lakh was extended retrospectively from February 15, 2020, providing enhanced protection to employees' families.
MUST READ: Need money fast? Here's how much PF can you withdraw instantly via UPI rules
Why updating e-nomination is important
EPFO has repeatedly emphasized that an updated e-nomination is essential for smooth claim processing.
If nominee details are missing, outdated, or incorrect, family members may be required to submit additional documents and undergo verification procedures, potentially delaying benefit payments.
Members can update nominee details online through the EPFO portal. Once submitted, the update is generally reflected within a few days.
Keeping records current is particularly important after major life events such as marriage, childbirth, or changes in family circumstances.
Multiple benefits
The EDLI payout is not the only financial support available to a deceased member's family.
Depending on eligibility, beneficiaries may receive:
EPF accumulated balance along with interest Monthly pension under the Employees' Pension Scheme (EPS) EDLI insurance benefit of up to ₹7 lakh
The pension component may continue for the spouse's lifetime, while eligible children and dependent family members may also receive benefits under EPS provisions.
This combination of insurance, retirement savings, and pension support is designed to provide both immediate and long-term financial assistance to families.
MUST READ: BT Explainer: EPFO’s UPI withdrawal feature explained — How it will work for PF members
How can nominees claim EDLI benefits?
In the event of a member's death, nominees or legal heirs must submit Form 5 IF along with supporting documents such as:
Death certificate Cancelled bank cheque Guardianship certificate, if applicable Succession certificate, where required
If employer certification is unavailable, the claim form can be attested by designated public authorities, including MPs, MLAs, bank managers, magistrates, or gazetted officers.
Once submitted to the regional EPF office, the claim is required to be settled within 30 days. Delays beyond this period may attract interest at 12% per annum.
Social security benefit
The EDLI scheme remains a key pillar of India's employee welfare framework, offering life insurance protection without imposing any additional cost on workers. With coverage of up to ₹7 lakh and access to EPF and pension benefits, EPFO says maintaining updated nominee records is one of the simplest yet most important steps members can take to safeguard their families' financial future.
MUST READ: Has EPFO cleared a minimum EPS-95 pension hike to Rs 7,500? Here's what pensioners need to know