New Delhi: Employee’s Provident Fund Organisation or EPFO is responsible for regulating and managing provident funds, pension funds and mandatory life insurance. It is the world’s largest social security organisation, according to a report by Mint. Interestingly, there is a major relief that EPFO provides to its members. They can pay their LIC premium from their EPF account.Also Read - EPFO: A Step-By-Step Guide To Withdraw Money Twice From Your Provident Fund Account
According to Mint, experts say that a person needs to submit Form 14 at EPFO. The only condition is that the balance in one’s EPFO account should at least be equal to two years of LIC premium amount. The facility can be availed while buying a LIC policy or while paying the premium amount. Also Read - Life Insurance Policy: Recovered From Covid? Wait Three Months To Buy New Policy
The report further said that the individual must allow EPFO and LIC to link their insurance policy and the EPFO account too. A member cannot exercise any other insurance premium payment through EPFO. Also Read - Provident Fund: Here’s How Employees Can Transfer PF Balance From One Company To Another | Follow Step-by-step Guide Here
The rule is expected to be a boon for the people who are under financial stress due to the Covid-19 pandemic. They can avail their EPFO balance to secure the future of their family via LIC.
Some experts, according to the report, however, believe that the LIC payment should be made through the EPFO account only when there is a financial crisis. They go on to say that once the pandemic and the crisis is over, this facility should be discontinued.