EPFO guidelines enable LIC premium cost from EPF account. Here is how
EPFO or Employees’ Provident Fund Organisation is world’s largest social safety group, which is chargeable for regulation and administration of provident funds, pensions and the necessary life insurance coverage in India. It would fascinating for an EPFO member to know that she or he pays its Life Insurance Corporation or LIC premium from its Employees’ Provident Fund (EPF) account.
According to tax and funding consultants, for LIC premium cost from EPF account, one must submit Form 14 at EPFO and on the time of Form 14 submission, one’s EPF stability must be no less than equal to 2 years LIC premium quantity.
Speaking on the LIC premium cost facility from EPF account; Pankaj Mathpal, Founder & Managing Director at Optima Money Managers mentioned, “An EPFO member is allowed to pay one’s LIC premium from its provident fund (PF) account by submitting Form 14 at the EPFO. However, while submitting this Form 14 at EPFO, one should have a EPF balance to the tune of two years of LIC premium amount.” He mentioned that one can avail this facility whereas shopping for an LIC coverage or at later stage of the LIC premium cost.
Speaking on LIC cost from EPF account; Kartik Jhaveri, Director – Investments at Transcend Capital mentioned, “To avail this facility one needs to submit this form and allow both LIC and EPFO to link up the LIC policy and one’s EPF account. However, one must make sure that this EPFO facility is available for LIC premium payment only and an EPFO member can’t exercise this facility for any other insurance premium payment.”
Calling this EPFO rule as blessing in disguise throughout monetary disaster; Mumbai-based tax and funding skilled Balwant Jain mentioned, “This EPFO rule in regard to LIC payment can be a boon for those who are under financial stress in current Covid-19 crisis and after the emergence of Omicron virus they don’t see any hope of revival, they can use their PF balance as an option to continue one’s LIC policy.”
Balwant Jain mentioned that each LIC and EPF is a crucial a part of knowledgeable however LIC cost from EPF account must be used solely when there’s any form of monetary disaster. And one ought to instantly discontinue this facility as soon as the monetary disaster is over.
Subscribe to Mint Newsletters * Enter a legitimate e mail * Thank you for subscribing to our publication.
Never miss a narrative! Stay related and knowledgeable with Mint.
Download
our App Now!!