EPFO: Can I link my LIC policy with my Provident Fund (PF) account?
Paying your LIC premiums would be easier if you link the policy to your PF account funds. You can avail this facility by submitting the Form 14 at the EPFO office under which jurisdiction your account is operated.
The Employees’ Provident Fund (PF) and Life Insurance Corporation (LIC) policies serve as important assets during unfavourable situations, emergency need of money, and even retirement. Both the EPF and LIC policies are long-term investment plans and can be helpful in your retirement years. While EPF contributions are meant for building a retirement corpus, LIC policies offer dual benefits of savings and insurance coverage.
At times, many policyholders miss to pay the premium within the due date for the LIC policies due to multiple reasons. If you are unable to pay LIC premiums due to financial issues, you can rely on your EPF savings to pay the unpaid premiums.
The Employees' Provident Fund Organisation (EPFO), which manages the EPF savings, allows the members to pay their LIC premiums from the provident fund balance.
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This means that you can pay the LIC policy premiums using your PF savings. Let’s delve deeper into the process of linking your EPF account with LIC policies.
How to link your LIC policy with your PF account?
Investment experts have noted that you need to submit Form 14 at the nearest EPFO office to link your LIC policy with your PF account to pay the premiums in future. You need to fill in the required details and ask the EPF Commissioner to allow payment of LIC premiums using your PF account. However, you need to ensure that at the time of Form 14 submission, the funds in your PF accounts are at least double of your annual LIC premium amount. The facility can be availed while buying the policy or later as well. However, one must note that this facility is limited to LIC premium payments only and other insurance premiums can't be paid through the PF account.
Experts see this as an advantage for salaried employees. Linking your EPF account with LIC policy can ease your financial burden. You can still avail the insurance coverage as non-payment of premium may have caused your LIC policy to lapse. However, the experts suggest that this facility should be used only as the last option and when a person is facing a financial crisis. Moreover, they urge discontinuation of this facility after the financial condition of the policy holder improves.