EPFO or Workers’ Provident Fund Organisation is world’s largest social safety group, which is answerable for regulation and administration of provident funds, pensions and the obligatory life insurance coverage in India. It will fascinating for an EPFO member to know that she or he will pay its Life Insurance coverage Company or LIC premium from its Workers’ Provident Fund (EPF) account.
In keeping with tax and funding specialists, for LIC premium fee from EPF account, one must submit Type 14 at EPFO and on the time of Type 14 submission, one’s EPF steadiness ought to be at the very least equal to 2 years LIC premium quantity.
Talking on the LIC premium fee facility from EPF account; Pankaj Mathpal, Founder & Managing Director at Optima Cash Managers stated, “An EPFO member is allowed to pay one’s LIC premium from its provident fund (PF) account by submitting Type 14 on the EPFO. Nonetheless, whereas submitting this Type 14 at EPFO, one ought to have a EPF steadiness to the tune of two years of LIC premium quantity.” He stated that one can avail this facility whereas shopping for an LIC coverage or at later stage of the LIC premium fee.
Talking on LIC fee from EPF account; Kartik Jhaveri, Director – Investments at Transcend Capital stated, “To avail this facility one must submit this manner and permit each LIC and EPFO to hyperlink up the LIC coverage and one’s EPF account. Nonetheless, one should ensure that this EPFO facility is on the market for LIC premium fee solely and an EPFO member can’t train this facility for another insurance coverage premium fee.”
Calling this EPFO rule as blessing in disguise throughout monetary disaster; Mumbai-based tax and funding knowledgeable Balwant Jain stated, “This EPFO rule in regard to LIC fee generally is a boon for many who are beneath monetary stress in present Covid-19 disaster and after the emergence of Omicron virus they do not see any hope of revival, they will use their PF steadiness as an choice to proceed one’s LIC coverage.”
Balwant Jain stated that each LIC and EPF is a crucial a part of knowledgeable however LIC fee from EPF account ought to be used solely when there may be any sort of monetary disaster. And one ought to instantly discontinue this facility as soon as the monetary disaster is over.
Supply: Live Mint