New Delhi: Your Provident Fund (PF) account, other than being a long term savings scheme, comes with several additional benefits. These benefits are assured by Employee’s Provident Fund Organisation (EPFO) to the subscribers.
One such benefit that a PF Subscriber can avail of is payment of LIC Premium using EPF corpus.
Here is all you want to know about the process of LIC premium payment through EPF account.
EPFO’s FORM 14 allows for the Financing of a Life Insurance Policy out of the Provident Fund Account.
For this you will have to download the FORM 14, address it to the Commissioner of EPF and fill in the required details seeking remittance of your LIC premium from your EPF Fund.
However, this function will be available only till you continue to be a member of the EPFO and have enough account balance to allow for the credit of LIC premium.
Another important requisition is that you shall have to be a member of the EPFO for atleast over two years to be eligible for financing of the insurance premium from the fund.
After duly filling the complete form 14, you can avail the Financing of a Life Insurance Policy facility. But is it wise to spend your EPF money to deposit your LIC premium?
Experts opine that since the EPF the corpus is meant for retirement purpose, you need to think twice before spending this corpus. If you have a big financial crunch, you could think about paying the LIC premium using your EPF corpus. However, you must weigh this option only in the short run and once your finances are back to normal, you should stop using this facility.