How to use EPF money to pay the LIC insurance premium


Facing a cash flow crisis? If you are unable to pay your premiums, you can now finance your LIC insurance premium with money from your Caisse de Prévoyance des Salariés (EPF) account. The facility is available when purchasing the LIC policy or subsequently when paying the premium.

You can ask EPFO ​​to pay the LIC premium at the time of purchase or at any time after payment of the initial premium by completing form 14.

Form 14 is an application for financing a life insurance policy from LIC using your contribution to the EPF account, which you can obtain from the EPFO ​​website. Your LIC premium will be deducted from your EPF account at the latest on the due date once your request has been processed.

You can access form 14 here:

Now let’s see how to benefit from the EPF advance for LIC premium payments.

Who can benefit from this advance

Form 14 must be submitted to EPFO ​​in order to make LIC premium payments from EPF accounts, and the policyholder’s EPF balance must be at least two years of the LIC premium amount.

This is what the EPF Form 14 says:

a) I have been a member of the fund for a period of at least two years which is the minimum period to be eligible for the financing of the insurance policy by the fund.

b) The amount to my credit on my EPF account (my own share) is Rs ……… .. to …………. This is sufficient to make payments to LIC for two years.

c) My annual contribution to the fund is Rs …………… which is sufficient to pay my annual premiums;

d) I also propose to appoint the same person as for the PF

The person must further declare that the policy is free of any charge and that the content of the policy proposal presented is correct.

Here are the details of the policy to be mentioned in Form 14:

1) Address of the branch or unit of the Life Insurance Company where the policy account * is to be kept

ii) Policy / proposal number and date

iii) Amount insured / proposed to be insured

iv) Probable date of purchase

v) If the proposal was accepted and if so, on what date the first premium must be paid

vi) Amount of annual bonuses.

vii) Due date (s) for premium payment.

ix) Date of payment of the last premium.

x) If the age has been accepted. Otherwise, indicate the nature of the proof presented to the Life Insurance Company

xi) Name (s) of nominee (s) under section 39 of the Insurance Act, 1938

xii) Guardian appointed under section 39 of the Insurance Act of 1938 in respect of minor applicants, if applicable.

xiii Details of any previous policies already signed at C BT

Where

“Certified that I have not withdrawn any amount before to finance an insurance policy on my account of the Provident Fund”


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