EPFO members can use their EPF balance to pay the premium for their insurance policy with Life Insurance Corporation (LIC) provided certain requirements are met. If you are experiencing a temporary cash problem and are unable to pay the premium on your LIC insurance, you may consider using EPFO's service. It's worth noting that this service is also available for obtaining a new LIC policy. This service is offered by filling out Form 14, which may be found on the EPFO website.
By completing Form 14, you can direct EPFO to pay your LIC premium at the time of purchase or at any time following the initial premium payment.
Form 14 is an application for LIC to finance a life insurance policy using your EPF contributions. This link will take you to Form 14: https://www.epfindia.gov.in/site_docs/PDFs/Downloads_PDFs/Form14.pdf
Once your application is processed, your LIC premium will be deducted from your EPF account on or before the due date
Who is eligible to use this service?
The subscriber's EPF balance must be at least equivalent to two years' worth of LIC premium payments to qualify for this benefit.
In EPFO Form 14, the subscriber must state the number of months he or she has been a member of EPFO as well as the amount credited to his EPF account. You must also state that the funds in your account are adequate to cover two years of your policy's premiums. Form 14 must also include information about your annual donation.
Aside from the above information, the EPF account holder must also provide information about the policy for which he wishes to pay premiums, such as the address of the Life Insurance Corporation branch office or unit where the policy account will be maintained, the Policy/proposal number and date, the sum assured, and the likely date of purchase of the policy.