In this article, we will study how we can make LIC Premium payment via PF. According to a recent update, now EPFO members can make the payment for their LIC policy via an EPF account.
Life Insurance Corporation of India is the country’s biggest insurance provider. Currently, it is under the ownership of the Ministry of Finance. It has more than 100 plans in its kitty to meet the needs of every age group. Their plans are favorite to everyone. Being an Indian, one must be having at least one LIC policy in their lifetime.
LIC Premium Payment
To renew the policy to avail of continuity benefits, investors/insureds have to make premium payments as per the frequency agreed with the insurer. LIC provides different options by which LIC Premium payments can be made.
Currently, policyholders can make payments for premiums via UPI apps, debit cards, credit cards, net banking, LIC Pay Direct app. In addition, it allows cash payment at all IDBI and Axis Bank branches via common service centers operating at the block level.
This has been a challenging time for our Nation and its people. Above all, the Pandemic has hit us harder than ever and yet LIC is trying to keep the true spirit even in these difficult times.
During Lockdown LIC has already provided an extension of one month to all their policyholders whose policies were due for renewal in March/April 2021. As an initiative, the Ministry of Finance has joined hands with EPFO to facilitate LIC premium payment in case of any emergency or financial hardship. Most importantly, it will help you to save your insurance policy from lapsing without borrowing money from friends/family who might also be in the same situation.
Policyholders can opt for this facility while purchasing the LIC policy or afterward when paying the premium.
You can finance your LIC policy premium using your contribution from the EPF account simply by submitting Form 14 to EPFO to deduct the LIC premium from your EPF account on or before the due date of renewal.
How to Pay LIC Premium Payment via PF Account
Currently, this facility is not available online on the EPFO website to pay the LIC Premium. However, in case of a cash crunch, you can simply download Form 14. Fill in the required details seeking remittance of the LIC premium from your EPF account, get the same attested at your employer’s end, and courier it to the Commissioner of EPF. Once this form gets accepted at the EPFO end, your next premium will be paid automatically from your EPF account.
Once EPFO launches this facility online we will help you with that detail soon.
Conditions to fulfill for making LIC premium via PF Account
Here are a few limitations which you should be aware of before relying on this option:
- You should be the member of EPFO for atleast two year to get eligible for financing the lic premium from EPF.
- Your epf amount should be sufficient to make payment of LIC Premium for two years.
- Your annual contribution should be sufficient to pay the yearly premium.
- Should nominate the same person as for PF.
Firstly you need to fulfill all the above conditions to finance the LIC premium payment from your PF account.
Secondly, you need to send the attached filled Form 14. n addition you provide the below details on a piece of paper. After that courier it to the EPF Commissioner address of the zonal address mentioned on the EPFO website.
- Address of the Branch office or unit of the Life Insurance Corporation from where the policy is purchased.
- Policy/proposal No. & date.
- Sum assured
- Date of purchase of the policy.
- Due Date of policy renewal.
- Cost of the policy in case of single premium policy.
- Annual Premium Amount.
- Last premium payment date.
- Proof of identity and age.
- Name of the Nominee.
- Details of previous policy in case availed the same facility. Or provide a declaration stating you have not used this facility prior.
Details of the EPF Commissioner you can find on the EPFO website under the contact us option.
It’s not a wise decision to finance your LIC Insurance Policy from your PF amount. As this amount is meant to meet your retirement needs. Hence, it’s not advisable to deplete the EPF corpus to meet the short-term requirement. Please do think twice before utilizing this corpus. In case of a big financial crisis only, use this corpus for LIC premium. Once your financial health status improves you should stop using this facility.