Employee provident fund is a lifetime investment for salaried individuals in India. This a retirement scheme which helps in investing for future. The salary is deducted a certain percentage where the money is pooled together by the employee provident fund organization.
The money is tax free and gains interest yearly thus increasing the amount by the end of the working years. Indian citizens have embraced the scheme as it benefits both employee and their family members. While opening the account one is required to fill the beneficiary or the nominee. Here they benefit from the scheme in case the employee dies or cannot work due to severe illness. This not the only way employee’s family can benefit. We have other ways where families benefit too.
- Insurance benefit
In the scheme part of the money goes to the insurance scheme. This helps cover life of the employee ad his/her family. This goes long way in case sickness occurs in the family they can use it for medical cover. Most families don’t pay for insurances due to lack of money. This has come in handy as a small fraction of the salary goes to this kitty.
- Special occasions
The scheme comes in for some occasions in your family. If there are financial constrains where a child needs education but can access funds, marriage or even other bigger challenges. The EPF has different conditions which govern such help in the family. Special occasions will get 50% of what you have saved in your account. However, the money refundable andis approved for members in the services for 7 years. ne needs all proof documents to help start the process.
- Building a home
Employee benefit from the schemes getting a home loan where you can build or repair your home. The duration is flexible of 36 months. This happens for employees who have served 10 years. home building will come in handy for the whole family as they will own theirs with no extra cost.
EPF is one of a kind where the scheme provides medical cover for surgical and other several diseases. It allows withdraw of funds 6 times the salary. These benefit families as they don’t have to get worried about hospital bills. Medical cover or emergency covers the whole family in terms of spouse, and children. In some cases, the dependent parents are involved thus easing the burden in the family.
Which is saddening, is demise occurs, the employee’s nominee will benefit from the scheme. The family will gain from the savings and other goodies from the EPF. This will benefit the family relieving them extra expenses.
The above benefits might not seem direct to the family member but they are the most significant benefits from EPF. Nowhere can one find medical covers which are paid with the small amount contributed from salary. EPF is embraced by all workers in all ranks and from both private and public sector. They get to enjoy their retirement years with no worries of where to get funds from.