PF account is not just savings! From free insurance of ₹ 7 lakh to lifelong pension – know those 5 benefits that most people do not know

New Delhi. If you think that your PF account is just a lump sum amount to be received after retirement, then you are unaware of its biggest benefits. Your EPF account provides five such amazing facilities to you and your entire family for which you do not have to pay a single rupee separately.

1. Free life insurance up to ₹7 lakh—not a single penny premium

Under EDLI i.e. Employees’ Deposit Linked Insurance Scheme, PF account holders get an insurance claim of Rs 2.5 lakh to Rs 7 lakh in case of death while on the job. The most important thing is that the entire expense is borne by the employer and the employee does not have to pay any separate premium. This is an insurance cover which is available automatically and most people are not aware of it.

2. You will get lifelong pension after working for 10 years.

Out of 12 percent contribution of the employer, 8.33 percent is deposited in EPS i.e. Pension Fund. If you have completed a total of 10 years of service, then after the age of 58 you become entitled to a monthly pension for life. After the death of the member, this pension continues to be received by the spouse and children also.

3. No need of bank in emergency, withdraw advance from PF

There is no need to panic if there is a sudden financial crisis. You can withdraw non-refundable advance from your PF account for construction of a house, children’s education or marriage and treatment of serious illness. In case of job loss, the facility to withdraw 75 percent of the amount after one month is also available.

4. Higher interest than PPF and FD – 8.25% per annum

For the financial year 2025-26, the government has fixed the interest rate on EPF at 8.25 percent, which is often higher than PPF and bank FD. This rate, along with compounding, increases your savings tremendously in the long run.

5. Triple tax exemption – Investment, interest and maturity, all three are tax free.

On the income tax front, EPF account comes under EEE category. The amount invested is tax exempt under Section 80C, there is no tax on interest and the entire amount received on maturity is also tax free. To take full advantage of all these benefits, keep your UAN linked to Aadhaar and complete the e-nomination.