How to use EPF money to pay LIC insurance premium


Facing a cash crunch? In the event when you are unable to pay your premiums, you can now finance your LIC insurance premium using the money in your Employees’ Provident Fund (EPF) account. The facility is available while purchasing the LIC policy or afterward when paying the premium.

You can instruct EPFO to pay the LIC premium at the time of purchase or at any time after the initial premium payment by filling Form 14.
Form 14 is an application for financing a life insurance policy with LIC using your contribution to EPF account, which you can get from the EPFO website. Your LIC premium will be deducted from your EPF account on or before the due date once your application has been processed.

You can access Form 14
here:
Now, let us see how to avail advance from EPF for LIC premium payments.

Who is eligible to avail this advance

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

Here is what EPF form 14 says:

a) I have been a member of the fund for a period of not less than two years which is the minimum period for being eligible for financing the insurance policy from the fund.

b) The amount standing to my credit in my EPF account (my own share) is Rs……….. as on …………. Which is sufficient for making payments to LIC for two years.

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

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

The person must additionally state that the policy is free of any encumbrances and that the contents of the policy proposal presented are accurate.

Here are policy details to be mentioned in Form 14:

1) Address of the branch office or unit of the Life Insurance Corporation where the policy account* is to be maintained

ii) Policy/proposal number and date

iii)Sum assured/ proposed to be assured

iv)Probable date of purchase

v) Whether the proposal has been accepted and if so, by what date the first premium is to be paid

vi)Amount of yearly premia.

vii)Due date (s) for payment of premium.

ix)Date of payments of last premium.

x) Whether age has been admitted. If not state the nature of proof presented to Life Insurance Corporation

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

xii)Guardian appointed under section 39 of the Insurance Act, 1938 in respect of minor nominee’s if any.

xiii Details of any previous policy already signed to the C B.T

or

“Certified that I have not withdrawn any amount previously for financings any insurance policy out of my Provident Fund account”



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