Due to Corona virus, many people’s jobs have been affected and salary has also been cut. In such a situation, they are facing a bad economic situation. PF account can be useful for them at this time.
You know that PF account works for emergency people as well as emergency fund for employed people. This not only accumulates money for the future, and when needed, you can withdraw money from it. But, do you know that you can also pay your installments using a PF account. Due to Corona virus, many people’s jobs have been affected and salary has also been cut. In such a situation, they are facing a bad economic situation. PF account can be useful for them at this time.
According to a report by Money 9, you can pay the premium of LIC’s life insurance policy with the help of PF account. You can pay LIC premiums with the help of a PF account so that you are not a defaulter in the policy and your LIC installment can go on time. In such a situation, we know what this rule is and how it can be taken advantage of…
What is this rule?
This facility can be useful for those whose savings have ended or their expenses have been increased due to some other reason. In this case, if they are not able to pay LIC installment this time, then you can pay it through PF account. To avail the facility, you must first give information about the EPFO. There are two ways to take advantage of this facility, either you inform the EPFO while taking LIC or you can also inform the EPFO about it later.
What do you have to do?
For this, you have to fill Form 14 in the EPFO and this form is available on the EPFO website. Once this form is approved by EPFO, then your LIC will be paid from your account on behalf of EPFO. This will automatically cut LIC’s premium from the EPF account before the installment date.
What are the conditions of this facility?
Only those people who are working for more than 2 years can take advantage of this facility, that means your EPFO account is required to be 2 years. At the time of submitting the application to EPFO, the total amount of contribution to your EPF account is required to be paid as much as you can pay LIC premium for two years. The annual premium of your LIC policy must be less than the amount of your annual contribution to be deposited in your EPF account.
Can we get it closed as well?
Once you use this facility, you can also get it closed. However, many people believe that this should be considered as the last option and should try not to pay from the PF account.
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