All You Need to Know about EPF Form Number 14 – Steps, Benefits, Purpose and More

What the recent pandemic has taught everyone is how much necessary it is to have life insurance. LIC provides financial security to you and your family. But with all the expenses, you will likely fall short of money and cannot pay the policy. In that scenario, you can use EPF Form-14 to finance your LIC. You must be wondering – what is this form, how to use it, etc. Don’t worry we’ve got you covered. Below are the solutions to all your queries.

What Exactly is EPF Form 14?

Let us first understand the basics of EPF Form 14. Below, you will get to know about the fund contribution and the company’s rules and regulations that are mandatory in order to avail the benefits of EPF Form 14. 

• EPD Form-14 is a provident withdrawal form where the employer and employee contribute about 12% to your provident fund. Form 14 is also one such category under the provision of the EPF (provident fund scheme).

• An organisation having more than twenty employees must register for the EPF scheme. 

• Employees who get a salary of Rs 15,000 are supposed to opt for this scheme under the PF Act. It is an investment fund typically set up in order to pay LIC from your PF.

Purpose Behind EPF Form 14

The primary aim of this form is to encourage employees to save funds during their tenure in an organisation.  This form offers schemes for both national and international employees. It is deducted monthly from the employee’s salary and the employer’s contribution. This helps save a big amount of money in the long run. Since an intern or trainee is not considered a full-time employee, EPF is not deducted from their stipend. After your form is successfully filled, your employer will deduct 12% of your basic salary and dearness allowance and mark it as your contribution to the salary slip.   

Salient Features : EPF Form 14

This form’s first and most beneficial feature is that your LIC can be paid using EPF Form 14. This form is literally like a safety net. But there are some other alternate features of this form as well. These are :-

• The second feature is that you and your employer or vice-versa make the amount to your PF.
• It reduces the burden on the employee as only part of it is deducted from their base salary. It is like the equivalent of the 401 (k) and social security system used in the United States.
• The premium amount is deducted from your EPF account. This procedure takes place on or before the due date once your application has been processed.  Suppose, you join a new organization, then you can simply transfer your account to your new employer. If you are not employed at any moment, you can earn interest on your PF amount even then. 

Steps to Fill out EPF Form 14

You must follow the steps below to fill out EPF Form 14. After following this step-by-step guide, you can easily use the amount in your PF account to pay life insurance policy premiums. 

1. In case, you want to pay your LIC premium amount through your PF, you have to fill out the EPF Form 14. This form is otherwise called the application form for financing LIC out of the Provident Fund account. 

2. EPS Form 14 comprises three pages consisting of various details such as –

• EPF subscriber name
• LIC policy number
• Premium amount 
• Insurance Sum Assured and other necessary questions 

3. Once you fill out the form, it has to be attested by your employer. The first page has a set of guidelines that you should read to understand the terms and conditions of this particular scheme. 

4. After getting it attested, you must submit it to the EPF Commissioner. 

Benefits of EPF Form 14

As discussed above, EPF Form 14 has a lot of benefits. These benefits might help you with issues related to your life insurance payments.     

• First and foremost, you have a fixed amount saved in your bank account every month. This assures you that you have a sum which you can use in case of some unforeseen financial obligations. 

• Secondly, in case you are facing a fund crunch, you can avail of this form as reimbursement to meet your LIC premium deadline. 

• Thirdly, even your organisation will have a sense of security that its employees can finance their life insurance policy as part of the welfare of their employees. 

• Also, even if you do not claim this amount, it can be saved in your PF account. Since life insurance reduces the burden on your pocket as it’s known that hospital bills cost a fortune. 

• That is when medical life insurance comes in handy. Hence, we can say that EPF Form 14 keeps your policy in action by making on-time payments regularly. This helps you avoid becoming a policy defaulter. 

Conclusion

EPF Form 14 is another type of  EPF claim form where you can use your PF amount to finance your LIC premium. It aligns with the Employees Provident Fund and Miscellaneous Provisions Act 1952. Being a PF account holder, you have many benefits, from applying for a loan against your PF account to pension provisions. You also gain interest in your PF, so it’s advised not to completely withdraw the credit. Transferring your EPF Form 14 to your new employer when you switch to another organisation is better. The reason for this argument is that about 12% of your base salary gets deducted every month, which implies that your insurance amount will also increase in case of a salary hike.

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