LIC Premium: Don’t Have Money to Pay Your LIC Premium? Your PF Account Can Help
If you’re facing a temporary financial crunch and are worried about missing your lic premium payment, there’s good news. Many policyholders are unaware that they can use money from their Provident Fund (PF) account to pay insurance premiums, including LIC policies, under certain conditions.This facility can help you keep your life insurance policy active without defaulting, even during difficult times.Can You Use PF Money to Pay lic Premiums?Yes. The Employees’ Provident Fund Organisation (EPFO) allows members to withdraw a portion of their PF balance for specific purposes, and life insurance premium payment is one of the permitted reasons.This is allowed under EPF advance/partial withdrawal rules, provided eligibility conditions are met.Who Is Eligible to Withdraw PF for lic Premium Payment?You can withdraw PF money to pay lic or other life insurance premiums if:
Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
- You are an EPF member
- You have completed at least 2 years of service
- The insurance policy is in your name, your spouse’s name, or your children’s name
- The PF account is active and linked with Aadhaar
- You can withdraw up to 6 months’ basic salary + DA or
- The total employee contribution with interest,
- Whichever is lower
- ✅ Prevents policy lapse due to non-payment
- ✅ No need for loans or borrowing money
- ✅ Quick online process
- ✅ Useful during medical emergencies or job transitions
- PF withdrawal should be used only as a last resort, as it affects retirement savings
- Ensure your bank account, Aadhaar, and PAN are correctly linked with EPFO
- Partial withdrawals are tax-free if EPF conditions are met
- Policy may lapse
- Insurance coverage stops
- You may lose accumulated benefits
- Revival later may require penalty, interest, or medical tests
Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.