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EPFs V/S Retirement Insurance Plans

Published On Jun 19, 2021 8:32 PM By InsuranceDekho

Employees’ Provident Fund and Retirement Insurance Plans are two of the most convenient and popular methods of savings and investment instruments. They are especially catered to serve your needs once you retire. Since there are usually no active ways of income once you retire, it is necessary to start saving and plan for your retirement early on.

EPFs and Retirement Insurance Plans both have their individual advantages. Take a look at a comparison between these two types so that you can better plan for your retirement.

EPFs V/S Retirement Insurance Plans

The following are some of the key points of comparison between Employees’ Provident Funds (EPFs) and Retirement Insurance Plans.



Retirement Insurance Plans

Organization Body

Employees’ Provident Fund is a statutory body that is regulated and administered by the Government of India.

Retirement insurance plans are provided by various insurance companies. Most of these companies are private bodies.

Eligibility of Members

Only government employees are allowed to invest in EPFs and it is mandatory for them to do so.

Anyone can purchase a retirement insurance plan and become a policyholder.

Minimum Premium Amount

This amount is fixed and regulated by the government and stands at 12% of the employee’s monthly salary.

The premium amount for a retirement insurance plan depends on many factors like your age, health risks, lifestyle habits and more. It is not fixed and differs from person to person.

Partial Withdrawal Facility

Only allowed under the following circumstances:

  • A maximum of 75% of the funds for individuals who have been unemployed for at least a month
  • Special circumstances and reasons that are pre-determined

Most retirement insurance plans do not let policyholders avail for partial withdrawal in the middle of the policy term. You may be penalized if you try to avail of your funds before the policy reaches maturity.

Risks Involved

Since this is administered and assured by the government, it is comparatively free from risks.

The risks are determined by market trends and might impact negatively on your investments and savings.


Since EPFs are not accessible to everyone, retirement insurance plans are an efficient way to save up for your retirement. There are many different retirement insurance plans available to choose according to various requirements. Nevertheless, retirement planning is important and the best-suited method must be selected as soon as possible.

Also read 

Top 6 Retirement Mistakes to Avoid

Best Early Retirement Planning Tips

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.              

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