Zakah on life insurance amount
Mu' meneen Brothers and Sisters,
As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)
One of our brothers/sisters has asked this question:
Dear Burhan Bhai Assalamoalaikum wa rahmatullah.
I have a question on zakat if you please clarify it, l would be so grateful to you.
I am a salaried service man working in a company in
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Beloved brother in Islam, the zakah will be calculated on the nett worth of the person which has been in ones possession for a period of one calendar year.
Question: I am a salaried service man working in a company in
Beloved brother, since zakah is due only after one has had possession of ones excess wealth for a period of one calendar year; and strictly on the basis of your message, only the first monthly saving of Dhs. 3,250.00 has its zakah of 2.5% or Dhs. 81.25 due; as that is the only amount which has technically been in your possession for a period of one calendar year.
You can either pay this amount of Dhs. 81.25 every month as zakah from now until next Ramadan; or if you wish, you can pay all your zakah for the whole coming year (Dhs 975.00) instead of remembering to pay it every month.
Your Question: Moreover I paid Idian Rs 85000/- to LIC last year in October and again this year I paid Rs 85000/- to LIC so will the zakat be valid on both the amounts.
Beloved brother, although you have not specifically asked, but it is our duty as your brothers and well wishers in Islam to inform and warn you that it is the unanimous opinion of all the scholars of all the schools of Islam that life insurance in its present form is absolutely forbidden to the believers who sincerely believe in Allah and the Last Day.
To answer your specific question, the first payment of INR 85,000.00 you paid last October 2002 has now been in your possession for a period of one calendar year; and the zakah will be due on it at a rate of 2.5% which is INR 2,125.00.
You have not specified if the second installment of INR 85,000.00 which you have paid this year had been in your possession for a period of one year or not. If yes, then the zakah will be due on it; and if not in your possession for one year, then the zakah on it will be due on it at the completion of the amount being in your possession for a period of one calendar year.
Whatever written of Truth and benefit is only due to Allahs Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.
Your Brother in Islam,