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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name of Allah, We praise Him, seek His help and ask for His forgiveness.
Whoever Allah guides none can misguide, and whoever He allows to fall astray,
none can guide them aright. We bear witness that there is no one (no idol, no
person, no grave, no prophet, no imam,
no dai, nobody!) worthy of
worship but Allah Alone, and we bear witness that Muhammad(saws) is His
slave-servant and the seal of His Messengers.
brother in Islam, the zakah will be calculated on the nett worth of the person
which has been in one’s possession for a period of one calendar year.
Question: I am a salaried service man working in a company in
brother, since zakah is due only after one has had possession of one’s 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.
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.
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
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.
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.
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
written of Truth and benefit is only due to Allah’s 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,