Home Zakat Information 12.13 Long-Term Insurance (Life Insurance)
Zakat Information
12.13. Long-Term Insurance (Life Insurance)
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Long-Term Insurance (Life Insurance)


The Muslim jurists are unanimous that most prevailing classes of insurance are not permissible under Islamic Law. In the case of such insurance, the insured is entitled only to the premiums paid by him over the period of insurance. Upon receipt of the indemnity or insured amount Zakat must be paid on the total amount of the premiums paid over the period of insurance (in other words, Zakat is paid for the preceding years as well). The surplus (difference between amount of indemnity and premiums paid) must be given to charity, without an intention to receive reward for the payment. During the currency of insurance policy, it is preferable to pay Zakat on the total cumulative amount of premiums which have been paid.


12.12 Trusts

12.14 Lump Sum Payments in Terms of
Compulsory Pension and Provident Funds



Sitara-e-Isaar Awarded to Hidaya Foundation

Hidaya Foundation was awarded Sitara-i-Eisaar (Star of Sacrifice) by the Government of Pakistan, in recognition of the results-oriented relief efforts during the 2005 earthquake in Pakistan.

Combined Federal Campaign

Hidaya Foundation is a non-profit 501(c)(3) with FEIN 77-0502583. All cash and in-kind donations are tax deductible. Hidaya puts it’s best effort to utilize the funds donated for a specific project, sometimes circumstances dictate we use funds otherwise.