07-30-2012, 07:27 PM
Calculate Zakat On Long-Term Insurance (Life Insurance) in Ramadan for Every year
Allah (The Glorified and the Exalted- Subhaanahu wa Ta'ala) commands in the Quran, "Take alms out of their property, you would cleanse them and purify them thereby, and pray for them; surely your prayer is a relief to them; and Allah is Hearing, Knowing." [Al-Quran 9:103]
Narrated Ibn 'Umar: Allah's Apostle said: Islam is based on (the following) five (principles): To testify that none has the right to be worshipped but Allah and Muhammad is Allah's Apostle; to offer the (compulsory congregational) prayers dutifully and perfectly; to pay Zakat (i.e. alms); to perform Hajj. (i.e. Pilgrimage to Mecca), and to observe fast during the month of Ramadan. (Al-Bukhari, Vol.1, Book 2, No.7).
Allah has notified some things on whoihc the Zakat is require to pay if you will not then it will effect you in Judgemnt day and in the world to. So Followings are the list of Things on which zakat is Require
[size=14]Zakat On Long-Term Insurance (Life Insurance): [/SIZE]
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.
Allah (The Glorified and the Exalted- Subhaanahu wa Ta'ala) commands in the Quran, "Take alms out of their property, you would cleanse them and purify them thereby, and pray for them; surely your prayer is a relief to them; and Allah is Hearing, Knowing." [Al-Quran 9:103]
Narrated Ibn 'Umar: Allah's Apostle said: Islam is based on (the following) five (principles): To testify that none has the right to be worshipped but Allah and Muhammad is Allah's Apostle; to offer the (compulsory congregational) prayers dutifully and perfectly; to pay Zakat (i.e. alms); to perform Hajj. (i.e. Pilgrimage to Mecca), and to observe fast during the month of Ramadan. (Al-Bukhari, Vol.1, Book 2, No.7).
Allah has notified some things on whoihc the Zakat is require to pay if you will not then it will effect you in Judgemnt day and in the world to. So Followings are the list of Things on which zakat is Require
- Gold and Silver
- Cash
- Stocks
- Mutual Funds
- Stock Options
- Business Merchandise Inventory
- Private Companies, Corporations and Partnerships
- Retirement Plans (401K, IRA, etc.)
- Real Estate Investments in Property Owning Companies
- Accounts Receivable
- Profits from Investments
- Trusts
- Long-Term Insurance (Life Insurance)
- Lump Sum Payments in Terms of Compulsory Pension and Provident Funds
- Severance Package
- Income Tax
- Liabilities which may be deducted
- Buried Precious Metals or Minerals (Rikaz)
- Livestock, Animals, Cows, Sheep, Camels
- Agricultural Produce
[size=14]Zakat On Long-Term Insurance (Life Insurance): [/SIZE]
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.