Guide to Zakat on Insurance Calculation

Z a k a t o n I n s u r a n c e

Zakat

Zakat on Wealth Zakat Fitrah

Zakat on Savings

Zakat on Business

Zakat on CPF

Zakat on Insurance

Zakat on Shares

Zakat on Gold

Zakat on Insurance

Zakat on Insurance

“Surrender Value”

Zakat on Insurance

$5,500 (“Surrender value”)

x 2 . 5 %= $137.50

(Zakat on Insurance)

E.g. Benefit Illustration

Year PremiumsTotal

Death Bene!tTotal

Surrender ValueTotal

1 3,732 10,406 2,116

2 4,666 10,510 2,870

3 5,599 10,923 3,241

4 6,532 11,443 4,046

5 7,465 12,071 4,469

6 8,398 12,811 5,500

Step 1 Step 2 Step 3 Step 4 Step 5

Step 1 Step 2 Step 3 Step 4 Step 5

Obtain nisab value

Step 1

Obtain nisab value

Year PremiumsTotal

Death Bene!tTotal

Surrender ValueTotal

E.g. Benefit Illustration

www.zakat.sg

Year PremiumsTotal

Death Bene!tTotal

Surrender ValueTotal

E.g. Benefit Illustration

Step 1 Step 2 Step 3 Step 4 Step 5

Obtain nisab value

Step 1

Berita HarianMarch 2010

Nisab$4606

Year PremiumsTotal

Death Bene!tTotal

Surrender ValueTotal

E.g. Benefit Illustration

Step 1 Step 2 Step 3 Step 4 Step 5

Obtain nisab value

Step 1

Step 1 Step 2 Step 3 Step 4 Step 5Step 2

Refer to benefit illustration

Year PremiumsTotal

Death Bene!tTotal

Surrender ValueTotal

1 3,732 10,406 2,116

2 4,666 10,510 2,870

3 5,599 10,923 3,241

4 6,532 11,443 4,046

5 7,465 12,071 4,469

6 8,398 12,811 5,500

E.g. Benefit Illustration

Step 1 Step 2 Step 3 Step 4 Step 5

Year PremiumsTotal

Death Bene!tTotal

Surrender ValueTotal

1 3,732 10,406 2,116

2 4,666 10,510 2,870

3 5,599 10,923 3,241

4 6,532 11,443 4,046

5 7,465 12,071 4,469

6 8,398 12,811 5,500

E.g. Benefit Illustration

Step 3

Find the date when nisab is reached

Determine insurance date

Step 1 Step 2 Step 3 Step 4 Step 5

Obtain surrender value

Step 4

$5,500(“Surrender value”)

Year PremiumsTotal

Death Bene!tTotal

Surrender ValueTotal

1 3,732 10,406 2,116

2 4,666 10,510 2,870

3 5,599 10,923 3,241

4 6,532 11,443 4,046

5 7,465 12,071 4,469

6 8,398 12,811 5,500

E.g. Benefit Illustration

Step 1 Step 2 Step 3 Step 4 Step 5

Your Zakat on Insurance is:

$5,500 (“Surrender value”)

x 2 . 5 %= $137.50 (Zakat on Insurance)

Step 5

Year PremiumsTotal

Death Bene!tTotal

Surrender ValueTotal

1 3,732 10,406 2,116

2 4,666 10,510 2,870

3 5,599 10,923 3,241

4 6,532 11,443 4,046

5 7,465 12,071 4,469

6 8,398 12,811 5,500

E.g. Benefit Illustration