Zakaat on Life Insurance

Zakaat is not waajib upon wealth received from the insurance company after the demise of the policy holder. However, if the wealth was received during his lifetime, then he is obligated to pay zakaat of the current year as well as the previous years.

Note: It is impermissible for a believer to involve himself in any insurance policy as the elements of gambling and interest are found. If a person has taken out an insurance policy of any kind, then he should sincerely repent and cancel the contract.