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Zakat on Insurance

Conventional insurance: Zakat is 2.5% of the surrender value at the end of the year when Haul and Nisab are reached.

How to Calculate Zakat on Insurance

Steps

Step 1:   Find out the Nisab value by visiting www.zakat.sg or from the Berita Harian / Berita Minggu. Step 4:   Find out the surrender value from your insurance statement or insurance agent when Nisab is reached.
Step 2:   Ask for your current insurance statement from your insurance agent. Step 5:
 
Your Zakat Insurance is surrender value ($) x 2.5%
 
Step 3:   Determine the start date of the insurance plan and the date when Nisab is reached.

Example for Zakat on Insurance (Convensional)  

Plan: Asia Biennial Choice
Sum assured: $10,000
Payable term: 21 years
Payment type: Giro payment

Annual Premium Semi-Annual Premium Quaterly Premium Monthly Premium
$933.10 $484.10 $242.05 $80.75
Today's Nisab (e.g): $5,677  

End of
Policy
Year
 
Premiums
Total
($)
 
Death Benefit   Total
($)

 
Surrender Value   Total ($)
Guaranteed
($)
 
Non-
Guaranteed
($)
 
Guaranteed
($)
 
Non-
Guaranteed
($)
 
1 933 10,000 100 10,100 0 0 0
2 1,866 10,000 201 10,201 0 0 0
3 2,799 10,000 303 10,303 1,673 121 1,794
4 3,732 10,000 406 10,406 1,948 168 2,116
5 4,666 10,000 510 10,510 2,651 219 2,870
6 5,599 10,000 923 10,923 2,966 275 3,241
7 6,532 10,000 1,443 11,443 3,711 335 4,046
8 7,465 10,000 2,071 12,071 4,069 400 4,469
9 8,398 10,000 2,811 12,811 4,859 641 5,500
10 9,331 10,000 3,662 13,662 4,849 1,227 6,076
11 10,264 10,000 4,048 14,048 5,671 1,410 7,081
12 11,197 10,000 4,439 14,439 5,694 1,607 7,301
13 12,130 10,000 4,833 14,833 6,550 1,819 8,370
14 13,063 10,000 5,232 15,232 6,193 2,047 8,240
15 13,997 10,000 5,634 15,634 7,070 2,547 9,617
16 14,930 10,000 6,040 16,040 6,733 2,839 9,572
17 15,963 10,000 6,451 16,451 7,633 3,152 10,785
18 16,792 10,000 5,865 15,865 6,903 3,488 10,391
19 17,729 10,000 7,284 17,728 7,809 3,848 11,657
20 18,662 10,000 7,707 17,707 7,086 4,658 11,744
21 19,595 10,000 8,134 18,134 10,000 8,134 18,134

The surrender value that has reached the Nisab is $6,076 in year 10.
My Zakat on Insurance for this Haul is:
= $6,076 x 2.5%
= $137.50