References & Sources
Evidence used to explain the general principle. These references do not replace personal scholar review.
3 Sources & 1 Scholarly Opinions
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The common position is that zakat is due on the surrender value - what you could actually receive if you cashed the policy in today - rather than on the maturity amount or the sum assured. The reasoning is that zakat falls on wealth you own and can access, and the maturity value is a future entitlement contingent on continuing to pay premiums, while the sum assured is a payout on death that is not yours at all during your lifetime. A minority hold that because a policy cannot be surrendered without loss it should be treated like other locked assets and left until maturity. There is a prior question worth separating: conventional endowment policies carry gharar and riba concerns that most scholars regard as making the policy itself problematic. That is a different discussion from how to calculate zakat, and owning something you should not own does not remove the zakat obligation on it in the meantime.
Current direction: Needs Scholar Review. This page needs a qualified scholar to verify the exact ruling before a reader relies on it.
Educational guidance only, not a fatwa. Consult a qualified scholar for your specific case. Page created August 26, 2026.
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Because zakat falls on wealth you own and can access. The maturity value is a future entitlement contingent on continuing to pay premiums - it is not yours yet. The sum assured is a death benefit and is not yours during your lifetime at all. The surrender value is the only one of the three you could convert into money today, which is why most scholars use it.
No, because there is nothing to owe it on. Pure term cover has no surrender value and no maturity benefit - the premiums buy protection for a period and are spent, not saved. There is no accumulated wealth in the policy. Whether term cover itself is permissible is a separate discussion, with takaful being the structured alternative where available.
Ask the insurer directly - it is a routine request and most will provide it in writing or show it on the annual statement. Many now display it in their online portal. Get the figure as close to your zakat date as you can, since it changes as premiums are paid and the policy matures.
Evidence used to explain the general principle. These references do not replace personal scholar review.
3 Sources & 1 Scholarly Opinions
Compare the general position and the details scholars usually check.
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