12.13. Long-Term Insurance (Life Insurance)
AddThis Social Bookmark Button


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.


12.12 Trusts

12.14 Lump Sum Payments in Terms of
Compulsory Pension and Provident Funds



Sitara-e-Isaar Awarded to Hidaya Foundation

The partner organization of Hidaya Trust, Hidaya Foundation was awarded Sitara-i-Eisaar (Star of Sacrifice) by the Government of Pakistan, in recognition of the results-oriented relief efforts of both the organizations during the 2005 earthquake in Pakistan. It was awarded during a special ceremony held at the Embassy of Pakistan in Washington, DC.

In Keeping with our commitment to the communities in which Hidaya Trust operates, it hires its work force as an equal opportunity employer.  It means that employment decisions are based on merit and business needs and not on race, color, status in the society, ancestry, sex, age, religion, creed and marital status.