Income tax is payable to government and life insurance is from government.My policy’s name is money back in which they will return my deposited amount and after the policy ends they would give me some bonus which is not fixed and depends upon company’s bussiness. Thus no intrest is involved.
Since your intention is to reduce your income tax burden and no interest is allowed, you may take out this particular policy as a ?savings scheme?. As far as you are concerned, let them call it what they wish.
Once the policy matures at the end of the period, you may take back what you invested and also the bonus ? this will be as a gift from the government.
and Allah Ta’ala Knows Best
and Allah Ta’ala Knows Best
Mufti Muhammad Kadwa
FATWA DEPT.
CHECKED AND APPROVED: Mufti Ebrahim Desai