I have invested in Life Insurance Policy for the purpose of saving Taxes. My intention is that I will retain the original amount invested by me and will donate the interest from this Policy. In this situation, is it permissible for me to invest in Life Insurance Policy?
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
It is not permissible to invest in a life insurance policy even if the intention is to merely use the policy as a means of saving taxes.
And Allah knows best
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah