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Can I use interest acquired from cancelled life insurance policies to settle interest on my bond and overdraft? Original amount of bond has long been paid off, just basically interest that remains.

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Can I use interest acquired from cancelled life insurance policies to settle interest on my bond and overdraft?  Original amount of bond has long been paid off, just basically interest that remains.

 

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh

If you are poor and needy, you may use the interest earned from the cancelled life insurance to pay off the interest portion of the bond. However, if you are not poor and needy it is not permissible to use the interest to pay it off.

And Allah knows best

Wassalam u Alaikum

Muhammed Zakariyya Desai,
Assistant Mufti

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah

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