My father has a life insurance policy which started in 1989 and came to an end in dec 2010. we were supposed to pay around 7000 every six month. we stopped paying these installment in 2005 after knowing that life insurance is not permissible. we paid around 225000 in installments. we took a bonus of 50000(one of the four bonuses) when it was available in 1998. at the end of the policy in 2010 insurance company is paying us 475000. I would like to know how much of the total amount is halal for us to have? and how should we treat the rest of the amount which is not halal. Can we give it to our poor relatives without any niyat of sawab?
Answer:
(Fatwa: 760/279/TL=1432)
In the case mentioned above, you are permitted to receive only the amount which your father deposited. You deposited total 2.25 lakh rupees and received the bonus of 50,000 and 42,000 as instalment, so now you are entitled to receive only 1,33,000. You should give the remaining amount in charity to the poor and needy ones without an intention of reward.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband