Mufti Sahab Assalam O Alaikum This query is regarding ULIP Plan for Investment.In ULIP your money is invested one time or periodically (ie monrhly, yearly etc) in some selected group of companies for long term at least 3 to 5 years and your money grows depending upon the share price and profit of the companies selected. Recently Tata & Taurus has launched this plan with companies which are shariah compliant. Apart from this a fix non returnable amount is charged for providing your life insurance coverage. Are such type of ULIP plans lawful as per shariah?
Answer:
(Fatwa: 1392/1135=L=1430)
You did not write the detailed procedure of the company, you just said that the plan was launched with companies which are Shariah compliant. This is not enough to explain the matter. All the companies make such claims, but they do not comply the Shariah rulings. Moreover, this plan includes life insurance which is unlawful as per Shariah; therefore partaking in the plan is not lawful.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband