1

Life Insurance

Answered according to Hanafi Fiqh by DarulIftaBirmingham


Answered by: Maulana Javed ibn Nazir Kachhalia


Question


Assalamualaikum,

Is it possible to purchase life insurance and to nominate a person/persons to receive a lump sum of money after a person has died


Is it possible to receive the money if the source of the money was unknown and then later disclosed?


Answer


The answer to this question can be found on our website. This is the link: http://daruliftabirmingham.co.uk/life-insurance-money/


As of courtesy I have pasted the answer for you.


With regards to life insurance, the correct view is that it is impermissible in Islam. There are three reasons for the impermissibility of this:


  1. Interest


The Holy Prophet of Allah Sallallahu Alahi Wasalam has said, “To take one dirham of interest knowingly is worse than committing adultery 36 times.” (Mishkaatul-Masaabeeh p.246 v.1)


  1. There is an element of deception. The insurance contract contains uncertainty due to the amount being paid is not fixed and the time it will occur also being uncertain.


The Prophet of Allah Sallallahu Alahi Wasalam has “forbade deception and uncertainty in transactions.” (Sunan Tirmizi p.233 v.1)


  1. Gambling


Insurance policies require payment of money, thereafter if the following mishaps were to occur a payment would be made. This is a pure form of gambling.  (Raddul Muhtar p.577 v.9)


Therefore the lump sum one has received a life insurance should not be included in the distributing of the deceased’s wealth. However the money you gave in instalments every month is considered halal, hence, it is lawful to use that amount. The haraam insurance money should be given to the poor without the intention of reward. (See Raddul Muhtar p.553 v.9).


Only Allah knows best.


Written by Maulana Javed ibn Nazir Kachhalia


Checked and Approved by Mufti Mohammed Tosir Miah


Darul Ifta Birmingham


This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

Sidebar