Question:
Is being the beneficiary on a life insurance policy haram and what about if you take the capital and give away the interest?
Answer:
First of all, becoming involved/taking out a life insurance policy is not permissible. However, if one was taken out in the past, and a person becomes a beneficiary, then he will be allowed to take the capital since this is the premiums which were paid by the client, and he must give away the interest.
And Allah knows best.
Mufti Waseem Khan