Is it permissible for my wife and I to take out a life insurance policy so that if I die, there is no mortgage left? I have a feeling that I should not because I should have faith in Allah. Please clarify the matter.
بسم الله الرحمن الرحیم
Answer:
Life insurance is not permissible because it is interest based and because of the garar (uncertainty) therein. Your feeling is correct that a person should have faith and reliance in Allah Almighty.
قال شيخنا المفتي محمد تقي العثماني في إنعام الباري (٦/٢٧٨) وتقرير ترمذي (١/١٠١) ما تعريبه وحاصله: تأمين الحياة فيه غرر وربوا فلا يجوز، انتهى. وراجع بيمه زندگی للمفتي محمد شفيع وأحسن الفتاوى (٧/٢٣) وفتاوى محموديه (٢٤/٤٥٤) وفتاوى رحيميه (٩/٢٤١) وفتاوى عثماني (٣/٣١٤ و ٣٢٨ و ٣٣٠)۔
Allah knows best
Yusuf Shabbir
15 Jumādā al-Ūlā 1439 / 31 January 2018
Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir