Answered by Shaykh Yusuf Badat
Is life insurance permitted in Islam?
Jazakumullahu Khayran/ Thank you for your question.
Islamically, life insurance is prohibited due to the elements of interest, gambling and future uncertainty. In almost all insurance cases, the insured who pays the premiums either receives no amount or more than the amounts paid to be insured. There is also no certainty when a person will die or fall ill. Hence these elements of usury, gambling and uncertainty are factors that prohibit the transaction.
Jabir (may Allāh be pleased with him) reported that the “Messenger of Allah (peace and blessings upon him) cursed the devourer of usury, its payer, its scribe and its two witnesses. He also said that they were equal (in sin)” (Sahih Muslim)
“O you who believe! Intoxicants, gambling, sacrifices for idols and arrows for seeking luck or decision are an abomination of the devil’s handiwork. So avoid that in order that you may be successful . . .So, will you not then abstain?” (Qur’an 5:90-91)
There are a number of prophetic supplications for protection and safety. You should resort to those and the Alimghty will keep you, your family and your property in His protection. We pray for your goodness.
And Allah Knows Best