Darul Iftaa Mahmudiyyah

Can Life-Insurance policy be taken in a non-muslim? Is there any fatwa regarding it? How else can we invest to make savings and avoid tax according to Islam?

· 16 Shawwal 1424 AH1 min readFatwa 10360English

Question

Since recently I have started earning, lots of Life Insurance companies are approaching me for future savings and so on. It so happened that to one of the companies representative i told frankly on phone that "this is not allowed in our religion".He was taken aback and gave the phone to his managaer who incidently happened to be a muslim. He said that he is aware that LI is not allowed but in a country ruled by non-muslims , muslims are allowed to take Life-Insurance. And he also has a copy of fatwas issued by three mosques in India confirming this fact.He has kept this to answer the queries raised b by people like us. I still don't believe this but he has asked me to enquire further on this matter. What is your opinion regarding this? We stay in India where muslims are a minority and not given much opportunities. Kindly help me in this matter so that i can tell him the right answer.

Answer

According to Shari?ah, all conventional insurance policies are Haraam (strictly prohibited). They contain two elements; interest and gambling, both of which are expressly prohibited in the Qur?aan.

The prohibition of all conventional insurances is general ? in a Muslim country as well as in non-Muslim countries. You should request the Muslim agent to forward to you the three Fatwas. Once you receive them, kindly forward to us and we will be glad to discuss the issue with the relevant Muftis.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/10360
Fatawa SA: https://fatawa.co.za/fatwa/askimam-10360

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