Darul Iftaa Mahmudiyyah

the company contributes to the Group life Assurance policy fund monthly.If I pass away, the company will compensate my wife with a huge lump sum.

· 23 Shaʻban 1427 AH1 min readFatwa 14557English

Question

I am currently working for a corporate company. One of the benefits that is compulsary is the Group life Assurance policy.

I do not contribute anything from my side, however the company contributes to the Group life Assurance policy fund monthly.If I pass away, the company will compensate my wife with a huge lump sum.

Please advise if the above money will be Halaal or Harram (Bearing in mind that I do not contribute to this fund).

Answer

We hope you well.

According to Shariah, it will be permissible for your wife to accept the pay out of the fund after your demise. Since the company is contributing on your behalf, the pay out will be considered as a Hiba (gift) to her. Therefore, the gift is permissible and halaal to use.

And Allah Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/14557
Fatawa SA: https://fatawa.co.za/fatwa/askimam-14557

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