What to do with a life insurance policy payout?
Question
My brother in law had a life insurance policy and has now passed away. The life insurance company has paid out the money. The heirs do not want it. Is it permissible for me to utilize the money for my own expenses?
Answer
This money should be given to the poor without the intention of receiving any reward. If you are poor, then they can give you the money.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Zakaria Makada
- Checked & approved by
- Mufti Ebrahim Salejee (Isipingo Beach)
Where scholars differ, it’s safer to take the more cautious view.
Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue
For corrections or mistakes, please email us at fatawasa786@gmail.com.
Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/32951
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-32951
People also ask
Is insurance permissible?
“Life insurance policies are Haraam as it is based on interest, gambling and uncertainty (Gharar). Make Taubah and Istighfaar for your mother for engaging in Haraam dealings. There are severe warnings cited in the Mubarak…”
Ibn Masood · 392 fatawa from 7 Darul Iftas on this
What the Darul Iftas sayAre life insurance and funeral policies permissible?
“Life insurance policies are Haraam as it is based on interest, gambling and uncertainty (Gharar). Make Taubah and Istighfaar for your mother for engaging in Haraam dealings. There are severe warnings cited in the Mubarak…”
Ibn Masood · 81 fatawa from 7 Darul Iftas on this
What the Darul Iftas saySame question, other Darul Iftas
The closest match from each Darul Ifta, found by wording. Check that the question matches yours.
Azaadville28 Jul 2026Payout On A Voluntary Life Insurance PolicyIf a person has a life insurance policy which pays out money once the person passes away, will it be…
Ask Imaam12 Apr 2017Is it Permissible to use the Insurance Payout?My farther has taken out insurance on my car which is not compulsory It covered my car incase of an accident…