Life Insurance Policies - Islamic view: Islam awards human life with great prestige and honour. It is contrary to Islamic teaching to dishonour human life by subjecting it to monetary value and commercial interests. Hence from this angle, life insurance is NOT permissible. All forms of commercial insurance are based on uncertainty of the most extreme kind. It may be argued that life insurance is different in the sense that death is certain for every human being. Our answer would be that while the occurrence of death is certain, its exact date is not known and this is enough to render the policy Haraam. The hadith prohibits fixing payment for an item “on the day a certain person arrives”, The arrival of that person is certain, yet the transaction is not valid because his exact date and time is uncertain. If a person had, out of ignorance, taken out a policy and was paying premiums then it is only permissible for him to take back whatever he had paid in premiums, and not permissible to use the excess which the insurance company normally pays out. Such money is Haraam and must be given out to charity as a compulsory measure. May God grant us the guidance we need to correct our wrongs and better ourselves in a humble manner. Insha Allah (God willingly), Ameen.
Posted on: Mon, 17 Jun 2013 06:30:57 +0000
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