Darul Iftaa Mahmudiyyah

It is not permissible to invest in a life insurance policy

· 20 Rabiʻ I 1429 AH1 min readFatwa 16495English

Question

I have invested in Life Insurance Policy for the purpose of saving Taxes. My intention is that I will retain the original amount invested by me and will donate the interest from this Policy. In this situation, is it permissible for me to invest in Life Insurance Policy?

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh

It is not permissible to invest in a life insurance policy even if the intention is to merely use the policy as a means of saving taxes.

And Allah knows best

Wassalam

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

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 Darul Iftaa Mahmudiyyah. 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: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/16495
Fatawa SA: https://fatawa.co.za/fatwa/askimam-16495

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 say
Are 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 say

Related fatawa