Jamiatul Ulama KZN

Benefitting from a Company Insurance policy

· 20 Rabiʻ II 1444 AH1 min readEnglish

Question

Q. I am working for a company and the company I work for has taken out an insurance policy for me. They are paying for it and I am not paying for it at all. Will the payout be permissible for my beneficiaries? Will it be Halaal?

Answer

In the enquired case, it will be permissible for your beneficiaries to benefit and utilize the proceeds of the Insurance Policy.

This is based on the fact that as an employee, you did not enact or contribute towards the Insurance Policy in any way. It was solely taken out and funded by your company.

Accordingly, the proceeds of the Insurance Policy to your beneficiaries will be regarded as a Gift to your beneficiaries, and thus Halaal and permissible.

And Allah Ta’ala Knows Best

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Source: Jamiatul Ulama KZN — https://jamiat.org.za/benefitting-from-a-company-insurance-policy/
Fatawa SA: https://fatawa.co.za/fatwa/jamiat-35704

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