Is life insurance permitted in Islam?
  • Question:
    Is life insurance permitted in Islam?

    Assalamu Alaikum wa rahmatullahi wa Barakatuh

    Thank you for your question.

    Islamically, life insurance is prohibited due to the elements of interest, gambling and future uncertainty. In almost all insurance cases, the insured who pays the premiums either receives no amount or more than the amounts paid to be insured. There is also no certainty when a person will die or fall ill. Hence these elements of usury, gambling and uncertainty are factors that prohibit the transaction.

    Jabir (may Allāh be pleased with him) reported that the "Messenger of Allah (peace and blessings upon him) cursed the devourer of usury, its payer, its scribe and its two witnesses. He also said that they were equal (in sin)" (Sahah Muslim)

    And Allah Knows Best

    Answered by Shaykh Yusuf Badat
    Hadith of the Day Imam
    Imam of the Islamic Foundation of Toronto and Director of Mathabah Institute
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