Life Insurance
QUESTION:
My mother has taken out 3 life insurance policies for 3 of us siblings. My mother lives with my brother who takes care of all her needs. We have explained to her that this is wrong and that upon her passing, we will not be able to partake of that payout. What is the punishment for this act and how else can we dissuade my mother from paying into this insurance?
ANSWER:
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 Ahaadith for engaging in interest-bearing transactions and contracts. See below:
حَدَّثَنَا قُتَيْبَةُ، حَدَّثَنَا أَبُو عَوَانَةَ، عَنْ سِمَاكِ بْنِ حَرْبٍ، عَنْ عَبْدِ الرَّحْمَنِ بْنِ عَبْدِ اللَّهِ بْنِ مَسْعُودٍ، عَنِ ابْنِ مَسْعُودٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَيْهِ وَكَاتِبَهُ
.
”The Messenger of Allah Sallallahu Alaihi Wasallam cursed the one who consumed Riba, and the one who charged it, those who witnessed it, and the one who recorded it.”
عن عبد الله بن حنظلة رضي الله عنهما قال: قال رسول الله صلى الله عليه وسلم: «درهم رباً يأكله الرجل وهو يعلم أشدُ من ستةٍ وثلاثين زنيةً» رواه أحمد
The Messenger of Allah Sallallahu Alaihi Wasallam said, “A dirham of usury that a man knowingly consumes is worse than thirty-six acts of adultery.”
The payout of the life insurance policy constitutes:
a) Premiums paid by your mother towards the insurance policy
b) Surplus amount
You may redeem the premiums which were paid towards this insurance policy. The surplus from the insurance policy is Haraam and must be disposed of to the poor and needy.
آپ كى مسائل اور ان كا حل 6/255 تا 259
فتاوى محمودية 30/132
فتاوى محمودية 24/456
فَإِنْ عَلِمَ عَيْنَ الْحَرَامِ لَا يَحِلُّ لَهُ وَيَتَصَدَّقُ بِهِ بِنِيَّةِ صَاحِبِهِ – حاشية ابن عابدين (رد المحتار) (5/ 99)
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Ahmed Saeed
Date: 19 Safar 1448 / 04 August 2026
CHECKED AND APPROVED BY:
Mufti Yacoob Vally Saheb