Life insurance and insurance in general : life insurance policy

Fatawa Question

Assalamu Alaykum Wa Rahmatullahi Wa Barakatuh, Fist of all, May Allah give all of you best reward for the efforts. I have life insurance policy, which is started on 2000 and will mature on 2020.Assured sum is Rs.125,000.00 with premium payment of Rs 2039.00 quarterly. According to the company, my nominee will get assured amount and profit plus bonus, if I died before the maturity date; which may be approximate 550,000 to 600,000 rupees. I approach the agent to cancel the contract as I feel it?s Harram, and then I was asked to continue the policy and keep as savings. And he argues that that extra amount what the company pay, as bonus and profit, is from the share; and it is not from the interest. If I cancel I will not be returned what I already paid. I read the article related to the insurance, in this session, but I confused. That is why I elaborate the matter exactly. So I ask in the name Allah, to guide me in the right path by giving a proper answer. Is it Haram or Halal ? Jazakumullahu Khairan

Fatwa

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Publication Date

2006-11-15

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-787778

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