Most-asked question

Are life insurance and funeral policies permissible?

81 fatawa in the archive answer questions on this, from 7 South African Darul Iftas (AskImam, Mufti Online, Azaadville, Ibn Masood, Jamiat KZN, MUBZ and others). Below, each Darul Ifta’s answer is quoted word for word from the opening of one of its fatawa.

Based on the fatawa linked below. Please read the sources and double-check with a Darul Ifta for your situation.

Consult a mufti for your situation. Fatawa SA is a read-only archive and issues no rulings of its own.

What the Darul Iftas say

“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:”

Ibn Masood — Life Insurance · 12 Aug 2026

“Life insurance is totally prohibited under Islamic Law as has elements of gambling and interest as defined by Islamic Law and both these have been prohibited in Quraan-e-Majeed with severe warnings. (Fataawa Mahmudiyyah Vol. 16 Pg. 391).”

Azaadville — Payout On A Voluntary Life Insurance Policy · 28 Jul 2026

“1) All forms of voluntary life insurance are not permissible as they have three prohibited elements in them: interest, gambling and uncertainty. 2) In order for us to advise your friend further could you kindly clary which company does your friend work for? Is it a Muslim company? Kindly send your email to admin@daruliftaa.net.”

AskImam — What is the Mas'ala regarding life insurance? · 4 Jul 2020

“Funeral cover is not permissible on account of it being an insurance plan. In all insurance schemes and contracts, the elements of gambling and interest are found. Hence, it is not permissible for one to take out funeral cover.”

Mufti Online — Funeral cover · 4 May 2024

Quotes are the opening words of each answer as published; the full answer, its conditions and references are on the fatwa page. Answers depend on the exact details of each question.

Read the fatawa

  1. Life Insurance Ibn Masood · 12 Aug 2026
  2. Payout On A Voluntary Life Insurance Policy Azaadville · 28 Jul 2026
  3. Inheriting a Life Insurance Policy MUBZ · 20 Feb 2025
  4. Permissibility of Giving Zakāt to a Life Insurance Policyholder Camperdown · 27 Mar 2023
  5. Is personal life insurance permissible for a person who cannot get car insurance? AskImam · 24 Jan 2023
  6. Taking out a Life Insurance Policy to avoid Estate Duty Taxes Jamiat KZN · 22 Jun 2020
  7. Life Insurance Mufti Online · 2 Dec 2012
  8. Why don’t Muslims subscribe to life insurance? Ibn Masood · 21 Mar 2022
  9. Life Insurance To Avoid Paying Estate Duty Azaadville · 23 Jan 2025
  10. Should I cancel my life insurance policy? AskImam · 13 Sep 2022
  11. Zakaat on Life Insurance Mufti Online · 8 Mar 2012
  12. Life cover to secure a loan Ibn Masood · 4 Jan 2024
  13. Inheritance And Life Insurance Azaadville · 3 May 2021
  14. What is the Mas'ala regarding life insurance? AskImam · 4 Jul 2020
  15. Funeral cover Mufti Online · 4 May 2024

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