If the person who receives life insurance pays money and the insuring company is committed to insure him against illness or any incidents, there is no problem. Introduction to takaful theory and practice adnan malik. The growth of islamic finance today is undeniable given its services, product innovation. There is a strong similarity between the life insurance and such schemes.
Allah said, believers have purchased the life of hereafter for the price of this world, besides, life insurance moves a heart away from the prayers, consequently, it undermines allah. As regards life insurance facilities, islamic insurance companies have developed islamic trust funds for social sol idarity, mortgage. Broadly speaking, islamic law deals with our life in terms of our relationship with our. Insurance tameen insurance whether on life, goods, property or any of its numerous types is a contract. Insurance of ones life or possessions is haraam and is not permitted, because it involves gharar buyingselling something where it is not known whether what is being boughtsold will actually be achieveddelivered, or in what specific quantity, thus putting ones money at undue risk to being lost and riba usury, interest. In 23 of the 100 poorest countries in the world, there is currently no identified microinsurance activity. Life insurance from an islamic perspective the islam path. After passing 3 exams i am now a licensed insurance advisor selling accident and sickness insurance for selfemployed andor small business owners.
Life insurance policy concept in islam is insurance halal or haram in islam. I found most of the islamic life insurance company run based on takaful method which means may be mutual risk sharing or guaranty to each other. On top of that as a muslim having a will is super important so that. I wanted to inquire about the islamic point of view on insurance sales. Many scholars criticize the system of conventional insurance as exploitative and unjust. Metlife offers financial protection to the people of bangladesh through a mix of traditional and innovative products such as individual and group life insurance policies, pension schemes, childrens education policy, shariah based takaful saving schemes and accident and health products. In the first constitution of madinah which was drafted by the prophet muhammad. Professor hitti, the distinguished orientalist, writes vividly and on a basis of lifelong scholarship about islam, showing that it is not only a religion but also a state and a culture and that in these overlapping and interacting aspects it is a whole way of life. The official website of the office of his eminence alsayyid ali alhusseini alsistani. Also, examining the takafulu overview of malaysia, the. Learn more about how a dividendpaying whole life insurance policy can be structured for maximum cash value and death benefit here. Is it acceptable in islam to take out health insurance, life insurance, car insurance, etc are there islamic alternatives to conventional insurance programs. On the concern mostly the islamic scholars has on insurance is that its money goes to banking and debt market.
Islamic insurance companies may offer competitively priced products, without curtailing the scope and benefit of insurance coverage made traditionally available to the public by conventional insurance companies. When life knows your down, get up, and turn back to allah. Life insurance policy concept in islam is insurance halal. Find the top 100 most popular items in amazon books best sellers. Not updating the book to include the additional rider makes it less current and less relevant. Dear sirs, i request clarification of the legal status of family life insurance. The attraction to take a life policy seems too strong when one considers the need for economic security in life. Islamic origin of insurance was traced to the life of. He pays premiums so that he receives the peace of mind which is associated with the knowledge that a handsome amount of money will be paid to his family. After passing 3 exams i am now a licensed insurance advisor selling accident and sickness insurance for selfem.
Oct 27, 2019 life insurance is defined as a protection against the loss of income that would result if the insured passed away. Many muslims had long been comfortable buying various types of ins. Typically, a life insurance agent receives anywhere from 30%90% of the amount paid for a policy also known as the premium by the. For several years, i was an analyst for lincoln re, part of lincoln financial group, one of the biggest insurance and financial services companies in the us. Muslim scholars have different opinions regarding this kind of insurance. Kitabalbuyu book of transactions if what is meant by submitting your papers to the insurance company is that you have health insurance, or intend to take out health insurance, you should note that this insurance is haraam, as is socalled life insurance, because the insurance policy in both cases involves ambiguity and a kind of gambling. Insurance is not some sort of compulsory tax, but rather solidarity and helping one another in good works and putting others first both of which islam orders. Professor rifaat is the coauthor of business and accounting ethics in islam, the euromoney bestseller book islamic finance. I want to ask you about islams opinion on life insurance. The only difference between them is that the first one is compulsory. Well, whenever im sad, happy, depressed, confused, or facing any problem.
Muslims scholars views about insurance questions answers. Exploring islam by james anderson ligonier ministries. If in your town there are the 2 kinds of life insurance you must choose the syariaa so it is halal and not haramif your life covered by the conventional insurance it is haram or not allowed. Insurance companies like state life invest the premiums in real estates and earn rental income for its policy holders and declared the profit rate on the income of previous two years income after dedication of. An insurance consultant and trainer with more than 25 years experience shares skills in. Under common interpretations of islamic law, conventional insurance is forbidden in islam. Its mean to ensure some financial benefits to your family in case of some misshappe and major factor is compulsory saving for you future. As well, as part of this contract, the insured person can stipulate that at the end of the period of insurance, the company should give him or someone else the equivalent amount or more than what he himself had paid. People take out insurance policies to protect their homes, furniture, vehicles, and jobs, and they also take out health and life insurance. People will come along and flap their gums a lot about it somehow being a failure to trust in god or something, but this is nonsensical thinking. Dec 12, 2009 insurance is not a selling of life of some one. Having the purpose of providing help and solidarity among the citizens in order to share the risks of life between each other, the first one too, is actually same with the third one. Noor plan noor plan children are a blessing from the almighty and mean a world to you. Does anyone know if life insurance is halal in islam.
In its modern form, insurance was introduced in muslim countries when many of them were occupied by western powers, or when they came under western influence. In the circles of contemporary shariah scholars, there are three opinions about life. Mfs is the holding company for max life, indias largest nonbank promoted private life insurance company. Life insurance specialities prophet is a highly flexible application which is used across a wide range of financial industries. Should the loss occur, the insured makes the claim. Ch 5 family takaful islamic life insurance, pp 233255 downloads. The term policy involves the payment by the insured of modest premiums over an agreed period, say, 20 years, in return for the benefit of his family receiving an agreed large sum of money in the case of his death during that period. Jan 21, 2019 for several years, i was an analyst for lincoln re, part of lincoln financial group, one of the biggest insurance and financial services companies in the us. Buying a life insurance policy so as to leave something, when one passes away, for ones loved ones called beneficiaries who could be ones siblings or children. Islam has not slammed shut this door on its followers since it is a. What is the sharia position on buying and selling life. Technically there is a nothing wrong in insurance since it covers financial risks.
Dec 26, 2015 beema e zindagi life insurance in urdu pdf islamic book containing the information about life insurance what does islam says. Usually the policy holder pays premiums depending on the face value of the policy and. What does islam say about having life insurance policies. If muslim parents want to get life insurance to benefit their children in case of their death, is that allowed. Life insurance policy concept in islam is insurance halal or. Bad things in life open your eyes to those things you werent paying much attention to before. There are many different types of insurance policies. Life insurance as a concept does not contradict the requirements of islam. Feb 16, 2007 the following is a translation of a section from the excellent book the economic system of islam by sheikh taqi uddeen annabhani.
Someone, somewhere, right now is fighting for his or her life. A question and answer session with hadhrat mirza tahir ahmad, khalifatul masih iv ra. James anderson prepares christians to better witness to their muslim neighbors with gentleness and respect, as he surveys the central tenets, history, and practices of the islamic religion. I do not have a steady job and i am not insured through the government or elsewhere. A handbook for life insurance sales professionals who want to make or keep their business practices clientcentered. Islam about insurance state life insurance corporation of. A howto book for customercentered selling in the 21st century. The official website of the office of his eminence al.
Since islam does not recognize the assumption of uncertainty as a salable item, this becomes an example of exchanging a like commodity money in this case. This book is a timely addition by providing a muchneeded overview of the islamic insurance products and their shariah compliant structures. Feb 05, 2018 life insurance policy concept in islam is insurance halal or haram in islam. Islamic model of a life insurance policy is that it is not a policy to insure ones own life but is a elnancial. Rakaan kayali 29 comments insurance is an arrangement wherein the insurer provides protection for the insured in the form of a guarantee of compensation in case a certain adverse event occurs. Dear brother in islam, i want to ask you about islam s opinion on life insurance.
The book explores takaful, an insurance paradigm that is in. Life after death sultan islamic links, discover islam. Islam about insurance state life insurance corporation. Islam is not against the creation of wealth provided that it is earned through lawful means and that one should be committed to paying all religious dues. The private insurances like private life insurance, fire insurance and car insurance that are asked in the question are not permissible if they contain haram forbidden elements. Included in this is the introduction of religious scholars and their special life histories as well as that of officials and other scholars. I know a thing or two about this topic so ill chime in. Except for the basic concept that is misunderstood by a good community of people insurance has countless benefits. The question being answered is regarding islamic beliefs about life i.
To allah we belong, and to him is our return alquran 2. Readers must be thinking what is the point to be excited about islamic quote. An english book regarding life insurance, life insurance and the muslims by aleem khan falaki, life insurance is a protection against financial loss resulting from sudden death, a practical guidance to the muslims, particularly those who are living as minorities. Islamic quotes on being thankful and content with your blessings. Jun 12, 2008 dear jazzy asalamu alaikum in the society there are 2 types of insurance company e. Metlife in bangladesh metlife insurance bangladesh. The views in this book can be considered and applied to constructing an islamic life even if the opinions are pertaining more to the sunni. In islam, there is no need for such a system but since it has the idea of solidarity and mutual assistance, many contemporary islamic scholars regard it permissible. Life insurance is nothing but selling your life for a few dollars. The book uses relevant quranic and sunnah extracts, and the. Concepts and regulatory issues wiley finance book 765 kindle edition by simon archer, rifaat.
A model of life insurance in the contemporary islamic economy jstor. Aly khorshid demonstrates how initial clerical apprehensions were overcome to create pioneering muslimfriendly banking systems, and applies the lessons learnt to a workable insurance framework by which muslims can compete with nonmuslims in business and have cover in daily life. Insurance is just a smart, modern way of managing risk. Encyclopedia of islamic insurance, takaful and retakaful econpapers. Its illegal in many states to refer to a life insurance policy as a bank or to become your own banker. Nations of the world use insurance to raise their communities and advance their peoples. It is not in the quran or ahadith life insurance and the. Moreover, the prophet peace be upon him forbade gharar sale muslim, book on transactions, no. Would muslims seek a religious exemption if the purchase of insurance were required by law. The book provides a comprehensive account of theory and practice of takaful as it. Life insurance is a new contract not known in the history of fiqh. This is where a person pays a fixed premium to an insurer so that in the event of the death of the person insured, a predetermined sum of money will be paid by the insurer to a stated beneficiary or beneficiaries, who are usually the dependents of the insured party.
Max financial services was formed in january 2016, as the result of a three way demerger of max india. Once i was told that a person cannot make money off of another, but i have never been given a definitive answer, nor have i really looked into the matter. But if life insurance provided by any islamic bank then will it be halal where there is not interestriba in it. In general terms, islamic law is the knowledge, discipline, and science of humanitys rights and obligations and of what is good and bad for humanity on the individual and collective levels. There is a life insurance concept in islam called takaful. Because finally, im posting some inspirational and beautiful islamic quotes about life with pictures. The concept and operation of life insurance in the light of sharia. There is nothing whatsoever wrong with life insurance from an islamic perspective. Writing of islam the religion professor hitti describes it as a system of beliefs and practices initially revealed by allah to. Islamic beliefs regarding life insurance urdu youtube. It uses reallife case studies, calculations, and exhibits and narrative research.
Is share market business and life insurance allowed in islam. Apr 28, 2014 beemaezindagi life insurance by mufti muhammad shafi pdf free download beemaezindagi is an islamic urdu book regrading life. Read more asasa plan asasa plan life is the greatest divine gift and gives you the opportunity to live it by fulfilling your continue reading. Could you please explain whether life insurance is permissible from the islamic point of view. The insurance, which is argued about, is the second, which is private business insurance. Nov 02, 2019 in the name of allah, the kind, the merciful.
Islamic insurance products exploring takaful principles. He concluded that all insurance is permissible, as it is a form of cooperation among a group of people to reduce the effects of an adversity that. The definition of guarantee in indonesia state law can be found in verse 16 of law book. In an islamic life insurance policy, if the insured passes away any time before the. And if once enters in life insurance critical illness insurance, disability insurance at right age, the premiums are so minimal and benefits are very high. This reflects the strengths of the consistency brought through the library framework matched with the flexibility of the development environment to accommodate new and innovative demands. I recently immigrated to canada, after 6 months i got an opportunity to interview with a company called abc life insurance. Aug 09, 2009 an english book regarding life insurance, life insurance and the muslims by aleem khan falaki, life insurance is a protection against financial loss resulting from sudden death, a practical guidance to the muslims, particularly those who are living as minorities.
With so much diversity in the muslim world, it is common for people to hold uninformed opinions about islam. In essence, this insurance is similar to the principles of compensation and shared responsibility among the community where all participants guarantee each other against unpredicted future financial risk that would alter the financial situation of participants families. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. Whole life insurance is a mixture of protective insurance and an investment vehicle. The late shaikh mustafa alzarqa, who was one of the top islamic scholars of the 20th century, wrote a book on insurance, looking at all aspects of it. There is no doubt that the objective of insurance is sound, legitimate and wins the approval of islam. While man has been conducting scientific inquiries and research, in the modern sense of the term, for only the. Beema e zindagi life insurance in urdu pdf islamic book containing. In the life insurance, the insured person is guarding his family against becoming destitute in case of his death. Now, deoband ulemas clerics have issued a new fatwa stating that buying life insurance policy or getting property insured is unislamic. They point out that paying money for something, with no guarantee of benefit, involves high ambiguity and risk.
Only 3% of the poor in india and china are insured, and only 0. An insurance policy is a contract which aims at providing compensation for potential loss or damages that are speci. You still have yours, so be thankful and spend it in the obedience of allah s. If the person who receives life insurance pays money and the insuring company is committed to insure him against. Are insurance policies permitted in islam assalaam alaikum warahmatullahi wabarakatuhu insurance of ones life or possessions is haraam and is not permitted, because it involves gharar buyingselling something where it is not known whether what is being boughtsold will actually be achieveddelivered, or in what specific quantity, thus putting ones money at undue risk to being lost and.
263 716 537 1295 1587 618 389 1377 1472 1639 1442 761 569 792 567 610 665 1400 725 79 1067 28 1502 311 1159 209 424 1103 1078 202 901 1427 209 218 754 208 1164 876 330 538