The question issue wrote: I am insured by an insurance company with insurance contract. The insurance system is as follows: I pay a monthly sum of 50 pounds for 20 years, after which I get 40,000 pounds. And if I do not complete the period, the heirs whom I specify will receive the installments that I have paid and which are on them, bearing in mind that I cannot withdraw from this amount throughout the insurance policies period. Is this permissible(meaning halal & acceptable in arabic) or forbidden (haram in arabic) should I avoid it, with full explanation reasons & opinion discussed?
The basic article answer: Praise be to God Allah, and blessings and peace be upon the Messenger of God muhammad, and respect upon his family, companions and those who followed him, but after: Life insurance is for the insured to pay an amount - as a fixed installment - to the insured - the insurance company policy - and the insured undertakes according to it to pay a certain considered amount of money when it occurs. An injury or disaster to the insured eye or the heirs is paid a certain amount upon death. And it - like other departments of insurance - is not part of Islam & islam goal (note: shareeah or shariah is Islamic laws) and shareeah is mercy for the muslims believer and the unbeliever equal in modern future and past, because it includes ambiguity(gharar in arabic or uncertainty), consuming people's money unlawfully, and dealing with usury(riba in arabic) or steps or condition leading to riba. As it will come. The Muslim must refrain from this type of contract exists, and if he signed it out of ignorance or otherwise, he must annul it, and he returns to each party what he paid, the Almighty said about usury - which is the head of corrupt contracts. The Islamic Fiqh Council, the Permanent Committee for Issuing Fatwas, and the majority of contemporary scholars have stated that insurance principles is based on an unlawful basis and includes many legal prohibitions,
Including First: The insurance specific contract property rules includes an obscene deception: because what is returned to the first in exchange required for what he paid And the second is not paid in return for what was taken unknown at the time of the contract, and the Prophet, may God’s prayers and peace be upon him, forbade the sale of the uncircumcision.
Second: The contract issues includes a kind of gambling: because of the financial larger increase risk involved, one of the parties may benefit without or without equivalent reward, and he may be harmed without a mistake he committed or caused. This is included in the gambling that God Almighty prohibited.
Third: And in the insurance contract situation, consuming people's money unlawfully: Because in it the money of others was taken without return, and God Almighty said: {O those who believe, do not eat your money among you with vanity} [An-Nisa: 29].
Fourth: It includes an obligation that is not legally necessary: the insured does not cause a danger or does not perform any service, except to contract with the trustee to guarantee (guaranty) the risk - based on its occurrence - in exchange for an amount that he takes from the trustee. It becomes forbidden, and this contract is not without usury in the event of a delay in payment conditions.
Fifthly: that insurance is an interest-based contract, and usury appears in three matters: a) That the insurer pays money in order to obtain more money than it - in the event of an accident or disaster - without a commodity or a benefit, and this is the definition of usury, which is the exchange of money for money and extra. B) that insurance companies invest the money of the insurers with interest; And that by lending them to usurious commercial banks with interest benefits, which is unanimously prohibited. As insurance companies put clients common' money in fund interest-based banks and take forbidden interest on them, they take some of them and pay the insurer some of them if an accident happened to him, and this explains the big difference between what the insurer pays and what he takes. A) That insurance investment companies take interest in the insurer in the event of a delay in payment.
Finally From the above view cover concluded, it becomes clear that life insurance is not permissible to enter into, and you must withdraw the premiums that you have paid to that company, even if that results in deducting part of your money that you paid. Because it includes ambiguity and gambling; And God Almighty said: {And cooperate with righteousness and piety, and do not cooperate in sin and aggression} [Al-Ma`idah: 2] simply consideration with no mutual harms or evil or jahaalah to any one as Islam care about all people to meet with relevant hadith "Neither harm nor harm" is one of the pillars and important apparent foundations of Sharia performing beneficial protective underlying necessity, and God knows best.
