By Asma Bint Shameem
It is forbidden in Islaam to take out life insurance.
Shaykh Ibn Baaz was asked about insurance, and he said:
"Insurance of one’s life or possessions is haraam and is not permitted, because it involves gharar (buying/selling something where it is not known whether what is being bought/sold will actually be achieved/delivered, or in what specific quantity, thus putting one’s money at undue risk to being lost) and riba (usury, interest).
Allaah has forbidden all transactions that are based on riba, and all transactions which involve deceit, as a mercy to this ummah, and to protect them from that which may harm them. Allaah says:
“whereas Allaah has permitted trading and forbidden Ribaa”[al-Baqarah 2:275]
And it was narrated in a saheeh report that the Prophet Sal Allaahu Alaiyhi wa Sallam forbade deceit. And Allaah is the source of strength."
And Allaah knows best
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