Is life insurance generally considered forbidden, or are some cases exempted from this ruling, such as when an insurance company provides group insurance for its employees without premiums from them, whereby upon the death of the insured, an amount equivalent to 30 times the monthly salary is disbursed to the heirs specified in the contract?
If the insurance company is commercial, then it is not permissible to work for it, nor is the salary, bonuses, and benefits, such as group insurance, lawful. This is because it is forbidden to take wages or compensation for forbidden benefits, based on the Prophet's (peace be upon him) saying: "Indeed, when Allah forbids the eating of a thing, He also forbids its price." However, if the insurance company is based on Takaful (mutual cooperation) and adheres to Sharia guidelines, then there is no harm in working for it and benefiting from the life insurance it provides to its employees.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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