Is it permissible to get life insurance to pay off debts in the event of death?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the purpose of insurance is to settle a debt in case of inability to repay it until death, then this is not permissible. This is because the insurance company, in this scenario, acts as a guarantor for the debt, and it is not permissible for a guarantor to charge a fee for their guarantee. The debt can be secured for the creditors through collateral (rahn). It is important to pay attention to terminology in contemporary transactions, as it may conflict with the meanings prescribed by Islamic law.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/61926
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 61926
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy