Is the deceased absolved of the house debt if Takaful insurance settles it after his death?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The bank's request for the customer to have Takaful (Islamic insurance) on his debt does not affect the validity of the contract, because insurance on debt is among the legitimate guarantees, like suretyship. It is only prohibited if it is a forbidden commercial insurance. Thus, Islamic insurance on debts is permissible, unlike non-Islamic insurance. If the debt is paid to the bank from the insurance on behalf of the deceased, his liability is absolved.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/177874
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 177874
- 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