Is it permissible to participate in an insurance company that gives the participant a sum of money it determines after he reaches a certain age, with an annual premium specified for that, and in the event of contract termination, the participant recovers a percentage of his payments that increases with the duration of the contract? And is this type of transaction considered usury?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The Islamic Fiqh Academies have unanimously agreed on the prohibition of all forms of insurance, except for cooperative insurance, because it is a contract of donations. This involves an agreement to pay a specific contribution to compensate for damages that may befall one of them. Life insurance is prohibited due to its inclusion of (excessive uncertainty).
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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Where this answer came from
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- Ftawy
- Original fatwa ID
- 41767
- 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