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: FtawySummarized from the full answer at Ftawy · imported 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).
Summarized from the full answer at Ftawy · imported
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