What is the ruling on benefiting from a loan from a company whose contract includes a clause about "life insurance" even though it is not actually applied?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
It is permissible to take a benevolent loan as long as it does not necessitate subscribing to life insurance. The mere presence of a clause in the contract related to insurance, without compulsion from the lending institution or obligation from the borrower, does not prevent it, provided the insurance is commercial. However, if the insurance is a -compliant Takaful, then there is no objection to subscribing to it in principle, nor to it being a mandatory condition for obtaining the benevolent loan.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/174744
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- Ftawy
- Original fatwa ID
- 174744
- 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