Is life insurance generally considered forbidden, or are some cases exempted from this ruling, such as when an insurance company provides group insurance for its employees without premiums from them, whereby upon the death of the insured, an amount equivalent to 30 times the monthly salary is disbursed to the heirs specified in the contract?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If the insurance company is commercial, then it is not permissible to work for it, nor is the salary, bonuses, and benefits, such as group insurance, lawful. This is because it is forbidden to take wages or compensation for forbidden benefits, based on the Prophet's (peace be upon him) saying: "Indeed, when Allah forbids the eating of a thing, He also forbids its price." However, if the insurance company is based on Takaful (mutual cooperation) and adheres to guidelines, then there is no harm in working for it and benefiting from the life insurance it provides to its employees.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/192961
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 192961
- 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