What is the ruling on group life insurance for which the administration pays the premiums without the employees bearing any part of them, and the insurance company pays a specific grant to the employee's heirs upon death?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The permissibility of insurance depends on its type. If it is cooperative Islamic insurance, then it is permissible. However, if it is commercial, impermissible insurance, then it is not permissible to voluntarily subscribe to it. If an employer subscribes an employee to commercial insurance, the employee or their heirs are permitted to benefit only from an amount equivalent to what was paid. Any excess must be disposed of by giving it to the poor and needy, or by benefiting from it if the person themselves is poor, based on what Al-Nawawi said: that unlawful money, when given to a poor person, becomes lawful for them.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/174542
Where this answer came from
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- Ftawy
- Original fatwa ID
- 174542
- 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