In my Final Salary Pension there is a ‘death in service’ agreement, whereby lifetime assurance cover is payable which is 4 times the salary value. This is paid by the employer an no contributions are made by the employee. Is it permissible for my spouse to receive this lump sum?

Q: In my Final Salary Pension there is a ‘death in service’ agreement, whereby lifetime assurance cover is payable which is 4 times the salary value. This is paid by the employer and no contributions are made by the employee. Is it permissible for my spouse to receive this lump sum?

 

الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب

 

A: This is part of the remuneration for service and forms a part of your employment contract.  This suffers from uncertainty as the final payment is unknown.