Is Life Assurance Halal

Question: Is Life Assurance Halal? I know it is used interchangeably with Life Insurance; however, they are not one and the same.

life assurance typically covers you for your entire life and so is often known as ‘whole of life’ cover. Premiums for this type of cover tend to be more expensive than for life insurance as a payout is guaranteed.  This money will be paid to the person paying the premiums or, if the sole life-assured has died, the proceeds will be passed into his or her estate and distributed according to the terms of the will. If there is no will, the sum will be handled according to the laws of intestacy.

If it is permissible, can it be written in trust for a child/children?

If it is not permissible, are there any halal alternatives available to residents of the UK, such as a Takaful Life Assurance policy?



الجواب حامدا ومصليا وميلما ومنه الصدق والصواب

Conventional life assurance products are not halal as they are commutative contracts that involve riba, and gross uncertainty. I am not aware of any halal alternative available to UK residents.


And Allah knows best.

Mufti Mohammed Zubair Butt

Chair, Al-Qalam Shariah Scholars Panel


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