Monday, December 11, 2023
No menu items!

Life insurance and the heirs

Fatwaa ID: 573

Question:
السّلام عليكم و رحمة الله و بركاته
Mufti sahab

A husband invested Indian Rupees 20 Lakhs in LIC ( Life insurance corporation) policy and now that base amount of 20 Lakhs compounded and it became Rupees 65 Lakhs .

Then Husband passed away .

Now the wife took out 65 Lakhs and kept base amount of 20 lakhs .
Wife knows that Profit from LIC is doubtful .

So wife wanted to know :

1) Where she can utilize the profit amount of 45 Lakhs ?
Or
2) or what are the different ways she can utilize or donate 45 lakhs ?
3) Can the wife give the partial or full amount to needy family member

Can you please answer this

جَزَاكَ اللهُ خَيْرً

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

May Allaah Ta’aala forgive the deceased for his shortcomings. We commend the wife for being upright and doing the right thing. The capital/premium amount is permissible and will form part of the estate. It will not go to the assigned beneficiary only. Rather, it will be divided according to the respective Shari’ah stipulated shares. The profits however are haraam and must be given away in charity without any expectation of reward. This should ideally be given to poor and needy Muslims who are eligible to receive zakaah. This includes eligible needy family members.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

07/22/1444 AH – 02/13/2023 CE | AMG3-3344

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

__________________
Disclaimer

Darul Iftaa New York answers questions on issues pertaining to Shari’ah. These questions and answers are placed for public view on askthemufti.us for educational purposes. The rulings given here are based on the questions posed and should be read in conjunction with the questions. Many answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation. 

Darul Iftaa New York bears no responsibility with regard to its answers being used out of their intended contexts, nor with regard to any loss or damage that may be caused by acting on its answers or not doing so.

References and links to other websites should not be taken as an endorsement of all contents of those websites. 

Answers may not be used as evidence in any court of law without prior written consent of Darul Iftaa New York.