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Life insurance and the heirs

Fatwaa ID: 573

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 ?
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

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

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

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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