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Term Life insurance

Fatwaa ID: 2205

Question:
Assalamualaikum dear respected Mufti Sab, out of curiosity I wanted to know is Term Life Insurance halal or forbidden?

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

A Term Life insurance is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Like other forms of insurance, there are many haraam elements and factors in it such as gambling, interest and uncertainty. It is haraam to take out a Term Life insurance policy just as it is haraam to take out a whole life policy.

Do not destroy your Aakhirah for a meager benefit of others. It is not worth it. Allaah Ta’aala will take care of your family after your demise. He does not need you. You are only a means. Trust Him.

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

08/25/1445 AH – 03/06/2024 CE | AMG3-4426

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


https://www.investopedia.com/terms/t/termlife.asp

https://www.investopedia.com/term-life-vs-whole-life-5075430

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