Is it Permissible to take Life Insurance where the Employee Doesn’t have to Contribute Anything?

CategoriesTrade, Business & All Things Money [552]Tagged , ,

Fatwa ID: 03880

Answered by: Maulana Nabil Khan



If an employer is offering life insurance where the employee doesn't contribute anything, would that be okay to opt-in?


بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful



Life insurance is not permissible in Islam. It contains speculation (gara) and falls under the prohibition of consuming haram wealth. ِAllah says. “Do not consume your wealth amongst each other through false means.” [1]

Taking this into consideration, it is not permissible to benefit from the contribution of the employer that is invested into life insurance. The wealth retained from haram means itself is haram.



Only Allah knows best

Written by Maulana Nabil Khan

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham



[1] Surah Nisa, Verse 188



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