A lot of people say it is fundamentally a gamble but people who have purchased these plans, what’s their reasoning behind it? Does it fall under the laws of islam?
Re: Life insurance: Halal or Haram?
I fail to see how its a gamble. Insured individual is not going to get any benefit out of that, and survivors dont want that benefit. Isn't it the same as insuring your car, health, house or anything else?
Re: Life insurance: Halal or Haram?
why worry about the insurance alone when most of us are involved in Rib’a [usury/interest] when we purchase our cars, homes and travel insurance.
**machhli chhaaneN aur ooNT bahaa jaaye!!! **
Re: Life insurance: Halal or Haram?
Interest (Fa’eda) and Usury (Rib’a) are two different things. Fixed profit is not prohibited in Islam, charging an excessive or inordinate premium is. The Quran has made Rib’a impermissable, not Fa’eda.
Re: Life insurance: Halal or Haram?
that's the difference...when you share the profit ONLY and do NOT share the loss [fixed interest = rib'a] is Haraam in Islam while trading [tijaarat] is allowed simply because in tijaarat you have no fixed rate of return on your investment AND you may also suffer a loss.
in interest, you will be definitely paid a certain fixed percentage of profit [interest] even if the business you invest in may suffer a loss.
Re: Life insurance: Halal or Haram?
Peace,
EH's question still unanswered. :) So life insurance is halal or haram?
Re: Life insurance: Halal or Haram?
I fail to see how its a gamble. Insured individual is not going to get any benefit out of that, and** survivors dont want that benefit**. Isn't it the same as insuring your car, health, house or anything else?
Thanks for the reply, tlk. Good Point but the family is going to get the benefit anyway. Now if that benefit is halal or not, that's the question. As for the last point, I only have car insurance because it's a legal requirement, other than that I tend to stay away from this stuff unless I understand if it's allowed in Islam.
Interest (Fa'eda) and Usury (Rib'a) are two different things.** Fixed profit is not prohibited in Islam**, charging an excessive or inordinate premium is. The Quran has made Rib'a impermissable, not Fa'eda.
interesting.
Re: Life insurance: Halal or Haram?
There is still a spectrum of definitions of "riba" from different scholars.
Re: Life insurance: Halal or Haram?
Yeah kya logic hui bhai sahab. If you are doing one thing wrong does not mean that you can’t be worried about another wrong thing
Re: Life insurance: Halal or Haram?
It amazes me how many muslims think "Insurance" is haraam. Unbelievable. One of humanity's greatest accomplishments in fighting and safe guarding against calamities like floods, hurricanes, car crashes, fatal diseases, etc. And they want to make this haraam too.
Urgh.
Re: Life insurance: Halal or Haram?
It amazes me how many muslims think "Insurance" is haraam. Unbelievable. One of humanity's greatest accomplishments in fighting and safe guarding against calamities like floods, hurricanes, car crashes, fatal diseases, etc. And they want to make this haraam too.
Urgh.
Do you have something to back your point? or is just Bsing as always?
Re: Life insurance: Halal or Haram?
'allamah Iqbaal kaa ek she’r PCG ke liye:
[is shaKHs kii ham par to Haqeeqat hii nahiiN khultii
hogaa yeh kisii aur hii Islam kaa baanii]
Restored attachments:
Re: Life insurance: Halal or Haram?
A lot of people say it is fundamentally a gamble but people who have purchased these plans, what's their reasoning behind it? Does it fall under the laws of islam?
As far as I know, Islam is fine with insurance (including life insurance). Actually, some types of insurance are recommended/encouraged in Islam ... that can be proven from Quran.
Re: Life insurance: Halal or Haram?
Sorry that I gave an opinion, without any reference or argument, so here it is:
Insurance and concept of insurance: Insurance is a way or arrangement made to protect ‘Insurer’ from the losses of possible calamities, mishaps and eventualities (Haadsaats) and save ‘Insurer’ from hardships of such calamities, mishaps and eventualities. Here, ‘insurer’ could be individuals, countries or companies.
Life Insurance: By paying a set amount to insurance provider, an insurer protects his family from financial hardship that could arise after insurer’s death.
House and car insurance: By paying a set amount to insurance provider, insurer protects oneself from financial hardships and responsibilities that could arise due to calamities, eventualities and mishaps to house or car accident (especially to third party).
And so on …
Similarly, caring companies and countries provide collective insurance for their employees or citizens. Insurance by individuals and collective insurance by state or group, is an historical phenomenon.
Difference from past and present is that, in past we had no insurance providers, but we have today (at least, for certain type of insurance).
Without going into details, I would like to show link between Islam and insurance.
1: From the story of Yusuf (AS) in Quran, we know that Yusuf (AS) saved grains during good harvest (in Egypt), so that it can be used during days when harvest would be bad. Such accumulation of grains during good times was insurance for bad times.
2: Quran ayah 8:60:
Yusuf Ali: Against them make ready your strength to the utmost of your power, including steeds of war, to strike terror into (the hearts of) the enemies, of Allah and your enemies, and others besides, whom ye may not know, but whom Allah doth know. Whatever ye shall spend in the cause of Allah, shall be repaid unto you, and ye shall not be treated unjustly
In above ayah, Allah tells Muslims to prepare themselves and be ready for the enemies. Such preparation in time of peace is insurance for the time when war is imposed by enemies.
Above ayah clearly indicates that tawakkullah does not mean, one should not be prepared for mishaps, eventualities or calamities, and that state (or individual) can do (be prepared) is by investing on insurance (cost of military preparation or any sort of preparations).
3: During Gazwa-e-Uhad: Prophet (SAW) ordered a group of Muslim archers to take positions on a particular hill overlooking the battle field and told them never to leave their positions. Those archers were insurance against any out-of expected events, mishaps or eventualities that might occur. Unfortunately, when archers left their position, that insurance cover ended (it is just like one stops paying insurance premium) and further unfortunate event caused huge losses to Muslims that would not have happened if archers taking position on hill as insurance against eventualities would not have moved (ended that position of insurance).
4: Standing army that all Muslim countries have today, is also insurance against any eventualities and enemy attacks. Such standing army Muslims states are having since time of Umar (RA).
5: A responsible and caring government, be they Muslim or non-Muslim, spend huge amount of money to ensure that citizen are covered for any mishaps, calamities, eventualities or disasters. If a country does not, then that country is considered as irresponsible or third world banana country.
In Muslim countries, bait-ul-Maal or Zakat fund is always available as insurance for citizen going through calamities, mishaps or eventualities of life.
All above shows that Insurance is allowed in Islam, rather from ‘ayah 8:60’, one can say that some sort of insurance is recommended. That is, a Muslims should be prepared for calamities, mishaps and eventualities of life … and such preparation is obviously having insurance against such calamities, mishaps and eventualities (be that insurance is done by individuals or state).
Re: Life insurance: Halal or Haram?
Do you know what Insurance is? Do you know what Interest is?
These are two different financial concepts. Difference is like the difference between Earth and Mars.
Re: Life insurance: Halal or Haram?
We have yet to come up with an ‘agreed upon’ definition of Rib’a. Until then, you cannot be sure even about interest on mortgages or leases.
Re: Life insurance: Halal or Haram?
Not like we're perfect Muslims and follow exactly what Islam says, halal or haram, it is still a good thing. Not like you're getting any interest or something. Like PCG said, there is a difference between insurance and interest.