Free life insurance as a benefit of employment

 

 

 

Question:

Assalamu'alaikum

My husband's work offers life insurance as part of their benefits package, is this halal? he is not required to sign up for it to receive health insurance, that's separate, but he could if wants to.
jazakallah
wassalam

بسم الله الرحمن الرحيم

الجواب حامدا ومصليا ومسلما

Answer:

As Salāmu Alaykum Wa Rahmatullāhi Wa Barakātuhu,
 
The general ruling regarding life insurance policies is that they are not permissible, as they constitute components of interest and gambling which are both strictly prohibited in Shari’ah. 
 
In the aforementioned scenario, though the employee is not making any contributions towards the premium himself, we would advise to abstain from applying for such service, as it is indirectly taking part in sin. 

والله اعلم

Allah subhanahu wa ta'ala knows best.

Omar Baig

Approved by Mufti Husain Ahmad Madani