What is the ruling on a company insuring the lives of its employees, paying the insurance premium to the insurance company, and then the company controlling the amount the employee receives from the insurance policy as an end-of-service bonus?
It is not permissible to contract with a company to collect end-of-service benefits through life insurance, even if the employees do not pay the insurance premiums. This is because it involves aiding in and condoning a forbidden act. However, if the employees contract with the company for end-of-service benefits without knowing that the company insures them, then there is no harm in them taking this benefit.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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