Is it permissible to participate in an insurance company that gives the participant a sum of money it determines after he reaches a certain age, with an annual premium specified for that, and in the event of contract termination, the participant recovers a percentage of his payments that increases with the duration of the contract? And is this type of transaction considered usury?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The Islamic Fiqh Academies have unanimously agreed on the prohibition of all forms of insurance, except for cooperative insurance, because it is a contract of donations. This involves an agreement to pay a specific contribution to compensate for damages that may befall one of them. Life insurance is prohibited due to its inclusion of gharar (excessive uncertainty).
Summarized from the full answer at Ftawy · imported
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