Life insurance is a popular financial product, but it is haram according to Islamic law. This is because it involves gambling or a form of gambling called riba. In the Qur’an, Allah explicitly condemns riba, so it is not something that can be justified in any way.
What Does Islam Say About Gambling and Risk?
Islam views gambling and other forms of risk as something that is to be avoided. Gambling is viewed as something that is filled with uncertainty and can lead to significant losses, which is why it is something that is not viewed favourably. Islam also views taking on too much risk as something that can be detrimental to one’s wellbeing.
How Life Insurance is the Same as Gambling
Life insurance can be seen as nothing more than a form of gambling in that it relies on taking a chance that something might happen in order for a person to be financially protected. In life insurance, the policy holder takes a gamble that he or she will die in order to benefit from the policy.
Why Life Insurance is Haram
- Gambling: Life insurance involves a form of gambling and is thus considered haram.
- Uncertainty: Life insurance involves taking a chance on something that may or may not happen and this is seen as something that is not in accordance with Islamic values.
- Riba: Life insurance involves riba, which is another form of gambling and is strongly forbidden in Islam.
Life insurance is haram because it involves gambling or a form of gambling called riba. Islam views gambling and other forms of risk as something that is to be avoided and taking on too much risk as something that can be detrimental to one’s wellbeing. As such, life insurance is seen as something that is not in accordance with Islamic values and is thus something that is avoided.