Why Life Insurance Is Haram. Conventional life insurance and other conventional insurance is prohibited due to it being a contract of exchange with the prevalence of the following elements: In takaful profit is divided between different participants in specific ratios
Some companies might invest their money in businesses that involve gambling, alcoholism, or entertainment, which is not allowed by their islamic law. By making arrangements of this nature, you are actually promoting interest and lacking belief in allah. We explore why there are so many questions when applying for life insurance online and what you can expect.