Rethinking life insurance for the modern Muslim
Many people believe that life insurance is haram because they assume it involves riba (interest), gharar (uncertainty), and maysir (gambling) - all of which are prohibited in Islam.
But before we rush to dismiss the concept entirely, let’s pause and ask a deeper question: Is there a way for Muslims to ensure their loved ones are cared for, even after they’ve passed away?
Dispelling misconceptions
For many Muslims, life insurance feels like a Western product tainted by practices that clash with Islamic ethics. And to be fair, traditional life insurance - particularly in its commercial form - does raise some valid concerns. The involvement of interest-bearing investments and uncertainty about payouts makes most life insurance haram for Muslims.
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Sharene Lee & Ameerah Langer