Insurance for Our Future


Assalamu’alaikum wa rahmatullahi wa barakatuh

Previously, I would like to apologize If my question below create any hard feelings to you.

Ustad (A Mention for religious teacher or scholar in Islam-ed), several years ago I joined an insurance for my children education. Alhamdulillah, all praise belong to Allah, several years after, I began to understand that it was a mistake. But the insurance policy can not be claimed before a certain time. It can be sold, but I must wait for a buyer to come. Finally, I decided to lend that insurance money together with it’s interest, which I meant to use it as a kind of saving, thus, when the policy reach it’s end of the period, the money that I take is my own money, and not the interest.

Now I have moved, and in this new city, the Insurance Office stated that I am now able to claim my policy, but with the amount written upon the policy itself. If I claimed it now, the sum of money I receive will be far from the amount that I have saved.

insurance for our future

Ever since I recognized the ruling of insurance, I intended to pay the premises as saving, and not as an insurance. What should I do? Should I claim it now or wait until the amount of policy equals the sum I deposited? I’ve been feeling uneasy lately. If I claimed it now, it means that for all this time, I’ve been paying interests for the credit which I meant to replace the interest (usury) that I will received in the future. But if I did not claim it now, I keep on feeling bad since the money I deposited will be used as a credit containing usury.

I beg you for an advice, to choose a straight path. Thank you.


All praise be to Allah, prayers and peace may always be granted upon The Prophet, Muhammad, his family, and his devoted companions.

Madam Sudarmi, may Allah always bestow graces upon you and your family.

The Insurance mostly known by society today, whether it is an educational insurance or the other, possess no difference one another. Those insurance are illegal in Shari’a, based on the following reasons:

First: Insurance is one form of exchanging contracts, based on speculation or a mere “luck”.

Hence, insurance contains a large element of gharar/uncertainty.

At the time of contract being signed, you as a client of an insurance, could not know exactly the amount you have to pay to the insurance and the amount you deserve to claim. It is possible for you to pay once or twice, and after that an accident occurred, thus you deserve to claim a sum of money which has been the commitment of the insurance company. Vice versa, it is possible for you to be void from any accident the whole your life, thus you pay the premises completely without receiving anything. In the same manner as the company could not set a definite amount of claimed to be paid to each of it’s client.

There is no doubt that this type of contract is forbidden in Islam.

أَنَّ النَّبِيَّ  صَلَّى اللهُ عَلَيْهِ وَ سَلَّمَ  نَهَى عَنْ بَيْعِ الْغَرَرِ

“The Prophet had prohibited the lucky-based transaction (gharar).” (Collected by Muslim)

Second: Insurance is a kind of gambling.

Hence, it is considered normal inside this business, if One party suffer a financial losses without any substitution, or with an imbalance substitution. Allah The Exalted declared,

يَأَيُّها الَّذينَ آمَنُوا إِنَّما  الخَمْرُ والمَيْسِرُ والأَنصَابُ والأزْلاَمُ رجسٌ مِنْ عَمَل الشَّيطَان فَاجْتَنِبُوه لَعَلَّكُم تُفْلِحُونَ

“O ye who believe! Intoxicants and gambling, (dedication of stones), and (divination) by arrows, are an abomination–of Satan’s handiwork; eschew such (abomination), that ye may be prosper.” (Al Maeda: 90)

It is certain that such practice is an oppression forbidden in Shari’a.

Third: Insurance contains an element of usury, because the foundation of insurance and the “dream” of every clients of it is to obtain a greater returns than the credit (premises) they have paid.

The scholars of jurisprudence had stated, “Due to those reasons, it was pronounced in a famous principle in jurisprudence, that:

كُلُّ قَرْضِ جَرٍّ نَفْعًا فَهُوَ رِبًا

“Every credit which come together with profit is usury.”

Fourth: There is a misleading towards society in general, and clients in particular.

For an insurance to be in society demand, It is a must for the company to create a wrong perception for them, and let them be haunted by their own future. The Insurance companies compete each other in dwelling an impression or perception that the future will be bad, full with financial problems, less income, miserable kids, and jobless. Isn’t it, brothers and sisters?

Dear madam! Try to remind the reason to be interested on joining that insurance company?
Your apprehension about your old age days, inability to pay your kids’ education, incapable of paying the medication when you get ill, and so forth. It seemed like Allah had withdrew your and your children part of fortunes. Isn’t it, Honorable Madam?

Be cognizant, Madam! Of these foul perceptions is a cause of your dark future. Because when it overtakes your mind, you will be faint hearted, weak spirited, depressed, and your logical mind will be molested.

Can you imagine the condition where this perception take control of all level of society? What do you think of their future? Coward, fearful of innovations and experiments, pessimistic, low spirited, and so on.

Compare them, who have been tied up by the propaganda of Insurance companies, to those who eye their future optimistically, full of trusts to Allah’s promises.

اللَّهُ الَّذِينَ آمَنُوا مِنكُمْ وَعَمِلُوا الصَّالِحَاتِ لَيَسْتَخْلِفَنَّهُم فِي الْأَرْضِ كَمَا اسْتَخْلَفَ الَّذِينَ مِن قَبْلِهِمْ وَلَيُمَكِّنَنَّ لَهُمْ دِينَهُمُ الَّذِي ارْتَضَى لَهُمْ وَلَيُبَدِّلَنَّهُم مِّن بَعْدِ خَوْفِهِمْ أَمْنًا يَعْبُدُونَنِي لَا يُشْرِكُونَ بِي شَيْئًا وَمَن كَفَرَ بَعْدَ ذَلِكَ فَأُوْلَئِكَ هُمُ الْفَاسِقُونَ

“Allah has promised, to those among you who believe and work righteous deeds, that He will of a surety, grant them in the land, inheritance (of power), as He granted it to those before them; that He will establish in authority their religion– the one which He has chosen for them; and that He will change (their state), after the fear in which they (lived), to one of security and peace: “They will worship Me (alone) and not associate aught with Me”. If any do reject faith after this, they are rebellious and wicked.” (An Noor:55)

The Messenger of Allah -Shallallaahu ‘alayhe wa Sallam said, “Allah declared (in a hadeeth qudsi),

أَنَا عِنْدَ ظَنِّ عَبْدِي بِي

“I am powerful to do anything My servant suppose of Me.” (Muttafaqun ‘alayh/agreed by Bukharee and Muslim).

Which means: Allah will always treat His servants in accordance to their faith and their perception of Allah. Allah will also bring their perception of Him to reality.

Thus, if you convince and optimists that Allah will brighten your future, then Indeed He will bestow upon you a bright and full of success future. But if you think that Allah will darken your future, and afflict it with calamities and misery, then He will bring all of your perceptions to life.

And what is your perception of your future now, Madam? I wish, it is as bright and cheerful as sunshine.

Madam, and all brothers, lift up your hopes, since Allah has given you a “fortune insurance”. Thus, take it with a big heart, full with firm faith upon Him.

يَا أَيُّهَا النَّاسُ اتَّقُوا الله وَأَجْمِلُوا فِي الطَّلَبِ فَإِنَّ نَفْساْ لَنْ تَمُوَت حَتىَّ تَسْتَوْفِيَ رِزْقَهَا وَإِنْ أَبْطَأَ عَنْهَا، فَاتَّقُوا الله وَأَجْمِلُوا فِي الطَّلَبِ، خُذُوا مَا حَلَّ وَدَعُوا مَا حَرَمَ

“O human, be pious to Allah, and take on the decent ways to obtain fortune, because verily, none of the servants will die. until he get all of his fortunes, although they come late. Thus, be pious to Allah, and take on the decent ways to find your fortunes. Take on the legal ways in finding fortunes, and leave the illegal ones.” (Collected by Ibn Maja, Abdurrazzaq, Ibn Hibban, and Al Hakim, and graded sahih by Al Albanee).

Dear brothers, and honorable madam, think about these “impression” and prediction. Then, compare it to the previous condition of your family, and to the whole society in general.

If you compare the previous time and today, you will find these days are much filled with riches than the past. Isn’t it?

But the ambition and lifestyle  of our society itself make them more miserable than their predecessors. The needs of people today are influenced by various propaganda from companies, while the needs of the predecessors were more realistic, in accordance with their income and condition.

إذَا كنْتَ ذَا قَلْبٍ قَنُوعٍ، فَأَنْتَ وَصَاحِبُ الدُّنْيَا سَوَاءٌ

“If you have contentment in your heart (qana’a), then you are similar to the owner of the world (conglomerate).”

اَلْقَنَاعَةُ كَنْزٌ لاَ يَفْنى

“Contentment is an eternal wealth.”

The Messenger of Allah Shallallaahu’alayhe wa Sallam depicted the condition of people bestowed with contentment by his saying,

مَنْ أَصْبَحَ مِنْكُمْ آمِناً فِي سِرْبِهِ مُعَافًى فِي جَسَدِهِ عِنْدَهُ قُوتُ يَومِهِ ؛ فَكَأَنَّمَا حِيْزَتْ لَهُ الدُّنْيَا بِحَذَافِيرِهَا

“Whoever of you who are feeling safe in his house, healthy, and possess livestock for that day, it seems like the whole world and it’s content are brought before him.” (Collected by Tirmidhi, Ibn Maja, At Thabrani, Ibn Hibban. and al Baihaqi).

Al Munawi -may Allah grant him graces- said, “The meaning of this hadeeth is that whoever collected all these conditions in him, which are health, safety wherever he goes, and have his needs being fulfilled, and his family is safe, then Allah has collect for him all kinds of enjoyment, which whoever able to conquer the world can not get more than that.”

As the conclusion: Insurance is a form of tyranny, ideologically and psychologically. Thus, it is the time for you to free yourself from this wicked tyranny. Enjoy your independent life: physically, spiritually, and psychologically! Find the vast graces of Allah on yourself and your offsprings. Keep fighting, to seize the freedom taken by the insurance companies! Good luck!

Back to your question, if it is possible for you to claim the policy now and withdraw all funds you’ve deposited, then this is the best choice to do. But if you can’t, then it is permitted for you to postpone it until you can withdraw the whole fund.

If there are remainder of the funds you paid, then the money could be given as charity, such as to the orphans, the poor, and so forth. But for you to know, that these remainder  should not be intended as charity, but as mean to free yourself from illegal wealth and usury.

One thing for you to keep in mind: Be haste in breaking the chain of usury and other misdeeds, because you never know when will The Angel of Death come to take your soul. You can imagine by yourself, how miserable will you be, if your time come and you still indulge in this sin and usury. Remember this narration from The Prophet Shallallaahu ‘alayhe wa Sallam:

لاَ يَدْخُلُ الْجَنَّةَ لَحْمٌ نَبَتَ مِنْ سُحْتٍ

“The flesh (of someone) that grown from illegal wealth will not enter the Heaven.” (Collected by Tirmidhi, Ibn Hibban. and graded sahih by Al Abanee)

May Allah The Exalted eases your way to get free from all sins and misdeeds.

And Allah knows best.

Author: Dr. Muhammad Arifin Badri, M.A.

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