What is the Islamic perspective on life insurance? Do we consider it as a guarantee, a conditional gift, or a contract? Is it permissible for a Muslim to insure their life and the lives of their family? Is it permissible for a Muslim to be the owner of a life insurance company? If a believer dies, are the funds received by the family considered inheritance?
Life insurance is an independent contract, and a Muslim may insure their life and the lives of their family. It is also permissible for a Muslim to own a life insurance company, provided that they do not engage in usury, like doing so for investment and [condition to receive] a share of a percentage of the profit between the owner and the insurer. As for what is disbursed to the family members of the deceased, it is not considered inheritance, but rather the property of the person named.