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LIFE INSURANCE Insurance of one’s life or possessions is haraam and is not permitted, because it involves gharar (buying/selling something where it is not known whether what is being bought/sold will actually be achieved/delivered, or in what specific quantity, thus putting one’s money at undue risk to being lost) and riba (usury, interest). Allaah has forbidden all transactions that are based on riba, and all transactions which involve deceit, as a mercy to this ummah, and to protect them from that which may harm them. Allaah says (interpretation of
the meaning): “whereas Allaah has permitted trading
and forbidden Ribaa” And it was narrated in a SAHEEH
report that the Prophet
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forbade deceit. And Allaah is the source of strength. 
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