Investing money in Aviva life insurance

11-5-2008 | IslamWeb

Question:

Asalam alaikum I am having little bit confusion, so kindly clear my doubt as soon as possible. I am thinking of investing money in AVIVA LIFE InSURANCE --i have enquired about it so the person from whom i have enquired is also muslim he have told me like this: I have to invest Indian Rupees 3000/month for 20 years which will be equal to 650000 rupees for 20 years and they put this money in different companies and after 20 years this will become around 2000000 depends upon the status of that company in which they have put that money it can be more than 20 lacs or less than 20 lacks ---They will pay me 10 % of this 20 lacs every year after 20 years and once i will die they will give this 20 lacs to my parents. So i am confused can u please clear my doubt and let me know is this type of investment allowed in Islam or not. Hope to listen from u soon. Thanks

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

 

The company which you mentioned in the question is one of the well-known commercial insurance companies and it is not permissible to invest in it because commercial insurance is forbidden as it involves gambling, risk and Riba (interest and/or usury).

The procedure which you mentioned in the question is the same method of a commercial insurance in which the insurance company is bound to pay a given amount at the end of the insurance period or when the amount of insurance becomes due either by the death of the person, or when he has an accident and other terms and conditions of different insurance contracts. For more benefit, please refer to Fatwa 81441.

Also, for more benefit on the permissible cooperative insurance, please refer to Fatwa 81425.

Allaah Knows best.