Mortgage insurance when buying a house

22-12-2013 | IslamWeb

Question:

I bought a house via a mortgage in UK and was advised to apply for mortgage cover plan (life cover) in which I have to pay a monthly fixed payment for the duration of the mortgage. This will guarantee paying the rest of the mortgage if when I die so that my dependent children and wife won't lose the house. I am not sure if this is acceptable in Islam or haram? Please advise.. Jazakom Allah Khaira
Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad sallallaahu `alayhi wa sallam ( may Allaah exalt his mention ) is His slave and Messenger.

Life insurance and debt insurance are not permissible if the insurance is commercial. The Islamic Fiqh Committees have issued many Fataawa about it being forbidden, as this kind of insurance involves Riba (usurious interest), uncertainty and gambling. Therefore, it is an invalid form of trade and Islamically forbidden.

Hence, it is not permissible for a Muslim to buy such insurance.

For more benefit, please refer to Fataawa 83397 and 81425.

Allaah Knows best.

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