Company Life Assurance

Jun 27, 2022 | Business & Trade


The company my husband works for, has a life assurance policy that you are automatically enrolled to. This means that if he dies while working for them, his beneficiaries are entitled to 2 x annual salary. Will this money be halal?

Please see attached file for more information.

Jazaka Allah khair


If the life insurance is being provided by the company and does not require the employee to make any contributions and the insurance contract takes place between the employer and insurance company, then it would be permissible for the employee to avail of the benefits provided. This will either be considered a gift from the employer or part of the employees salary.

If however, a contribution is deducted from the employees wage to pay for the insurance then it would not be permissible to avail of any benefits provided by this insurance, even if the employee was automatically enrolled onto this policy.

What is the ruling regarding healthcare insurance offered by an employer?

Can I take medical insurance as part of my salary package?

Answered by:
Ifta Research Fellow

Checked & Approved by:
Mufti Abdul Rahman Mangera
Mufti Zubair Patel