Is insurance haram? There is a lot of debate surrounding the topic of insurance in Islam. Some people believe that it is completely haram (forbidden), while others believe that it is permissible under certain circumstances. So, what is the truth? Read till the end for answers!
Table of Contents
A Closer Look
What is Haram?
There are many behaviours that are considered haram, or forbidden, in Islam. These include things like stealing, gambling, lying, and cheating. Additionally, there are certain foods and beverages that are considered haram, such as pork and alcohol. Muslims who adhere to the teachings of Islam strive to avoid engaging in any behaviour that is considered haram.
Is Insurance Haram?
There is a lot of debate surrounding the issue of insurance in Islam. Some people believe that all insurance is haram, while others believe that only certain types of insurance are not permissible.
The bottom line is that all insurance involves some element of riba (interest). And since riba is not permitted in Islam, any form of insurance that includes it is also not permissible.
Also Read: Is Life Insurance Haram?
There are some Muslims who argue that insurance is a form of gambling. And since gambling is also not permitted in Islam, they believe that insurance should also be forbidden.
However, there are many scholars who argue that insurance is not the same as gambling. They say that insurance is a contract between two parties, and there is no element of chance involved.
So, the final verdict on insurance in Islam is that it is not permissible. If you are a Muslim and you are looking for a way to protect yourself and your family financially, there are other options available that are halal. You can talk to a financial advisor about these options.
Reference – The above information is verified via Islam Question and Answer.
Is Insurance Haram or Halal? – Bottom Line
There are many different interpretations of whether insurance is haram. However, most scholars agree that insurance is in-fact haram due to the fact that riba is involved in Insurance and riba is considered absolutely haram. Ultimately, the decision must be made based on one’s own understanding of Islam and what is best for them and their families. Thank you for reading!