Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Assalam o Alaikum

I wanted to know if it is permissible to invest in policies for kids so that when they grow up the get enough money for their education. Please reply me soon. Jazaak Allah Khair.

I have one querry which needs to be claried before Investment

I would like to take a policy for my daughter for her future needs  after 10 years (i.e. Marriage) and i have choosen METLIFE smart plan for 10 years from now and what i wolud like to know form you is that this investment is lawful or not

Kindly let me know and awaiting for your reply

(There may be some grammatical and spelling errors in the above statement. The forum does not change anything from questions, comments and statements received from our readers for circulation in confidentiality.)

Answer:

Insurance investment

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is none worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’, although they were forbidden. And that they devoured men’s substance wrongfully. We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Allah Says in the Holy Quran Chapter 3 Surah Ale-Imraan verses 130-132:

130 O ye who believe! Devour not ‘riba’ doubled and multiplied; but fear Allah; that ye may (really) prosper.

131 Fear the Fire which is prepared for those who reject faith.

132 And obey Allah and the Messenger; that ye may obtain mercy.

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

Beloved brother in Islam, it is not the concept of insurance per say which is considered illegal or prohibited in Islam, but rather what is ‘haraam’ and categorically prohibited and forbidden in Shariah is the involvement of the ‘riba’ or interest aspect, which lies at the core of the conventional interest-based insurance and financial institutions.

Although we are not familiar with the specific insurance company ‘Metlife’, if the scheme or plan of this company is take your money in installments over a period of say ten years, and after the period of ten years you (or your daughter) receives an amount over and above the total installments you have paid the company, it is evident that the increase would constitute the abomination of ‘riba’ in the Sight of Allah Subhanah.

Your Question: what i wolud like to know form you is that this investment is lawful or not

If the insurance company ‘Metlife’ with which you intend to place your investment does not specify that they will invest your premium contributions based on Shariah compliant interest-free principles…..chances are they would invest your contributions in conventional interest-based investments….thus any increase you receive from them which is over and above your contribution would constitute the abomination of ‘riba’ in the Sight of Shariah Law and in the Sight of your Lord Creator….and the indulgence in the abomination of ‘riba’ is categorically forbidden and prohibited to all who sincerely believe in Allah and the Last Day.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan