Resolution No.(158) (24/2010) by the Board of Iftaa`, Research and Islamic Studies:
"Ruling when the Deceased`s Heirs Take his Life Insurance Money"
Date: 17/1/1432 AH, corresponding to 23/12/2010 AD.
All perfect praise be to Allah, The Lord of The Worlds; and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
During its twelfth session held on the above date, the Board reviewed the following question:
Is it permissible for the heirs to take the life insurance money of their deceased father or not?
After prolonged deliberations, the Board decided what follows:
If the company for which the deceased used to work made that insurance for him and paid its installments, then it is permissible for his heirs to take whatever amount they can from the insurance company.
However, if the deceased himself made that insurance of his own accord and paid its installments, then it is permissible for his heirs to take the amount of these installments and to give the rest in charity to be Rewarded from Allah, because that money is ill-gotten. And Allah Knows Best.
Head of the Iftaa` Board, The Grand Mufti of the Hashemite Kingdom of Jordan, His Grace Sheikh Abdulkareem Al-Khasawneh
Vice Head of the Iftaa` Board, Dr. Ahmad Hilayel
Dr. Yahia Al-Botoosh/ Member
His Eminence, Sheikh Sa`ied Hijjawi/ Member
Dr. Mohammad Khair Al-Essa
Judge Sarrie Attieh
Dr. Abdulrahman Ibbdah/ Member
Dr. Mohammad Oklah/ Member
Dr. Abduln`nassir Abu Al Bass`al/ Member
Dr. Mohammad Al-Khalayleh/ Member
Dr. Mohammad Al-Gharaibeh/ Member
Executive Secretary of the Iftaa` Board, Sheikh Mohammad Al-Hunaiti
Note: If it was a cooperative Islamic insurance company that adheres to the rules of Islamic Sharia, then it is permissible to deal with it as indicated in Fatwa No.(2994).