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Preview of Islamic Life Insurance Products

  • Mohd Ma’Sum Billah
Chapter

Abstract

Life insurance under Islamic discipline is quite different from that which is practised under the conventional system. An Islamic model of a life insurance policy, however, is a financial transaction based on the principle of the Al-Mudharabah financing technique, relying on the principle of mutual co-operation, undertaking a responsibility towards safeguarding widows, orphans and other dependants of the deceased (assured/policyholder) from unexpected future material risk. The nominee(s) in the life insurance policy who is appointed by the assured, is not an absolute beneficiary(s) over the policy but a mere trustee who receives the benefits and distributes them among the heirs of the deceased (assured) according to the principles of Mirath (inheritance) and Wasiyah (bequest).

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Mohd Ma’Sum Billah
    • 1
  1. 1.Professor of Finance, Insurance, Fintech and Investment Islamic Economics InstituteKing Abdulaziz UniversityJaddahKingdom of Saudi Arabia

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