Benefitting from a Company Insurance policy


Nasihah (Advice): Pay your workers timeously

Sayyiduna Abdullah Ibn Umar radiyallahu anhuma reported that Rasulullah (sallallahu alayhi wa sallam) said: “Pay the worker his wages before his sweat has dried.” [Sunan Ibn Majah]



Question and Answer:


  1. Q. I am working for a company and the company I work for has taken out an insurance policy for me. They are paying for it and I am not paying for it at all. Will the payout be permissible for my beneficiaries? Will it be Halaal?


(Question published as received)


  1. In the enquired case, it will be permissible for your beneficiaries to benefit and utilize the proceeds of the Insurance Policy.


This is based on the fact that as an employee, you did not enact or contribute towards the Insurance Policy in any way. It was solely taken out and funded by your company.


Accordingly, the proceeds of the Insurance Policy to your beneficiaries will be regarded as a Gift to your beneficiaries, and thus Halaal and permissible.


And Allah Ta’ala Knows Best


(The answer hereby given is specifically based on the question asked and should be read together with the question asked. Islamic rulings on this Q&A newsletter are answered in accordance to the Hanafi Fiqh unless otherwise stated.) 


Fatwa Department
Jamiatul Ulama (KZN) 

Council of Muslim Theologians
223 Alpine Road, Overport

Durban, South Africa
Tel : +27 (0) 31 2077099

Fax : +27(0) 31 2074163
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