In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:
I believe in the permissibility provided it does not have interest and what you insure is permissible (e.g., insuring a shipment of liquor is not permissible).
According to this view, term life insurance is permissible while life insurance which gives a definite amount after a number of years is not. If you live in America, there is a kind of life insurance for burial which is not based on interest.
Almighty Allah knows best.
Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.