Fatwa #157236 October 2007South Africa
Is the commission that one earns from selling life insurance policies, retirement annuities, etc. considered haraam?
Question
Assalaam mu alaikum
Is the commission that one earns from selling life insurance policies, retirement annuities, etc. considered haraam? Is it permissible for one to work for an insurance consultant as an adminstrator/secretary considering that the main source of income from this business is through commission from promoting and selling such products?
Jazak Allah
Answer
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatoh
Conventional Insurance Policies and Retirement Annuities contain elements of gambling and interest. These are Haraam in our Shariah. It is not permissible to sell, or accept commission on insurance policy sales nor work for a company promoting such products.
And Allah knows best
Wassalam
Mufti Ebrahim Desai
Darul Iftaa