LIFE TAKAFUL ISLAMIC LIFE INSURANCE HALAL LIFE INSURER SHARIA COMPLIANT LIFE INSURANCES
An Islamic life insurance is by definition a halal cover policy between a Muslim insurance policy holder and a Sharia compliant insurance company, where the Islamic insurer commits to pay money in exchange for a premium contribution, after an agreed period or in case of the death of the insured person.
The Islamic life insurance or life Takaful is a Sharia compliant investment that allows an insured Muslim to financially cover his family in case of death by investing money while strictly respecting the principles of Islamic and ethical finance.
The life Takaful insurance is not to be confused with death insurance which is calculated on the risks of dying without any investment on the back which is speculative, because halal life insurance is rather an investment of money in the long term and whose mechanisms are premium placements that are tightly framed by Islamic Sharia law.
Halal life insurance as an instrument of investment is selective in investments and respects the following principles: ethical investments only, no investments in sectors which do not respect Islam, ban on speculation.
Sharia compliant life insurer are never place money in speculative or illicit equity funds such as alcohol or securities that go against the moral rules of Islamic finance including sectors covering pork products and gambling.