Fatwa: # 17226
Category: Inheritance
Country: South Africa
Date: 23rd October 2008

Title

My late father had left behind life insurance policies which had been distributed in his estate along with letters to all beneficiaries stating what the capital and interest portions

Question

I would like to give a smal background first and then follow it with the question

My late father had left behind life insurance policies which had been distributed in his estate along with letters to all beneficiaries stating what the capital and interest portions were as the beneficiaries felt they themselves wanted to decide how they would want to spend it.

Of my share i have made a decision to keep only the capital portion and give away the interest portion but i now require a loan and would not like to approach the banks so my question is that if the other two beneficiaries decided to keep their monies would it be permissable for me to take a loan from them and pay them back in three years time 

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

The surplus money besides the capital contribution towards the insurance policy is haram and should be disposed off to the poor and needy. It is not permissible for the beneficiaries to keep the surplus money if they are not poor and needy. If the beneficiaries offer you a loan, it will be regarded from their legitimate wealth.

And Allah Ta'ala Knows Best

Wassalam

Mufti Ebrahim Desai
Darul Iftaa

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]