Most-asked question

Is a pension or insurance payout part of the estate?

26 fatawa in the archive answer questions on this, from 7 South African Darul Iftas (AskImam, Mufti Online, Jamiat KZN, Azaadville, MJC, Ibn Masood and others). Below, each Darul Ifta’s answer is quoted word for word from the opening of one of its fatawa.

Based on the fatawa linked below. Please read the sources and double-check with a Darul Ifta for your situation.

Consult a mufti for your situation. Fatawa SA is a read-only archive and issues no rulings of its own.

What the Darul Iftas say

“In terms of Shariah, accepting the nomination and appointment of executorship is subject to the approval of a person being nominated as an executor of an estate.”

Jamiat KZN — Accepting the nomination of being an executor to a deceased’ estate · 4 Oct 2024

“Life insurance is totally prohibited under Islamic Law as it entails aspects that are regarded to be gambling and interest in Islam and both these have been prohibited in Quraan with severe warnings.”

Azaadville — Life Insurance To Avoid Paying Estate Duty · 23 Jan 2025

“If Dunlop charges you a fixed price inclusive of the R10 which they regard to be for their insurance, it will be permissible for you to buy the tyre since you are paying for the tyre, and not for the insurance. Hence, it is permissible for you to add your markup and sell it to the customer.”

Mufti Online — Franchise charging insurance to their customers · 2 Jul 2024

“There can be two scenarios applicable to your query: 1) Your husband voluntarily subscribed to the pension fund and your husband paid premiums from his own account.”

AskImam — Are pension payouts included as part of the estate? · 9 Oct 2021

Quotes are the opening words of each answer as published; the full answer, its conditions and references are on the fatwa page. Answers depend on the exact details of each question.

Read the fatawa

  1. Inheriting a Life Insurance Policy MUBZ · 20 Feb 2025
  2. Life Insurance To Avoid Paying Estate Duty Azaadville · 23 Jan 2025
  3. Accepting the nomination of being an executor to a deceased’ estate Jamiat KZN · 4 Oct 2024
  4. Franchise charging insurance to their customers Mufti Online · 2 Jul 2024
  5. Are pension payouts included as part of the estate? AskImam · 9 Oct 2021
  6. Death Benefits and Inheritance MJC · 18 May 2026
  7. Inheritance from life insurance Ibn Masood · 17 Dec 2023
  8. Inheritance Distribution Of A Provident/Pension Fund Azaadville · 27 Sep 2021
  9. Taking out a Life Insurance Policy to avoid Estate Duty Taxes Jamiat KZN · 22 Jun 2020
  10. Taking out life insurance solely to pay the estate duty upon one's demise Mufti Online · 19 Feb 2024
  11. Taking out a Life Insurance Policy to avoid Estate Duty Taxes AskImam · 26 Mar 2020
  12. Inheritance on a policy MJC · 30 Mar 2022
  13. Car Insurance Payout Included In Inheritance Azaadville · 3 Jul 2021
  14. Are pension payouts included as part of the estate? (2/2) Jamiat KZN · 11 Feb 2021
  15. Courier company providing insurance for lost or damaged parcels as part of their service Mufti Online · 18 Jul 2022

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