Taking out life insurance solely to pay the estate duty upon one's demise
Question
A person's estate may be liable to pay more than 10 million in estate duty.
In order to avoid this, is it permissible to have an insurance policy that will, upon his death, pay out only whatever the estate duty amount is? No money from this will be received by the heirs.
Answer
Our ruling on insurance is that it is a combination of interest and gambling. Whether it is done with the right intentions or wrong intentions, it will not change the ruling.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Ebrahim Salejee (Isipingo Beach)
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