Life Insurance and Disability Policy

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Q: I am remunerated by my employer on a cost to company basis. As part of the salary package every employee contributes to a life insurance and disability policy. Am I allowed to belong to such a fund, use such benefits in the case of my disability and can my next of kin use these funds in the event of my death?

A:
If contribution to this fund is made by the employer by deducting the amount from your gross salary, then this will be permissible and you as well as your family members may utilize the benefits of this fund.
But if you are contributing to this fund from your salary or your own pocket, or you have voluntarily chosen to take out such insurance, then this is not allowed and you can only draw from such a fund the amount of money you had paid in.
Mufti Siraj Desai