Halal Life Insurance in Saudi Arabia

Table of Contents

Disclaimer: this article will explain some important things about halal life insurance for people in Saudi Arabia, especially Muslims in Saudi Arabia. This article does not specifically discuss halal life insurance companies in Saudi Arabia.

Hi all readers! Are you looking for an explanation of halal life insurance in Saudi Arabia? If your answer is “Yes”, congratulations! Now you are reading the right article. Why? Because that is what I will explain in this article. As Muslims, we must understand that. That's why I wrote this article. So, you should read it to the end!

One important thing I want to explain is that the discussion about halal life insurance in Saudi Arabia in this article does not specifically discuss halal life insurance companies in Saudi Arabia. In this article I will only explain some basic things about halal life insurance in Saudi Arabia according to sharia principles and Islamic rules.

Specifically, there are three important things about halal life insurance in Saudi Arabia which I will explain in this article. The three important things I mean are as follows:

What Is Halal Life Insurance in Saudi Arabia?

The important thing about halal life insurance in Saudi Arabia that I will explain now is “what is halal life insurance in Saudi Arabia?”. I want you to understand that first because it is one of the basic things that must be well understood.

There are two important things we must understand first:

Halal life insurance

If we read some Islamic literacy about halal life insurance, we will find an explanation that halal life insurance is an effort to protect and help each other among a number of people. This is done through investments that provide returns to meet certain risks through sharia-compliant agreements.

In halal life insurance there is a system. All halal life insurance participants will contribute if there are other participants who experience losses. In other words, the role of halal life insurance companies is only to take care of operational and investment matters from a number of insurance funds.

The purpose of halal life insurance is the welfare of Muslims, not getting very many benefits like the purpose of conventional insurance.

We can find an explanation that the welfare of Muslims is the main goal of halal life insurance if we understand the meaning of halal life insurance and the criteria of halal life insurance. I will explain the halal life insurance criteria at the end of this article.

In Saudi Arabia

I guess we all know Saudi Arabia. Saudi Arabia is a country. I won't say much about it.

In simple terms, I want to say that what is meant by halal life insurance in Saudi Arabia is a life insurance or life insurance company that uses sharia principles or Islamic rules as the principle of managing insurance companies and insurance funds.

That's a brief explanation of "what is halal life insurance in Saudi Arabia?". As Muslims, we must understand that.

Is There Halal Life Insurance in Saudi Arabia?

The important thing about halal life insurance in Saudi Arabia that I will explain now is “is there halal life insurance in Saudi Arabia?”. I want you to understand that because it is one of the important questions for Muslims about life insurance in Saudi Arabia that must be well understood.

In the previous few paragraphs, I have explained that halal life insurance is life insurance that uses sharia principles as insurance principles. Halal life insurance makes sharia principles the principles of managing insurance companies and managing insurance funds.

So, if you want to know whether a life insurance company is a halal life insurance company or a conventional life insurance company, you have to understand how they manage the life insurance company. If they make sharia principles the principles of managing insurance companies and insurance funds, then the insurance company is a halal life insurance company. If they do not use sharia principles as the principles for managing insurance companies and insurance funds, then the insurance company is not a halal life insurance company. That's the standard.

So, simply, if you ask me, "is there halal life insurance in Saudi Arabia?", the answer is that if in Saudi Arabia there are life insurance companies that make sharia principles or Islamic rules the principles of managing insurance companies and insurance funds, there is halal life insurance in Saudi Arabia. If in Saudi Arabia there is no life insurance company that uses sharia principles or Islamic rules as the principle of managing insurance companies and insurance funds, then, there is no halal life insurance in Saudi Arabia.

That's a brief explanation of "is there halal life insurance in Saudi Arabia?". As Muslims, we must understand that.

Seven Criteria of Halal Life Insurance in Saudi Arabia

The important thing about halal life insurance in Saudi Arabia that I will explain now is seven criteria of halal life insurance in Saudi Arabia. I want you to understand all of that because these are some of the important things about halal life insurance in Saudi Arabia that must be well understood.

In general, there are seven criteria of halal life insurance in Saudi Arabia:

Tawhid

Tawhid is the first halal life insurance principle in Saudi Arabia. The point is that halal life insurance is not only aimed at obtaining financial benefits, but also other benefits according to Islamic teachings. Therefore, the main purpose of halal life insurance is the good for Muslims.

Fair

Fair is the second principle of halal life insurance in Saudi Arabia. The point is that the management of halal life insurance funds in Islam is carried out fairly, not benefiting one party and harming the other party.

Justice is one of the principles of sharia. Muslims must be fair in all things. In the context of insurance, they are also required to be fair.

We can find an explanation that Muslims are required to be fair in all things, and in the context of insurance as a part of their lives, in the hadith below:

عَنْ عَائِشَةَ رَضِيَ اللَّهُ عَنْهَا أَنَّ قُرَيْشًا أَهَمَّهُمْ شَأْنُ الْمَرْأَةِ الْمَخْزُومِيَّةِ الَّتِي سَرَقَتْ فَقَالُوا وَمَنْ يُكَلِّمُ فِيهَا رَسُولَ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ فَقَالُوا وَمَنْ يَجْتَرِئُ عَلَيْهِ إِلَّا أُسَامَةُ بْنُ زَيْدٍ حِبُّ رَسُولِ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ فَكَلَّمَهُ أُسَامَةُ فَقَالَ رَسُولُ اللَّهِ صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ أَتَشْفَعُ فِي حَدٍّ مِنْ حُدُودِ اللَّهِ ثُمَّ قَامَ فَاخْتَطَبَ ثُمَّ قَالَ إِنَّمَا أَهْلَكَ الَّذِينَ قَبْلَكُمْ أَنَّهُمْ كَانُوا إِذَا سَرَقَ فِيهِمْ الشَّرِيفُ تَرَكُوهُ وَإِذَا سَرَقَ فِيهِمْ الضَّعِيفُ أَقَامُوا عَلَيْهِ الْحَدَّ وَايْمُ اللَّهِ لَوْ أَنَّ فَاطِمَةَ بِنْتَ مُحَمَّدٍ سَرَقَتْ لَقَطَعْتُ يَدَهَا

From Aisha, that Quraish were anxious about the Makhzumi woman who had committed theft, they said: Who will speak to the Messenger of Allah sallallahu alaihi wa sallam about her? Then they said: Who will be bold enough for it but Usamah bin Zaid, the prophet’s (sallallahu alaihi wa sallam) friend! So Usamah spoke to him, and the Messenger of Allah sallallahu alaihi wa sallam said: Are you interceding regarding one of the punishments prescribed by Allah? He then got up and gave an address, saying: What destroyed your predecessors was just that when a person of rank among them committed a theft, they left him alone, and when a weak one of them committed a theft, they inflicted the prescribed punishment on him. I swear by Allah that if Fatimah daughter of Muhammad should steal, I would have her hand cut off.

Mutual help

Mutual help is the third principle of halal life insurance in Saudi Arabia. The point is that the purpose of halal life insurance in Islam is mutual help. In fact, Muslims are required to help each other in all aspects of life.

We can find an explanation that Muslims must help each other in all things, and in the context of insurance as a part of their lives, in the following Quranic verse:

يٰٓاَيُّهَا الَّذِيْنَ اٰمَنُوْا لَا تُحِلُّوْا شَعَاۤىِٕرَ اللّٰهِ وَلَا الشَّهْرَ الْحَرَامَ وَلَا الْهَدْيَ وَلَا الْقَلَاۤىِٕدَ وَلَآ اٰۤمِّيْنَ الْبَيْتَ الْحَرَامَ يَبْتَغُوْنَ فَضْلًا مِّنْ رَّبِّهِمْ وَرِضْوَانًا ۗوَاِذَا حَلَلْتُمْ فَاصْطَادُوْا ۗوَلَا يَجْرِمَنَّكُمْ شَنَاٰنُ قَوْمٍ اَنْ صَدُّوْكُمْ عَنِ الْمَسْجِدِ الْحَرَامِ اَنْ تَعْتَدُوْاۘ وَتَعَاوَنُوْا عَلَى الْبِرِّ وَالتَّقْوٰىۖ وَلَا تَعَاوَنُوْا عَلَى الْاِثْمِ وَالْعُدْوَانِ ۖوَاتَّقُوا اللّٰهَ ۗاِنَّ اللّٰهَ شَدِيْدُ الْعِقَابِ

O you who have believed, do not violate the rites of Allah or [the sanctity of] the sacred month or [neglect the marking of] the sacrificial animals and garlanding [them] or [violate the safety of] those coming to the Sacred House seeking bounty from their Lord and [His] approval. But when you come out of ihram, then [you may] hunt. And do not let the hatred of a people for having obstructed you from al-Masjid al-Haram lead you to transgress. And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty. (Al-Maidah [5]; 2).

Cooperation

Cooperation is the fourth principle of halal life insurance in Saudi Arabia. The point is that each party must carry out their respective obligations according to the agreement. So, there is no party that does not fulfill its obligations.

We can find an explanation that Muslims are required to cooperate in all things, and in the context of insurance as a part of their life, in the above verse of the Quran and the hadith below:

عَنْ أَبِي مُوسَى رَضِيَ اللهُ عَنْهُ عَنِ النَّبِيِّ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ قَالَ : الْمُؤْمِنُ لِلْمُؤْمِنِ كَالْبُنْيَانِ يَشُدُّ بَعْضُهُ بَعْضًا ‏‏.‏ وَشَبَّكَ بَيْنَ أَصَابِعِهِ

From Abu Musa radliyallahu anhu, from Prophet (Muhammad), he said, "A believer to another believer is like a building whose different parts enforce each other." The Prophet then clasped his hands with the fingers interlaced (while saying that).

Trust

Trust is the fifth principle of halal life insurance in Saudi Arabia. The point is that each party trusts the other party to carry out their respective obligations. For example, insurance owners trust insurance companies to manage halal life insurance funds according to Islamic principles.

We can find an explanation that Muslims are required to be trusted or keep their promises, in the context of insurance as a part of their lives in this discussion, in the hadith below:

عَنْ أَبِي هُرَيْرَةَ رَضِيَ اللهُ عَنْه ، عَنِ النَّبِيِّ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ : قَالَ :‏ آيَةُ الْمُنَافِقِ ثَلاَثٌ إِذَا حَدَّثَ كَذَبَ ، وَإِذَا وَعَدَ أَخْلَفَ ، وَإِذَا اؤْتُمِنَ خَانَ‏

From Abu Hurairah radliyallahu anhu, from The Prophet (Muhammad), he said, "The signs of a hypocrite are three: (one) if he speaks, he lies, (two) if he promises, he breaks his promise, (three), if he is trusted, he betrays."

Volunteering

Volunteering is the sixth principle of halal life insurance in Saudi Arabia. The point is that neither party compels the other party. So, the owner of the halal life insurance must not force the halal life insurance company, and the insurance company must not force the owner of the insurance. Everything must be on a voluntary basis.

We can find an explanation that Muslims should not impose their wishes on others, and in the context of insurance as a part of their lives in this discussion, so that all can volunteer when they do whatever they want in the hadith below:

عَنْ مُعَاوِيَةَ بْنِ أَبِيْ سُفْيَانَ رَضِيَ اللهُ عَنْهُمَا قَالَ : قَالَ رَسُولُ اللَّهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ ‏:‏ لاَ تُلْحِفُوا فِي الْمَسْأَلَةِ فَوَاللَّهِ لاَ يَسْأَلُنِي أَحَدٌ مِنْكُمْ شَيْئًا فَتُخْرِجَ لَهُ مَسْأَلَتُهُ مِنِّي شَيْئًا وَأَنَا لَهُ كَارِهٌ فَيُبَارَكَ لَهُ فِيمَا أَعْطَيْتُهُ ‏

From Muawiyah bin Abi Sufyan radliyallahu anhuma, he said, "The Messenger of Allah sallallahu alaihi wa sallam said, "Do not be importunate in asking (for something), for by Allah, if one of you asked me for something and I gave it to him while I am reluctant, there will be no blessing in what I gave him."

Managing halal life insurance funds according to sharia principles and Islamic rules

Managing halal life insurance funds according to sharia principles and Islamic rules is the seventh principle of halal life insurance in Saudi Arabia. All funds must be managed in the right way according to Islamic teachings.

We can find an explanation that Muslims must do everything according to Islamic rules, and in the context of insurance as a part of their lives, in the following Quranic verse:

يٰٓاَيُّهَا الَّذِيْنَ اٰمَنُوْٓا اَطِيْعُوا اللّٰهَ وَاَطِيْعُوا الرَّسُوْلَ وَاُولِى الْاَمْرِ مِنْكُمْۚ فَاِنْ تَنَازَعْتُمْ فِيْ شَيْءٍ فَرُدُّوْهُ اِلَى اللّٰهِ وَالرَّسُوْلِ اِنْ كُنْتُمْ تُؤْمِنُوْنَ بِاللّٰهِ وَالْيَوْمِ الْاٰخِرِۗ ذٰلِكَ خَيْرٌ وَّاَحْسَنُ تَأْوِيْلًا

O you who have believed, obey Allah and obey the Messenger and those in authority among you. And if you disagree over anything, refer it to Allah and the Messenger, if you should believe in Allah and the Last Day. That is the best [way] and best in result. (An-Nisa’ [4]; 59).

That is a brief explanation of halal life insurance criteria in Saudi Arabia. As Muslims, we must understand that.

That's a brief explanation of halal life insurance in Saudi Arabia and some important things about it. Do you understand? If you want to ask, please ask!

I think that's enough for this article. Hope it is useful. Amen.

See you again in this article next!