Q: What is life insurance in one word?

Protection. Life insurance provides protection to your loved ones by ensuring financial support in the event of your death.

Question 1

What is providing certainty in insurance?

Accepted Answer

Providing certainty in insurance means offering financial protection and peace of mind against unexpected events. Insurance policies are designed to cover risks and ensure that the insured or their beneficiaries receive compensation or benefits when an insured event occurs.

Question 2

What is life insurance in one word?

Accepted Answer

Protection. Life insurance provides protection to your loved ones by ensuring financial support in the event of your death.

Question 3

Is life insurance haram?

Accepted Answer

The permissibility of life insurance in Islamic finance is debated. Some scholars consider it haram (forbidden) due to elements like uncertainty (gharar) and interest (riba). However, others argue that if the policy is structured in a Sharia-compliant way, such as through Takaful (Islamic insurance), it can be permissible. It is advisable to consult with a knowledgeable scholar for personal guidance.

Question 4

Is life insurance short term?

Accepted Answer

Life insurance can be short-term or long-term, depending on the type of policy. Term life insurance is typically short-term, providing coverage for a specific period, such as 10, 20, or 30 years. Whole life insurance, on the other hand, is a long-term policy that lasts for the insured's entire life.

Question 5

What is a 5-year term life insurance policy?

Accepted Answer

A 5-year term life insurance policy is a type of term life insurance that provides coverage for a period of 5 years. If the policyholder dies within this term, the beneficiaries receive the death benefit. After the 5-year term ends, the policy may expire, or the policyholder may have the option to renew or convert it to a longer-term policy.