Group Life Insurance


Is it permissible for me to benefit from my employer’s Group Life Insurance / Death in Service Benefit?

Does it make a difference if I make a small contribution or not?


May Allah bless you.
If the policy has been offered to you free of charge and without being in exchange of part of your wage then it is permissible, otherwise no.
If you are making a contribution towards it, it is not permissible.

And Allah knows best!

Assalamu Alaikum,

Often the policy is free of charge with no contributions required, however, some additional tax is deducted for it from one’s income because the government considers it a taxable benefit (i.e. we have to pay tax on certain types of gifts/benefits from employers). I think the way it works is the benefit premium gets added to your income so that it can be taxed. Is it still permissible?

JazakAllah khair