Life insurance for Muslims

[Trotter]

I have had some very positive business dealings and can answer pretty clearly.
Muslims, like other Christians, have a variety of different levels of observance and practices. Much is similar, but lots of varieties.
A few are against life insurance because it means the beneficiary profiting off someone's death.
But the big kicker for many is the interest involved in whole life. Devout Muslims try to shun any form of usury or interest; either paying or receiving. Pretty rough to do in our society, but many do!
So if they are anti-interest they might not do WL, but might possibly do variable utilizing equity accounts that don't pay interest. Or term.

 

[Todd King]

I have had some very positive business dealings and can answer pretty clearly.
Muslims, like other Christians, have a variety of different levels of observance and practices. Much is similar, but lots of varieties.
A few are against life insurance because it means the beneficiary profiting off someone's death.
But the big kicker for many is the interest involved in whole life. Devout Muslims try to shun any form of usury or interest; either paying or receiving. Pretty rough to do in our society, but many do!
So if they are anti-interest they might not do WL, but might possibly do variable utilizing equity accounts that don't pay interest. Or term.

Since FE doesn't build cash value very well, would they buy that if they understood?

 

[Trotter]

As I was saying, there are many variations
Some would say that even one cent of interest makes it sinful. Others would be more practical.
I used to be in the taxicab business, where I got to know lots of Muslims.
I bought used squad cars from a dealer who bought and sold with cash only. You either had to pay cash or get your own financing. He seemed to do well even though it seems like it would be a lot tougher to do business.

 

[Todd King]

I see, but if they are buying FE, then I wouldn't really expect them to worry one iota about what kind of cash value it builds. Either they want it for final expenses, not to build cash.

 

[Trotter]

We all know that FE shouldnt be sold for the cash value. The cash value just basically helps protect the policy's permanency, and isnt much of an investment.
I guess we know that for Muslims (and maybe other religious people) that interest (or "usury") aspect is anathema, and should be downplayed to say the least.
As to the prospect in the first post of this thread, it wasnt clear as to exactly what his objections to life insurance were, so that makes it hard to address. It might be that he was just following the direction of spiritual leaders without personally understanding the issues. (Believers and nonbelievers of all types can do that, not just Muslims. Look at people who just blindly follow the advice of termite financial advisors.)
And, as others have suggested, some prospects just look for any excuse not to buy.
We all know that every prospect is a little different, and that definitely includes the Muslims

 

[DHK]

I've heard this objection hundreds of times...

It's the same belief system why some Christians drink and others don't...

It's not in any religious book... it's a man made rule.

Depends on the religious book.

This is what LDS believe:
Doctrine and Covenants 89

5 That inasmuch as any man drinketh wine or strong drink among you, behold it is not good, neither meet in the sight of your Father, only in assembling yourselves together to offer up your sacraments before him.

6 And, behold, this should be wine, yea, pure wine of the grape of the vine, of your own make.

7 And, again, strong drinks are not for the belly, but for the washing of your bodies.

Not to argue - just to show that it is in at least one religious text.

 

[DHK]

Here's an interesting link:
Life Insurance: is it haram or halal? - Islamic Finance Guru

 

[billyb]

Muslims, like other Christians

A Muslim is not a Christian

 

[DHK]

He was saying there are varying levels of 'following' within Islam as there are variations of Christianity.

Context matters.

 

[Trotter]

A Muslim is not a Christian

You are correct.
I should not have written "like other Christians"
It would have been absolutely correct to write "like other religious people" or even just "people."
I still stand behind the thought that there is a lot of diversity in terms of their practices and level of observance.
And like others, many will claim that they are THE SPOKESMAN for the entire group.
Again, a few have problems with any life insurance. For more it is the "usurious" component of cash value insurance. Some think these issues through for themselves and others just follow their religious teachers mandates.