Endowment Policies


My father invested in endowment policies. On two of the policies, both my mother and father where policy holders and both of their lives were insured on them. And on one of them, they both were policy holders but only my fathers’ life was insured on it. We received a lump sum of £94000 when father passed away in 2008. My father put a total of about £35000 into the policies. The three main areas invested in by the investment/insurance companies were shares/stock; commercial properties and fixed interest securities/stock. The percentage of the amount invested in these areas varies from company and varies over time depending on where the company feel they can get the best returns. I have no information as to from which companies the shares were invested in.

My question is how much money received is haram and how much of it must we give away?


A`udhu billahi min ash-shaytan ir-rajeem
Bismillahi ‘r-Rahmani ‘r-Raheem

Recent surveys of the approximately 9,000 companies listed on the London Stock Exchange, the New York Stock Exchange (NYSE), and the Nasdaq Stock Market show that between 75% and 80% of them produce products or services acceptable to Islam. After analyzing the companies’ financial statements, though, the universe of permissible investments is further reduced to between 3,000 and 4,000 companies listed on US exchanges, in Europe and England, and in Asia, Africa, and the Pacific region.

Based on this survey you may figure out for yourself how much money received might be haram that you should give away.

Imam Senad Agic
American Islamic Center – Chicago
Majlis #1 Head Imam (IABNA)

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