The practice of taking out funeral insurance is debated in Islam due to the prohibition of commercial insurance. In general, commercial insurance policies, being sold by profit-driven companies, are considered impermissible. However, insurance schemes provided by mutual assistance organizations may be permissible under certain conditions.
If there are associations in your area funded by membership fees to cover funeral expenses, it is permissible to join these associations. These associations are typically funded by members’ contributions, and as long as the funds are not invested in unlawful ventures or used for interest, such assistance insurance can be considered permissible.
In conclusion, it is permissible to join funeral funds offered by legitimate insurance companies or associations established by other Muslim groups for funeral expenses. If these options are unavailable, the possibility of establishing a similar association within the local community can be explored.
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