Is life insurance and health insurance halal in Islam?

Conventional insurance: Most contemporary fiqh councils (Islamic Fiqh Academy of OIC, AAOIFI, European Council for Fatwa) have ruled conventional insurance impermissible because:

1. Gharar (uncertainty): Both parties don't know if and how much they will receive/pay. 2. Maisir (gambling): It resembles a wager — pay premium, hope to receive payout. 3. Riba (interest): Insurance companies invest premiums in interest-bearing instruments.

Exceptions/necessity: Where insurance is legally mandatory (car insurance in most countries, employer-provided health insurance), scholars permit the minimum required by law as a necessity.

Takaful (Islamic insurance): A cooperative model where participants pool funds to help each other in case of loss. Profits are shared, surplus returned to participants. Investments are in halal instruments only. Available in many Muslim-majority countries.

Health insurance specifically: In countries without alternatives and where medical costs are catastrophic without it, many contemporary scholars permit conventional health insurance under necessity (darurah).