Question:
What do the scholars and experts of shari’ah say regarding joining an insurance scheme to cover burial expenses at the time of death? In some countries, burial costs can be very high, and sometimes the family cannot afford them. A solution is a special burial insurance plan, where a fixed amount is paid monthly, and the deceased’s burial is arranged without additional cost. What does Shariah say about participating in such a system?
Answer:
All praise is due to Allah, and peace and blessings be upon the Prophet Muhammad ﷺ, his family, and companions.
It is permissible in Islam to take part in a burial fund or insurance plan specifically meant to cover burial expenses. In fact, it is commendable (mustahabb), because it encourages mutual help and community support, which Islam strongly encourages. However, the system should be organised and regulated properly to protect people’s contributions and ensure public benefit.
Burial in Islam
Burying the dead is a communal obligation (farḍ kifayah) in Islam. It ensures the deceased’s dignity, honours the body, and fulfils a trust from Allah ﷻ.
Allah ﷻ says in the Qur’an: “From the Earth We created you; We shall return you there and finally We shall bring you back to life once more.” (Ta Ha: 20:55) “Didn’t We make the Earth a place for holding back , the living and the dead?” (Al-Mursalat: 77:25–26) “Then Allah sent a crow, it dug the ground to show him how to bury his brother’s corpse.” (Al-Ma’idah: 5:31)
Islamic scholars agree that preparing and burying the deceased, washing the body, shrouding, performing the funeral prayer, carrying the body, and the burial itself is a communal obligation. If some people perform it, the rest are exempt. If everyone neglects it, all who knew and could help are considered sinful.
Who Pays for Burial Expenses
- From the deceased’s own wealth if any.
- If no wealth, those financially responsible during life (e.g., family) cover it.
- If there are no responsible relatives, the cost comes from public funds (Bayt al-Mal).
- If none of these exist, then the Muslim community is collectively responsible as a communal obligation.
Helping with the burial of someone who has no wealth is highly virtuous. It is counted as continuous charity (Sadaqah Jariyah) and carries great reward.
The Prophet ﷺ said: “Whoever gives a Muslim a ghusl and covers them, Allah forgives them forty times. Whoever digs a grave and buries the deceased continues to earn reward like the house in which they placed them until the Day of Judgment. Whoever provides a shroud will be clothed in silk garments in Paradise.” (Bayhaqi)
Burial Insurance
Allah ﷻ says: “Believers, fulfil all your contracts and responsibilities.” (Al-Ma’idah: 1) Contracts are generally permissible unless Shariah explicitly forbids them.
One form of cooperation today is insurance. In cooperative burial insurance the insurer agrees to cover burial costs. The insured contributes voluntarily. The purpose is mutual help, not profit.
Such insurance is permissible in Islam because it does not involve uncertainty (gharar) or interest (riba). Contributions are voluntary and for assistance, not profit. Even if the payout is higher than the contributions, it is not interest, because it is for mutual help.
Participating in burial insurance is permissible and commendable. It fulfils a communal need, demonstrates cooperation, and strengthens social solidarity. However, it should be managed legally and transparently, to protect people’s contributions and serve the public good.
And Allah Almighty knows best.
This Fatwa is written by Dr. Hafiz Muhammad Munir Al-Azhari