What is the Islamic perspective on protection through insurance?

The concept of Insurance is aligned closely with that of protection - The protection of one’s assets, income, family, dependents, health, business, from possible detriment resulting from an unexpected adverse event or loss. In Islam, this protection can be broadly translated as the Arabic word, Takaful.

The origins of Takaful date back to the era of the Prophet Muhammad (PPUH), and transactions with Takaful based Protection were discovered during the Caliphate of Omar (RA) where Maritime Protection Takaful was taken out by merchants to protect their cargo during sea voyages.

As humans, we strive to accomplish the highest financial outcomes and rely heavily on our families, assets, incomes, and our health to achieve these, without generally giving due consideration to the protection of these critical aspects of our lives. Consultants and Advisers at Hejaz Financial Services can help to explore the various Protection types that we have available, and how these can be tailored to meet individual requirements.