Choosing Life Insurance Sharia More Profitable?

Financial transactions according to Islamic principles to bring a sense of security for some people, this gap which then spawned many Islamic products, including life insurance, not just safe, Islamic insurance also has other more value.

Participants will get sharia insurance surplus at the end of the year can be agreed will be distributed in cash or into the next premium.

Losses were shared equally among participants. Though in its development, the company provides interest-free loans to cover losses while premiums collected again until later.

In 1 - 2 years, the life insurance sector grew rapidly, Insurance companies that provide these products as well seriously growing. However it should be noted feature of Islamic insurance products. The main character is located on the legalization of the policy.

Islamic life insurance do not transfer risk to insurance companies. Risk borne by the participants, In this case the insurance company managing it and not take risks. While in conventional insurance, the participants transferred to the insurance company. According to Islamic principles, the system is not justified.

If the development is not a lot of claims, the risk is collect the insurance company will be benefited. Meanwhile, if the poor performance, companies raise capital to pay claims, it is explained that there are about opposite conventional insurance principles of sharia.