Can a person have a DEFERRED ANNUITY?
Assalam-O-Alaikum,
I would like to know if a deferred annuity is halal to have. Looking forward to your speedy reply.
Wa Alaikum Assalaam,
الجواب و بالله التوفيق
A Deferred Annuity is not halal to have. This ‘Annuity’ is bought from an insurance company where you are required to pay premiums over a period of time. Over an accumulation period of the deferred annuity, your money earns interest at rates set by the insurance company. Hence, it is not permissible.
And Allah Knows Best.
Mufti Waseem Khan.
29/11/16.