Prudential Tries to Win Over American Muslims with New Sharia-Compliant Life Insurance

SHARIA INSURANCE-Just over one percent of all life insurance policies in the United States are Sharia-compliant, according to market research firm Mintel. 

But Prudential, one of the biggest names in life insurance, wants to change that. The company has launched a brand new insurance business that’s compliant with Islamic law. 

This move could help Prudential win over an underserved segment of the market, which includes Muslims living in the U.S., as well as others around the world who want Sharia-compliant life insurance plans but can’t find any options that fit their needs on the open market.

What is sharia compliant?

Sharia law, in its most general sense, is a moral code that covers both public and private conduct. It is derived primarily from the Qur'an and the Hadith. 

The details of sharia are traditionally interpreted by Islamic scholars, known as fuqaha (singular: faqih), who have various degrees of training in Islamic jurisprudence. 

The Prudential Group has collaborated with some of the leading experts on this topic, including Dr. Mohammad Abu-Nimer, Director of The Center for Contemporary Islam at American University; Dr. Abu-Nimer says he's been working closely with the Prudential Group to design a life insurance plan that adheres to principles of sharia, or Islamic law. 

This new product will be an alternative for those people who would like an insurance product but cannot find one in the United States. 

The new product will offer four types of policies, including single pay life insurance which pays out $1 million upon death. 

Prudential is collaborating with experts such as Dr. Mohammad Abu-Nimer, Director of The Center for Contemporary Islam at American University; this collaboration has allowed the company to design a life insurance policy that fits Islamic principles such as takaful. 

In addition to sharia compliant coverage options, Prudential also offers regular universal life products which comply with other religious practices such as Halal and Christian cross products.

What makes it different from regular insurance?

Sharia law prohibits the use of any interest (riba) in transactions and it forbids investing in industries that have a negative impact on society or the environment. 

For instance, Prudential's new product will not invest in tobacco, alcohol, weapons, or gambling. It also includes more traditional protections like family coverage. 

The hope is that this unique product will give Muslim customers a way to participate in one of America's most basic institutions while maintaining their religious principles. 

We're excited to introduce a life insurance solution for Muslim families who are looking for an alternative, said Amjad Mahmood Khan, senior vice president of global business development at Prudential. 

There has been growing demand among Muslim consumers for products that align with their faith. When companies enter these markets, they have typically done so by selling sharia-compliant versions of existing products such as banking services or mortgages. 

The problem is that these adaptations often don't fully meet the needs of sharia law, which requires strict adherence to specific rules about what investments can be made with funds from a policy and how premiums should be allocated between insurers and beneficiaries. That's why it makes sense for big players like Prudential to launch dedicated sharia-compliant businesses. 

And the results could be huge: even though Muslims make up only 1% of Americans, they still spend over $200 billion a year on goods and services - much of which comes from large corporations that offer nothing explicitly compatible with their faith.

So what would make Muslim women choose this over their regular health plans?

Muslim women who are looking for a life insurance plan that is in alignment with their religious beliefs may find themselves frustrated. 

The few companies that offer life insurance in accordance with Islamic law have historically had limited options, high premiums and long waiting periods. 

Prudential's new business will allow Muslim women to buy a sharia-compliant life insurance policy on their own or as part of a group health plan. 

The company offers a variety of premium plans from $2,500 up to $200,000 and can be purchased within two weeks after the application. 

As an additional perk, if the customer dies before 10 years, her spouse will receive half of the money they paid in premiums back. 

Feminism takes many forms and shapes – some individuals want to wear hijab while others do not feel comfortable doing so. However, both sides agree that it should be a woman’s choice what she wears based off of her personal preferences. 

It is unfair to impose one type of feminism over another. What matters most is that you are following your conscience and living according to your values; whether you choose to wear the hijab or not doesn't matter as much. What matters is that you are following your heart and staying true to yourself. 

Feminism takes many forms and shapes - some people want to wear hijab while others do not feel comfortable doing so. Ultimately though, it is up to the individual and no one else should impose their ideals onto them.

Is it worth it?

This is a huge step for Prudential and the Muslim community in America. If successful, this could open up new opportunities for mutual understanding and even better relationships between the two groups. 

However, it seems like there are some kinks that need to be worked out before it can be fully implemented. It's unclear if the insurance company will offer coverage for items such as prenuptial agreements, which would be prohibited under Sharia law. 

In addition, these policies may not be attractive to younger Muslims who already have enough faith-based obstacles in their life. 

The biggest obstacle of all is that this product only offers life insurance, not general financial services or retirement plans. For now, those options must still go through conventional channels. 

One big hope is that because this venture isn't trying to convert people away from Islam but instead adapt Islamic principles into an existing business model, other insurers might follow suit. I'll keep my fingers crossed!

It's good to see companies try new things, especially when they're so intertwined with our daily lives. I just hope they continue to listen to feedback from both sides and make changes accordingly. Just thinking about what this means for our society brings tears to my eyes. 

I'm cautiously optimistic about where we'll end up if everyone keeps working together on finding solutions rather than fighting against each other. 

With any luck, every single person will be able to work and thrive no matter how they choose to live their life. That's what makes us great.