Original Question: I would like to enquire regarding my Global Savings Account under Aviva. In April 2024, I had terminated my Global Savings Account of 13 years because it was operating at a loss. I had since received the full surrender value (which was lower than the total amount that I paid over the years in premium). I understand that both funds that this account invested in are likely non-shariah compliant, and I had spent a portion of the amount that I had received as I had erronously thought that I was merely spending the amount that I had paid over the years in premium (since it was operating at a loss). Now that I know that the money is likely haram, I need advice on what to do to purify my wealth. For context, I had also recently quit my job and am in the midst of looking for another job. Thus I was hoping to use the rest of the amount to tide me over.
Answer:
The Global Savings Account by Aviva is a conventional investment-linked life insurance product that combines insurance protection with investments in selected unit trust funds. As a general principle, Muslims are encouraged to opt for Shariah-compliant alternatives, such as takaful and Shariah-compliant investment products, where available.
The concern of permissibility aside, in this case, as the questioner raised, is whether there are any impermissible gains that require purification upon surrendering the policy. The individual who raised this question mentioned that the surrender value received was lower than the total premiums paid over the years. This means that the policy was surrendered at a loss, and no investment profit or surplus was realised.
Allah SWT says regarding those who repent from riba:
وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ ٢٧٩
“But if you repent, then you may retain your principal; neither wronging nor being wronged.”
(Surah al-Baqarah, 2:279)
This verse establishes the principle that a person is entitled to recover his or her original capital (ra’s al-mal), while any unlawful gain beyond the principal should not be retained.
Accordingly, although subscribing to a conventional investment-linked insurance product is generally not Shariah-compliant, there is no additional Shariah issue arising from the amount already spent in this case, as the surrender value was lower than the total premiums paid. The amount utilised came from the investor’s own capital rather than from impermissible investment gains.
Regarding the issue of purification, there is generally no purification required because no identifiable non-permissible gain was realised. Purification applies when a person has received impermissible income or returns from a non-Shariah-compliant investment. Since the surrender value is lower than the original capital invested, there is no excess amount that requires purification.
Accordingly, the remaining surrender proceeds may be used for living expenses, as they represent the individual’s own capital rather than impermissible profits.
Nevertheless, where a person has knowingly or unknowingly entered into a non-Shariah-compliant financial product, they should repent (tawbah) to Allah SWT, discontinue the impermissible arrangement where reasonably possible, and strive to avoid similar products in the future.
In conclusion, there is no purification required in this particular case because the policy was surrendered at a loss and no non-permissible gains were realised. Muslims are encouraged to exercise reasonable due diligence when selecting financial products and, where available, choose Shariah-compliant alternatives. If there is uncertainty regarding a financial product, seeking clarification especially with a licensed financial advisor and islamic finance expert before investing can help avoid similar concerns in the future.
We pray that the individual who raised this question is granted ease in finding a new job. May Allah SWT grant him abundant and blessed sustenance, and replace what was lost with that which is better in this world and the Hereafter.
And Allah knows best.
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