I have an insurance policy into which I have paid substantial sums of money. In light of insurance being unlawful in Islam, what should I do now? If I cancel my policy, I will lose the benefits of everything I put into it.
the Fatwa Department Research Committee - chaired by Sheikh `Abd al-Wahhâb al-Turayrî
As long as you know that commercial insurance is forbidden, we advise you to cancel the contract you have with this company if this will not cause you undue harm. May Allah provide you from his grace with something better.
Allah says: “And for those who fear Allah, He (ever) prepares a way out and He provides for him from (sources) he never could expect.”
If you cannot cancel the contract without incurring upon yourself undue hardship, then if something happens whereby the company is liable to pay you something, you will not be entitled to more than the total amount that you have paid into the policy since you started paying premiums.
And Allah knows best.
Source: Islam Today
-- Al Arabiya Digital