Original Question: Can you explain why the reasoning for accepting whole life insurance in Singapore is based on not being any takaful here? Aren’t the two options provided here already reasonable solutions to avoid something impermissible? Thanks in advance!

In some instances, the whole life policy could be better for the individual than the term policy or ILP.

For example, a person might not be disciplined enough to pay the term insurance premium. Thus, the insurance will lapse when they need it the most. Furthermore, if you have outlived your term insurance and plan to renew, your premium is adjusted based on your current age and health, which can mean much higher rates.

Another instance where an ILP is unsuitable is when the person has a lower risk profile and can’t stomach the risk involved in the investments.

All these and the different situations a person faces may result in the two options mentioned being unsuitable. It’s up to the advisor’s professional judgement on whether to recommend whole life, knowing that despite the mentioned prohibited elements present in whole life policies from an Islamic perspective, it is still the best possible option for the individual based on their circumstances.