Wealth insurance plan in halal stock

[badams122390]

Assalamualaikum akhi,

I am based out of India.

Tata aia insurance provides a wealth insurance plan, where they invest in halal stock (non interest bearing instrument).
They invest in nifty shariah index of India, which captures halal stocks.
Also this insurance plan can be used in tax savings, Wanted to know if it's halal to invest in it.

I currently pay huge amounts in taxes, with growing family willing to know if there are anyways by which I can get exempted from taxes in halal ways.

In this wealth plan, as this is being invested in halal stock rather than haram interest related things. I was thinking can we take it.

Imagine customer pays premium of 1 lakh per month for 5 years( insured amount 10 lakhs,) following 3 are the possibilities

1) customer is alive, stocks go up - 7 lakhs - he takes it.

2) customer is alive, stocks go down - 3 lakhs - he takes it

3) customer is no more, he had directed his family to take the current value of his investment.
I.e insurance company pays 10 lakhs, if current value of investment is 7 lakhs/3 lakhs, customer family takes only 7 lakhs/3 lakhs and gives away the rest with no intention of reward.

I am just curios with the wealth insurance plan, cause this will check the following pain points of average working class muslim.

1) tax savings
2) stock market investment
3) similar to index funds/mutual fund exposure

My questions

1) is this halal?
2) if the customer conveys to his family members to give away the amount exceeding his current value of investment away, in case of his death. Will this become halal?

If anyone has pointers to mufti, who can understand the technicalities of insurance/stock markets please let me know. Jazakallah, Allah knows best

 

[jenniferlw]

@badams122390 Since you won't lose your base principle amount in any case, it doesn't sound like halal.

How do you know that tata aia invests only in halal stocks? How do you ensure your family members give away the amount exceeding his current value of investment? e.g., if your stock value is at 4.5 lakhs, will your family members contribute 50,000 out of their own pocket?

 

[badams122390]

@jenniferlw Jazakallah bhai, edited my post along with answers

1) the plan invest in nifty shariah index. (As per the conversation I had with them)
2) my spouse and parents are religious financially literate, so likely will talk to them about this.

3) as it's invested in stock market, and if customer is still alive by the end of the plan term, he will be eligible to take away the current value of his investment.
Please refer to my post, with updated example.

 

[jenniferlw]

@badams122390 If the 3rd point of your post (if customer is no more) is applied then I guess it should be halal. Better to check with someone else too. Also, if you are looking to invest in stock markets, better to put some investment in SPUS (halal top 500 companies of US). It'll be more diversified rather than putting all eggs in one basket (only nifty). Although I don't know whether any tax savings will be applicable here. You'll have to research that.