Seeing various policies and their benefits, one can say that it does meet to some extent one of the aims of the Baitul Maal, i.e., financial help to the needy.
For Baitul Maal, the Muslims used to contribute Zakat and non-Muslims used to contribute with Jizya. In life insurance, people have to pay premium. However, paying Zakat (almsgiving) in the form of minimum 2.5% of the wealth remaining in possession over the year after meeting the basic needs is an obligation on all Muslims.

All the needs of a person as an individual or as a group in which the needs of all are interdependent, are taken care by the insurance system. The difference between Baitul maal and life insurance is that in Baitul maal the needy was not obliged to pay any contribution unless he is or he was capable of paying. But in life insurance, one has to buy a policy first. Then he can avail all the facilities of getting financial help.

It is not possible to apply a hard and fast rule of equal help to every contributor. Neither it is possible. Depending upon various factors like age, income, working conditions, gender, etc., the premiums and the benefits can be determined. It is true that the benefits are more for the insurer than the insured, but there is no other choice. Whatever is available, one has to choose the best one to suit his requirements. However, one out of ten from this pool of contribution gets more than others if he meets any misfortune.

Types of Life insurance policies

There are two types of policies:

1. For individuals
2. For Groups