While life insurance itself is generally prohibited in Islam, the death benefits received by heirs can become permissible under specific circumstances. If the money is inherited, it is allowed for the heirs to accept and use it, provided that it is not prohibited in its essence, and it should be distributed among the heirs according to Shari`ah.

Insuring a mobile phone is a type of commercial insurance which is prohibited in all forms because it involves gambling, ambiguity and interest.