Insurance as per say is not Haram in Islam! But today since most of the life insurance is related with Riba or Interest, so Riba-based life insurance or interest-based life insurance is haram.
Well, interest is the 12th major sin in Islam, in today’s world, most of the life insurance are related with interest and Riba based system so any life insurance or any insurance whether it be car insurance or any insurance which is linked with Riba or linked with interest it is Haram.
What do they do they take your money they take the money from thousands of people from tens of thousands of people they pull it together and they take your premium they put in a bank or they put it in a money-based instrument where you get fixed money on fixed period of time and based on the returns they get the use that returns in taking care of the people a person who have died or a personal accident so this system based on Riba is Haram.
But we have an Islamic alternative called as Takaful in the Takaful system in the Islamic life insurance system what they do the money you give the invest in a Halal investment it is not Riba based it is Halal as per the Islamic Shariah and the return they get from this Halal based investment they utilize for taking care of a person had an accident or a person died so if it is an Islamic life insurance based on the Takaful based on the Islamic Shariah the life insurance per say is halal but if is based on a non Shariah compliant or a Riba based or interest based it is Haram.