Ref. No. 41/950
In the name of Allah the most Gracious the most Merciful
The answer to your question is as follows:
Interest and all interest based dealings are strongly forbidden in Islam. The Qur'an and Ahadith are very clear on the prohibition of interest. The Holy Quran says that those who return to dealing in interest are the companions of the Fire and that they will face a painful punishment in the Hereafter. The Hadith says that the receiver and the payer of interest, the one who records it and the two witnesses to the transaction are all alike in guilt. It means involving in such a transaction in any way is prohibited for a Muslim.
Thus buying Life Insurance policy which comprises of interest and gambling is not allowed in Islam. However, if it is extremely necessary or legally required, then it maybe allowed with some conditions. So before proceeding ahead, one must consult the Ulama with full details.
And Allah knows best
Darul Uloom Waqf Deoband