My friend recommend to me a financial policy. It works like this. For 2 years every month I pay $70. The amount will be for two years $1680. After 2 years onwards every year I will receive $1000 for another 25 years, at the same time I will be paying $70 monthly. At the end of 25 years if death occurs my family will get $10,000. Is this policy Haram or Halal?

Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

This contract is nil and void.  It is unlawful in Shariah.  Its reality is that it is a loan that brings a profit which is a kind of Riba.  There is no right that allows you to take 1000 yearly while you pay only 70 monthly and no right that allows your family to take 10000 in case of death.

So, fear Allah and beware of such transactions.  Do not be deceived by instant profit, as its end is punishment and sorrow.  Do not get involved in this transaction.

May Allah guide you and us to the right path.