Some retirees sell some of their monthly pensions.
For example, they sell one riyal for one hundred and receive them in cash but the sold riyal is deducted throughout the lifetime of the seller. When the latter dies, the contract comes to an end and their children start to receive the full pension. What is the ruling on such a sale?
This kind of sale is not permissible. Rather, it is Haram (prohibited) because it is selling of money for money in which the exchange does not take place in the same sitting as the contract is made. It also involves inequality between the two returns while they are of the same type. Consequently, the sale which is mentioned in the question comprises both Riba Al-Fadl (usury of excess, selling an item for another of the same type, on the spot, but in excess) and Riba Al-Nasi'ah (usury of delay, conditional excess for delay of payment).
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.