Fahim Umaid
03-21-2007, 04:50 PM
Assalaam alaikum
I am not sure if I have posted this in the correct place or if there is a thread on this already (I am new to these forums and I did search them).
This is a type of Insurance, wherein the person insured pays a monthly premium till the maturity date. In the event this person has a health condition as listed in the contract (say Stroke or heart attack etc.) the insurance company pays the agreed insured amount (say $100,000- to cover additional expenses like lost wages or modifications to the home etc.). If the insured stays healthy, upon the expiry of the said contract term, all the premiums paid are returned to the insured without any extra payment.
While I am aware that the $100,000 maybe from riba related activities (since these type of plans are institued by insurance companies), however I am confused due to the fact that, I get back what I pay, if I don't have any sickness till the maturity date of the policy. The insured person also risks to loose the whole amount paid, if he doesn't make prompt payments to his policy while being healthy. Also, this is not a death insurance wherein when the person dies he gets the insured amount. In this policy, if the insured dies, only the premiums paid are returned to his family.
Is this type of insurance allowed in Islam? In a true islamic world, there will be the Khilaafat to take care of the family of the sick "bread winner" or the deceased family. Are there any alternatives in the present scenario?
Alhamdullilah, I have Tawakal in ALLAH. I am hestitant to take this till I know that it is Halaal.
Jazak ALLAH Khair
I am not sure if I have posted this in the correct place or if there is a thread on this already (I am new to these forums and I did search them).
This is a type of Insurance, wherein the person insured pays a monthly premium till the maturity date. In the event this person has a health condition as listed in the contract (say Stroke or heart attack etc.) the insurance company pays the agreed insured amount (say $100,000- to cover additional expenses like lost wages or modifications to the home etc.). If the insured stays healthy, upon the expiry of the said contract term, all the premiums paid are returned to the insured without any extra payment.
While I am aware that the $100,000 maybe from riba related activities (since these type of plans are institued by insurance companies), however I am confused due to the fact that, I get back what I pay, if I don't have any sickness till the maturity date of the policy. The insured person also risks to loose the whole amount paid, if he doesn't make prompt payments to his policy while being healthy. Also, this is not a death insurance wherein when the person dies he gets the insured amount. In this policy, if the insured dies, only the premiums paid are returned to his family.
Is this type of insurance allowed in Islam? In a true islamic world, there will be the Khilaafat to take care of the family of the sick "bread winner" or the deceased family. Are there any alternatives in the present scenario?
Alhamdullilah, I have Tawakal in ALLAH. I am hestitant to take this till I know that it is Halaal.
Jazak ALLAH Khair