I have a question which I hope you can answer. My employer gives me a portion of money for things like life insurance, critical illness insurance etc etc, am I allowed to take them policies?? Part of the wage package.
May Allah bless you.
These incentives are in exchange of part of your wage? Or are they benefits which comes on top of your agreed salary? For example, I have an agreed salary with my employer but I also get certain benefits which I can opt in if I want to e.g. breakdown cover, discounts on public transports etc.
The total package is made up of the salary and a separate fund. The salary is taxed, but the fund is not taxed… this fund is used to pay for the pension, death in service insurance (which is basically a non assessed life insurance), critical insurance, dental insurance etc etc… if I use the fund to buy these then I am not taxed on the fund… none of it is forced (involuntary). I can take it as cash, but then I get taxed on it.
Are you saying that you are entitled to a share of the fund whether you take that share in the form of benefits or cash?
What if you decide not to take the benefits then would the cash automatically be transferred to you?
My current understanding is that you own a percentage in that fund, then you chose to either buy things like insurance policies or take out the cash. Let me know if I am wrong.
Yes your understanding is correct Mufti sab.
In that case, you cannot take out the insurance policies. Because ultimately you are using your own fund to buy the policy. It is not the employer who buys it for you. So the best thing is to either take out the benefits that are shariah compliant (if any) or to either let it accumulate in your pension fund (provided it is shariah compliant) or to take out the cash for yourself.
And Allah knows best!