السلام عليكم ورحمة اللہ وبرکاته.
I hope this message finds you well. I have one question about income protection from an Islamic organization. In Australia, there is mandatory super fund which employer pays on your behalf to different financial institutions who are managing super fund so employer will ask you for the institution and will transfer 10-11% of your monthly salary to that super fund which they will invest and upon your retirement you will get in form of pension etc, you can’t withdraw it before retirement or any other reason like you are leaving country permanently so you can withdraw. As those financial companies are using that super fund in all kinds of investments like arms, alcohol etc so what I did I transferred my super fund to an islamic financial institution called Hejaz as they say they invest only in things which are permissible. So when I transferred my superfund with them they offered me some additional features. One of them is income protection that if I lose my job they will pay me upto 70% of my salary to meet the expenses and for that they will deduct monthly 120$ from my superfund which my employer will transfer them, I will not pay anything from pocket, instead they will use amount from my superfund. I want to know if its permissible to do that? I searched on different websites but as income protection from conventional financial institutions can be different so I want to ask about my specific case which is managed by Islamic financial institution through a mutual fund scheme where all their customers contribute and in case of savings etc they will return some share as well, this is what they mentioned. Can you please support on this to know its permissibility? JazakALLAH Khair.
Wasalam wr wb
May Allah bless you.
What I would say is that, if Hejaz has a valid shariah certification from a reputable shariah board, then you can trust their product offerings. I tried to check on their website quickly but I did not see it personally.
Kind regard,