Would taking out private health insurance be considered halal?
What if private health insurance is part of a workplace benefits package?
I have also come across Benenden Health who are not a health insurance company but say on their website “All membership fees are paid into a communal pot for the benefit of all members” (to provide additional health care). Although it is unclear whether they invest these fees or utilise interest. Would taking out cover with this company be permissible?
Convential private health insurance are not shariah compliant. If it is a legal requirement then there may be scope to tolerate it.
However if the private health insurance is offered to you as part of a benefit package from your employer, then it is permissible for you to opt in.
Yes your understanding is correct. In point 2, there is also a possibility that the insurance is part of your wage i.e. instead of paying you the full wage, the employer automatically pays you a reduced amount and uses the remaining balance to cover the cost of the premium. So you have to be careful and if needed, carify with your employer, whether the insurance is an added benefit i.e. free, or is it in exchange of part of your wage.
@Mufti_Billal I was wondering if you had a chance to look at https://www.benenden.co.uk/ as an alternative to conventional private health insurance. Would their model be considered halal if purchased directly (rather than being provided as a benefit by an employer)?
What I’ve seen in the UK is that companies will pay it on your behalf and may or may not be part of salary sacrifice scheme.
However, HMRC will tax you on it, as they see it as a cash benefit. So if your company pays the cost of the health insurance and you only pay the tax on it, is this permissible?