Personal Finance Question: Health Insurance

Salaams

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?

Many thanks for your advice

Wasalam

May Allah bless you.

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.

And Allah knows best!

As salaam alaykum Mufti saab.

Hope you are well.

Jzk for your reply.

So there are two instances:

  1. Where the company provides the benefit at no cost to you. Which from your answer seems it’s permissible because it can be treated as a gift.

  2. Where you partially pay or pay a discounted price, which I take is impermissible?

Jzk,
Ali

Wasalam

May Allah bless you.

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.

And Allah knows best!