Is it ribaa if I purchase long term care insurance?
According to sharia is it ribaa if I purchase long term care insurance? All things considered.
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I believe ribaa is when someone borrows money and has to pay back more than the amount he borrowed. That is with some interest. In modern times some Islamic banks have provided call it Islamic loans. In the case of insurance, the perspective of the scholars differ as some scholars approve it on the ground that it is a necessity in modern times and it is a systematic way of cooperating to protect one another, while others say it is only acceptable if it is mandatory by law. Some scholars also argue that a house or car taken on instalments is not exactly transaction of ribaa, because in cases of cash borrowing you spend the money borrowed on your necessity, while in cases of a house or car you have an asset and you use it for your convenience like save on rent. Personally I will advise that you avoid any purchase on loan if you can do so.