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.

Confused About Financial Products?

You can chat directly and receive the best offers from the experts.

  • user image

    No Name

    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.

    2019.08.01 18:0

    Please leave your knowledge and opinion!

    Related Forums

    A person with disability needs insurance.

    I have been ill for the past weeks

    Should I really get one?

    The insurance company that I invested is closing.

    Is my kid eligible to get an insurance?

    Who is/are eligible for a Personal Accident Insurance?

    Related Reviews

    Loans that allow borrowers to pay as little as half of their regular monthly instalments

    1st Credit Debts Consolidate Loan / 1st Credit SG

    UOB does not offer the cheapest car loans in Singapore, due to its higher than average interest rates. However, the bank can be a good source of financing for individuals that are unable to obtain less expensive loans.Additionally, UOB's HP50 car loans give borrowers added financial flexibility. This is because these loans allow borrowers to pay as little as half of their regular monthly instalments for the first 59 months of a 5-year loan. In the final month of this loan, borrowers can choose to either fully repay their loan with one final instalment, trade their current vehicle for a new car or enter a sell and lease back scheme with their dealer.

    Enjoy the convinence of merging debts into one account with a fixed interest rate.

    Citi Debt Consolidation Plan / Citibank Singapore

    Debt consolidation loans from Citibank allow you to merge debts into one account with a fixed interest rate. Citibank bundles the debt consolidation loan into the Citibank Debt Consolidation Plan. This plan also provides you with a capped revolving credit facility, to be used as a payment method for daily expenses. If you need to get your debts organised, consider a debt consolidation plan from Citibank.

    Unlike its competitors, OCBC does not charge a processing fee

    OCBC Debt Consolidation Plan / Oversea-Chinese Banking Corporation

    OCBC's debt consolidation loans charge slightly higher interest rates compared to those of other lenders in Singapore. For this reason, the bank's product is not the most affordable. On the other hand, individuals who are unable to obtain the most affordable debt consolidation loan offers could consider applying for OCBC's Debt Consolidation Plan as a backup option. Unlike its competitors, OCBC does not charge a processing fee and it does not list rates "from X%", which suggests that its rates are more transparent and accessible. Another drawback of OCBC's debt consolidation loans is that they are only offered for tenures of 3 to 8 years, which is restrictive for individuals that would prefer a longer or shorter term debt consolidation plan.

    UOB's debt consolidation plan is an effective yet expensive alternative to other plans

    UOB Debt Consolidation Plan / United Overseas Bank

    UOB's debt consolidation plan is best viewed as an expensive alternative to other plans because the bank advertises interest rates that are higher than those of its competitors. Borrowers that have not previously used UOB's services are however eligible for slightly better rates but it is unclear what rates these borrowers will receive in due to the vague wording on the UOB's website

    Low interest rates and awesome cash rebates

    Maybank Debt Consolidation Plan / Maybank Singapore

    Maybank's promotional interest rates for its debt consolidation loans are as low as 3.88%; EIR 6.92% making it an affordable option for borrowers that are able to obtain the bank's best rates. Additionally, Maybank is offering a cash rebate of S$388 to approve applicants. Maybank's current promotions for its debt consolidation plans make these loans a competitive option.

    Lowest debt consolidation plan interest rates in Singapore with effectivly low interest rates

    CIMB Debt Consolidation / CIMB Bank Berhad Singapore Branch

    CIMB advertises the lowest debt consolidation plan interest rates in Singapore, with effective interest rates as low as 7%. This is a great rate for some borrowers that are actually able to secure it; however it is difficult to assess the total cost of CIMB's debt consolidation loan compared to a loan from another bank.Additionally, because POSB, DBS and Maybank are offering cashback promotions and HSBC is offering S$100 cashback and waived processing fees, CIMB's lack of promotions and 1% processing fee make it a less appealing source for debt consolidation loans. It also offers loans with shorter durations of up to 8 years than many other DCP lenders in Singapore.

    Confused About Financial Products?

    You can chat directly and receive the best offers from the experts.