Is there such thing as Halal Insurance In Singapore?

Sun, Nov 13, 2011


Note: This is a touchy issue, and may touch the raw nerves of a few people. If you will like to clarify on the matter, do it in a tactful and respectable manner at

My blog attracts hundreds of visitors every single day and it is open for all.


First and foremost, I will like to make it clear that, I try not to touch on this issue, as 70% of my RSS subscribers are Non Muslims riskofhighunsubscriberate, but I will like to offer my transparent perspective on this. (this might be an interesting read for you too)

I am not an ustaz or a religious leader. Neither am I, a scholar or an academician.

…but I do qualify myself, as a Malay/Muslim financial consultant in Singapore. In my 4 years of practice, I have done 4 death claims, and numerous hospitalisation claims. All are Muslims. I talk to people on the ground, every single day on financial planning.

The question that I will like to answer today, is there such a thing as halal insurance in Singapore?

There are many strong views on this, and all are entitled to your opinion. I am offering you mine. You can subscribe to it or you can choose to reject it….but do read on….

1) Takaful Plans

In Singapore, you might have heard about Takaful plans. Takaful plans are offered by 2 entities, a cooperative and a commercial bank.

Unlike Takaful plans in Malaysia, Indonesia or other Muslim countries, Takaful plans in Singapore, is basically an investment plan also known as Investment Linked Policies. It is an investment plan that invests your money in a fund, called Takaful fund. It is a shariah compliant fund and the plan comes with insurance coverage. Should death, total permanent disability or 30 critical illnesses were to strike, halal money from the Takaful proceeds will be given to the beneficiaries.


Takaful is good, but not for all. This is because, Takaful is an investment plan. A responsible financial consultant, will not recommend an investment plan, to a conservative 50 year old Pakcik (uncle), looking forward for his retirement.

Neither, will he recommend the investment plan, for one who has a short term horizon of say, 5 years or one who is risk averse.

Nor, will he treats Takaful investment plan, as a “one size fits all solution” to all his clients, because Takaful investment plan does not cover many things, example, hospitalisation.

He must educate his clients, that Takaful is an investment plan, that offers coverage and returns subject to the performance of the fund. ifnotyoulosemoneyclientwillfindyoulater

In Singapore, under section 27 of the financial advisors act, a financial advisor must determine the “risk profile” of the client before recommending him, financial instruments. If our client are able to take a bit of risk, Takaful investment plan is the solution to it.

So, if one is risk averse, how do we go about it?


2) Cooperative insurance is the alternative.

When I recommend a life insurance policy to a client, I will give him choices. How do you want to get yourself covered?

Takaful Investment Plan with coverage? OR….. Cooperative Life Insurance?

There is a fatwa by MUIS, specially for the Muslim community in Singapore, on the permissibility of getting cooperative insurance in Singapore.

Excerp from the fatwa,
“(i) Insurans yang ditadbirkan oleh syarikat kerjasama yang dianggotai oleh semua anggota-anggotanya untuk menjaga maslahat mereka dan apa yang diperlukan oleh anggota-anggotanya dari segi bantuan dan perkhidmatan, adalah seperkara yang diakui oleh syarak dan ia dari jenis bantu-membantu dalam kebajikan.

(ii) Begitu juga insurans syarikat mirip kerjasama (kooperatif) bagi maslahat masyarakat umum dan apa yang termasuk di dalamnya dari perkara seperti pengangguran, keuzuran, umur tua, kemalangan waktu bekerja dan yang seumpamanya, pihak konferensi telah memutuskan jenis insurans seperti ini adalah diharuskan. Dari itu ternyata bahawa insurans jenis kooperatif sahajalah yang dibolehkan oleh persidangan ulama antarabangsa itu.

Ini bererti juga bahawa insurans yang dikelolakan oleh syarikat-syarikat swasta yang bertujuan untuk mendapat keuntungan peribadi atau untuk faedah segelintir manusia telah tidak dapat pengakuan daripada para ulama yang menyertai persidangan Islam antarabangsa ini.”


I shall not go in details, the need of having such fatwa in Singapore. Nevertheless, this fatwa is helpful, to serve as an advice, for many Singaporean Muslims, in need of insurance, but do not know if they can get it.

Hospitalisation bills are enormously expensive? If no insurance, how?
Takaful Investment Plans are good, but I am risk averse. I need insurance, how?
Car insurance in Singapore is mandatory? If no insurance, how?

Answer: If you are living in Singapore, and you need insurances that Takaful Investment Plan does not offer, like hospitalisation insurance, car insurance, business insurance, mortgage protection insurance, property insurance, travel insurance, pet insurance, Do Get It From A Cooperative.

At the end of the day, the choice is yours! Wassalam….. 🙂


p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…

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This post was written by:

- who has written 276 posts on The Official Helmi Hakim Website.

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients' financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

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59 Responses to “Is there such thing as Halal Insurance In Singapore?”

  1. Ibrahim Says:

    Is it possible for Singaporean to get insurance from Malaysia?

  2. Helmi Hakim Says:

    Frankly, I am not sure, if a Singaporean can get insurance from Malaysia, or the specifics and clauses involved.

    However, for sure, foreigners cannot get insurance from Singapore. They can only get insurance in Singapore if they are either employment pass or S Pass holder with a residential address in Singapore.

    …and if they do apply, example hospitalisation insurance plan in Singapore, they can only claim hospital bills from hospitals in Singapore.

    I believe, it works the same way, if a Singaporean wants to apply insurance in Malaysia.

  3. Curious Says:

    Hi, I just graduated and am considering a job as a financial consultant. However, my family and alot others discourage me as they tell me that selling insurance is wrong in Islam as it involves interest. What are your views on this?

  4. Helmi Hakim Says:

    Congratulations! You have just graduated and are ready for your next phase of life. 🙂

    As elucidated on my post earlier, as a financial consultant, you have a choice to market Takaful investment. It is an investment plan that invest your money in Takaful fund, which is 100% shariah compliant. The plan comes with insurance coverage, and should the insured dies, money from the Takaful fund will be given to the beneficiaries. There is no involvement of interest here.

    Question: What if your client, is risk averse, and dont want investments?

    Alhamdulillah…You can promote cooperative insurance. Cooperative insurance does not involve interest. Cooperative insurance involves bonuses.

    By law, under the cooperative act, cooperative needs to share profits with the policyholders, your future clients. If cooperative makes more money, they share it, with the policyholders.

    ….and cooperative insurance is also transparent. The yield of your policies are disclosed in the local newspapers, like Straits Times, Berita Harian, Lianhe Zhebao and Tamil Murutsu, every year.

    Being a financial consultant, is a noble and well respected profession. If you love to join us, do email me at helmihakim (@)
    Looking forward to hear from you soon! 🙂

  5. Hidayah Says:

    Takaful investment is for long term or short term? Takaful investment is only available with hsbc bank? Or ntuc income? Pls advised in details..

    Can u explain which insurance policy is not accepted in islam..? U can email me the details.. Thks

  6. Helmi Hakim Says:

    Salam Hidayah.

    Takaful investment is for long term. I recommend my clients who have an investment time horizon of at least more than 10 years, to invest in Takaful fund.

    Takaful Investment is available via HSBC and NTUC Income Cooperative.

    Insurance per se is not haram. Insurance becomes haram when there is an element of riba. Takaful fund is a shariah compliant fund which emphasize on profit sharing, and does not contains elements of riba. It also does not invests in pork, gambling or any haram activities.

    In Singapore, it is compulsory for financial advisors to evaluate client’s risk profile prior to recommending them investment plans. Personally, if client have the time horizon and can take risk, I will recommend them, Takaful Investment Plan with insurance coverage.

    If not, I will propose cooperative insurance.

    Another 2 factors that makes insurance haram are Maysir and Gharar.

    Example of Maysir (gambling). I buy insurance, I pay so little, I die, get a lot of money.

    Example of Gharar (uncertainty). I buy insurance, I dont know, will claim or not.

    As for the factor of maysir (gambling) and gharar (uncertainty), they are being remedied if the instrument is provided by a cooperative. The foundation of a cooperative is donation, mutual support, helping each other out, when in need or in hardship due to the peril or hazard that befalls them.

    As for HSBC Takaful Investment plan, it is also structured as contract of donation.

    Surah al-Maidah, verse 2, reads to the effect:
    “Help (ta’awun) ye one another in righteousness (birr) and piety, but help ye not one another in sin and rancour, fear Allah, for Allah is strict in punishment”.

  7. Hidayah Says:

    Indirectly it means dat life insurance is haram. Correct? It’s like putting some value to your life.

    Usually saving plans and investment plan with other insurance company or even banks will tag along with some insurance coverage.. It will help to settle premium n also give some cash to family in case of death or permenant disability of the insurer.. With high standard of living in Singapore, we do need some kind of protections for ourselves n family.. So takaful investment, does it work that way too? E.g invested $100 a month for 10yrs but with insurance protection of $100k in case of death and permenant disabilities?

  8. Helmi Hakim Says:

    A financial instrument, either savings, investment or insurance plan is halal, if it is free from riba, maysir and gharar.

    On the specifics of the plan, it is best that we can meet up and I will explain to you further. I have emailed you my contact number, and appreciate your reply for an appt. Insya’Allah.

  9. Noorashikin Says:

    Salam. Need advise with regard to some insurance matter. Pls forward hp no via the e-mail address given.tq

  10. Helmi Hakim Says:

    Waalaikumsalam Sis. I have forwarded my hp number to your email address.
    My contact number is 96520134. You are welcome.

  11. Muhammad Says:

    Assalamu’alaikum brother.

    The Fatwa is in relation to group company insurance right? So in what way are the principles of co-operative insurance from NTUC Income different from other companies, say Prudential, Great Eastern, etc.?

  12. Helmi Hakim Says:

    Waalaikumsalam Bro Muhammad.

    The question in the Fatwa is on group insurance, but the explanation covers on the basics, whether can you get insurance, or can you not. I am applying the fatwa
    in Singapore’s context.

    …and from this excerp,
    “Begitu juga … insurans syarikat mirip kerjasama (kooperatif) bagi maslahat masyarakat umum dan apa yang termasuk di dalamnya dari perkara seperti pengangguran, keuzuran, umur tua, kemalangan waktu bekerja dan yang seumpamanya, pihak konferensi telah memutuskan jenis insurans seperti ini adalah diharuskan. Dari itu ternyata bahawa insurans jenis kooperatif sahajalah yang dibolehkan oleh persidangan ulama antarabangsa itu.

    Ini bererti juga bahawa insurans yang dikelolakan oleh syarikat-syarikat swasta yang bertujuan untuk mendapat keuntungan peribadi atau untuk faedah segelintir manusia telah tidak dapat pengakuan daripada para ulama yang menyertai persidangan Islam antarabangsa ini.”
    We can deduce that you can get insurance from a cooperative.

    and if you were to read,

    “Oleh kerana Skim Insurans Berkumpulan ini tidak dapat dipastikan sama ada termasuk dalam insurans jenis kooperatif ini atau pun bukan, maka Jawatankuasa Fatwa berpendapat bahawa masalah ini terpulang kepada diri masing-masing untuk memilih pendapat yang mana satu yang perlu bagi dirinya.”

    ….which suggests the importance to find out if the group insurance is from a cooperative or not…and if there is no means to confirm, the individual will be left to make judgement.


    My stand as of my explanation in the blog post, my first priority is to promote investment in Takaful fund, which is 100% shariah compliant.

    Risk is being measured by standard deviation. If the client risk profile can accept standard deviation of at least 30% and above, I recommend Takaful Investment. If not, I propose cooperative insurance.

    If what client need is not covered by Takaful investment plan, I will also propose cooperative insurance. An example will be hospitalization plan to cover hospital bills.


    How is cooperative insurance different than commercial insurance companies?

    Cooperative insurer advocates profit/risk sharing (as per cooperative act), transparency (disclose policy yields every year in the local papers) and most importantly, the fundamental foundation of cooperative is donation, mutual support, helping each other out, when in need or in hardship due to the peril or hazard that befalls them which is consistent with what is being encouraged in Islam.

    Surah al-Maidah, verse 2, reads to the effect:
    “Help (ta’awun) ye one another in righteousness (birr) and piety, but help ye not one another in sin and rancour, fear Allah, for Allah is strict in punishment”.

    As this is a public domain, and myself representing a cooperative insurer, I choose not to talk infavourably about other insurance companies, and I hope you respect my decision.

    Thanks Bro for the enquiry. 🙂

  13. MR Says:

    Assalamualaikum Brother,

    Happened to chance upon this write up while looking up on insurance. You mentioned that “Cooperative insurer advocates profit/risk sharing (as per cooperative act)”.

    My understanding is that the pool of money collected as a cooperative is eventually invested by the insurance company. I wish to clarify, are we able to find out what investments are made with the fund that is collected. Since you’ve mentioned that the profit will be shared and also the fund is used for disbursement, knowing where the pool of money is invested in would determine the permissibility of it right? Unless there is a governing body which oversees the investment of the fund through sharia means, would there be an assurance that it is fully sharia compliant?

    Are you able to clarify? Thanks. =D

  14. Helmi Hakim Says:

    Waalaikumsalam Brother,

    First let me make it clear, that the first choice of every Muslim in Singapore is to get Takaful Investment Plan.

    Takaful fund invests in shariah compliant funds and catered specially for Muslims. The underlying stocks invested in the fund is available for everyone’s perusal.

    As long as the Contract is gratuitous in nature, or structured as a form of
    donation, Maysir and gharar are remedied.

    As expained in the above comments, the structure of cooperative fulfills that, and clients can sign an Aqad form to substantiate and confirm that in writing.

    However, as a responsible Muslim financial planner, we need to ensure that what client needs is fulfilled by the plans that they undertook, in consistent with their risk profile and time horizon.

    Example for hospitalization insurance plan. Or disability insurance plan. If its not covered under Takaful, we recommend cooperative insurance.

    There is no specific ways for us to find out, where the cooperative keeps the money for premiums collected for such insurance. What we know for sure, is cooperative sets aside reserves to pay out claims when needed.

    An analogical example, that i can give you is like you going to a doctor, when you are sick… You pay money and the doctor gives you panadol… The panadol cures you, but we are not able to ascertain, for sure what the doctor spend on, using the money that you gave him.

    You already donated your money for the insurance policies. If nothing happens to you, Alhamdulillah, the premiums you pay, will help benefit others who are in need. You are doing a good deed.

    If something happens to you, money from the pool/reserves, will be used to help you, at the time when help is most needed.

    This is consistent with Surah al-Maidah, verse 2, which reads to the effect:
    “Help (ta’awun) ye one another in righteousness (birr) and piety, but help ye not one another in sin and rancour, fear Allah, for Allah is strict in punishment”.

    Functions of cooperative, involves risk/profit sharing. An example, recently, for our disability insurance plans, due to low claims, we are able to give rebates in the form of discount on premiums for our policyholders…. We share the risk/profits with the participants of the plans.

    Hope that answers your question. Insya’Allah..

  15. Faizah Says:


    Thank you for the article. I have invested in takaful since 2008.
    However, I am not so clear as to what is meant by a cooperative. I hope that you can help me with my queries.
    I have recently signed up for a hospitalization insurance with NTUC income with an assist rider plan. Is this considered a cooperative insurance?
    I also travel very often and have been consistently buying travel insurance from Chartis. Is my travel insurance considered a cooperative insurance?

    Once again, thank you for writing this article. It has been such an eye opener for me. Thanks for taking the time to answer my queries.

  16. Helmi Hakim Says:

    Waalaikumsalam Sis,

    Congratulations and thank you for supporting shariah compliant funds in Singapore. 🙂

    In Singapore, there is only one cooperative insurer, that is NTUC Income Cooperative. The rest of the insurers are known as commercial insurance companies.

    Thus, all insurance plans underwritten and managed by NTUC Income, I conclusively term it as cooperative insurance. This includes the hospitalization insurance plan with an assist rider plan that you recently signed up with NTUC Income. Thanks for your enquiry. 🙂

  17. shifa Says:

    Assalamualykum warahmathullahi wabarakathu.. i have recently come to know and is studying about Takaful. We would like to change all our loans say, housing, car and other insurance to the halal ones. I did’nt know HSBC and NTUC had Takaful in Singapore. (We are PR) Do they have housing loans as well?

  18. Helmi Hakim Says:

    Waalaikumsalam warahmatullah hiwabarakatuh.

    As explained in my blog posts, in Singapore, there are only investment plans, that invest your money in Takaful funds.

    As of now, there are no Islamic loans in Singapore, based on the principles of Murabahah. Do your part in supporting, investment in halal funds and Insya’Allah,
    when the market players see the demand, they will work their way to introduce more shariah compliant instruments for the people of Singapore. Amin… Insya’Allah…

  19. hojjatullah Says:

    Salam brother Helmi

    I am a lecturer in Iran, studying about Takaful in Singapore.
    Would you pls introduce some experts there who have professional information both about the Takaful model and Experience as well as its Sharia’h compliancy issues? I thing I must travel to Singapore very soon. It will be kind of you if give me some information.

    Best regards

  20. Helmi Hakim Says:

    Waalaikumsalam Hojjatullah.

    Alhamdulillah. The web makes the world, very small indeed. 🙂

    As I have not meet you before, I will appreciate you to send me an email, introducing yourself, and add me if you have a Linkedin profile, before introducing you, industry practitioners, well versed in Takaful model and experience as well as its Shariah compliancy issues in Singapore. My email is

    It will be intriguing, because in the world, there are only 3 countries which have a full fledged Islamic financial system, that is your country, Iran, Sudan and Pakistan.

    Appreciate your email. Wassalam. 🙂

  21. Haikal Says:

    Salam Helmi,

    I just came across this website while scouring the net for more information about investing and halal investing in particular. I’m young and I think I should equip myself with more information about the financial world. I was wondering if you can do have any advice on where I can start looking. You may email me to take this conversation further.

  22. Din Says:

    Salam Helmi

    I did a bit of researching to know more about the implications should a Muslim were to buy insurance for themselves. Being a new financial consultant, I want to do a good service to all of my potential clients and provide them with the necessary knowledge so that they can make wise decisions on the various financial products that are available in the market. From what I had gather, I understand that purchasing a term plan is not permissible under the fatwa decreed by MUIS. However, most plans do not come with death benefit, unless of course if a rider is being attached to it.

    Furthermore, you had mentioned in your earlier comments saying that only NTUC income is the only co-operative insurer in Singapore. Does that mean that if a client were to purchase from other insurance companies, it will not be ok?

    I would like to seek your understanding in this issue because I’ve been feeling uneasy ever since I joined the industry a few weeks back. After all, I want to assist Malay/Muslim families to the best of my abilities without feeling a sense of guilt once I had close the sale. My manager (who isn’t a Muslim) is unable to comprehend the situation I am facing with right now.

    I would appreciate it if you can email me soon so that I can do my job properly.


  23. Helmi Hakim Says:

    Salam Din,

    Welcome to the financial planning industry. 🙂

    I understand your concern.

    You will like to help our Muslim community with necessary knowledge so that they can make wise decisions on the various financial products that are available in the market.

    At the same time, you will like to do it the shariah compliant way.

    My perspective on term insurance from cooperative insurer, the hukum is harus.

    Harus means it is permissible, but you don’t get pahala (good deeds) or dosa (bad deeds).

    You do it because of necessity.

    NTUC Income cooperative has a shariah compliant fund, called Takaful Fund.

    In addition to investment objective, if clients will like to do it, as a form of wealth protection, we do have an aqad contract, to mention specifically, in writing, that any difference, between sum assured and premiums paid, are deemed as a donation from the insurer, thus remedying the effect of maysir and gharar.

    My perspective on getting this plan either for wealth accumulation or wealth protection, it is Halal. Halal means it is permissible and if you do it, you get pahala (good deeds).

    If you will like to discuss further, I will be very happy to meet you. I send you an email, and do revert for an appointment. Insya’Allah. 🙂

  24. Ruhaya Says:

    Salam Bro Helmi. I’ve just chance upon your blog. My 1st 2 daughters (10 & 8) are covered by takaful since they were babies. My youngest daughter isn’t. Wondering if there are any other syariah compliant insurance besides Takaful? I’m also covered by takaful but shld I get other halal insurance to cover hospitalisation? Thank you.

  25. Helmi Hakim Says:

    Waalaikumsalam Sis Ruhaya,

    I just emailed you. Let us meet for a financial review and I shall advice you further.

    You can whatsapp/SMS me at 96520134. Thank you! 🙂

  26. lina Says:

    Dear Helmi, my family are covered under several policies, some of which are ntuc and some are not. All these were bought many years back when were ignorant unaware on the muslim law. Now that we are aware of halal insurances, we want to put things right, do we have to let go of the non halal insurances or is they any way to work around it. Can u pls advise? Appreciate much.

  27. Helmi Hakim Says:

    Dear Lina,

    What is done is done. I do not recommend my clients to terminate their existing insurance plans, especially if the plans have not reached the breakeven point.

    What I do encourage, is moving forward, do support the development of Islamic Finance in Singapore by taking up plans that are shariah compliant only.

    You can whatsapp/SMS me at 96520134 for an appointment to discuss further. Insya’Allah. 🙂

  28. Rashid Says:

    Alhamdulillah. I am glad and thankful that there are people like you that provide clarifications on such issues. Keep it up, bro!

  29. Dian Says:

    Hi Helmi, I have just started entering the working world and am planning to subsribe to an insurance plan. I am interested in cooperative insurance but as I was looking it up on the NTUC website, i noticed there were quite a number of plans available and have no idea which one is best for me. I would like to seek your advice wrt insurance plan that matches me and at the same time complying to the syariah requirements.

  30. Helmi Hakim Says:

    Hi Dian,
    Welcome to the working world! 🙂

    We need to meet up so that, I can explain in greater detail on riba, maysir and gharar in Singapore’s context.

    AND recommend the best plan most suitable for you, based on your financial objectives, investment time horizon and risk profile.

    You can SMS/Whatsapp me at 96520134 to schedule an appointment.

    Thank you! 🙂

    Helmi Hakim

  31. Sakinah Says:


    I chanced upon this website when I searched for Takaful insurance in Singapore. I’m a student in MSc in Islamic finance currently, and I would like to know more about Takaful plans available in Singapore, as I’m not so sure about the availability of Takaful plans in Singapore.

    I’ve read all your replies and correct me if I’m wrong, is it correct to say that currently we don’t have specific takaful plans for let’s say Travel/Car/Home? Like how conventional insurance provides? Means, if for myself, I’m still a student and I don’t have the capacity to invest, but I would like to buy a Takaful/Syariah compliant insurance if I go travelling, for this you would suggest the cooperative insurance right?

    Please advice as I’m still learning and would like to serve to my best of ability upon graduation insyaAllah. Appreciate your help.

    Thank you.

  32. Helmi Hakim Says:

    Waalaikumsalam Sakinah,

    You are right. We don’t have specific takaful plans for Travel/Car/Home protection plans in Singapore.

    I suggest my clients to get them from a cooperative insurer in Singapore.

    Jazakallah Khayran! 🙂

  33. Sakinah Says:


    Thank you so much for your prompt reply! Really appreciate it.

    I was wondering if you could suggest of any articles on Takaful in Singapore for my assignment. As I’m still new in this industry, I’m not sure where to start searching for the right sources.

    Thank you for your kind assistance!
    Jazaakumullah kheyral jazaa’.

  34. Helmi Hakim Says:


    I’m not aware of any articles on Takaful in Singapore.

    Below urls are my latest contribution for our Muslim community in Singapore.

    Hope it helps. Insya’Allah 🙂

  35. Siti Says:

    Salam brother. I googled on endowment plans and i got here. I am extremely interested in growing my wealth and I just got hooked up with a certain bank in SG; that gives x% of interest every year. My insides feels wrong but I signed it anyway. But couldnt stop thinking and frowning about it because i know riba is haram and the likes. Could you please whatsapp me so i can explain more? Need an expert in this field! Mobile is 81396642- whatsapp me anytime!

  36. Helmi Hakim Says:

    Waalaikumsalam Sis,

    I have send you a whatsapp msg to schedule an appointment. My mobile number is 96520134.

    We shall meet soonest to discuss further. Insya’Allah. 🙂

    Helmi Hakim

  37. Ika Says:

    Hi Helmi. I chanced upon your page while googling on the halal/haram of insurance plans.

    I do not know anything about Takaful until I read ur page. My husband and our two kids are all insured under the medical and the savings insurance.

    The medical insurance relates to payment of hosp bills. Because I’ve always been concerned if I were to be hospitalised one day the bills I may not be able to pay the exorbitant hosp bills. Basically I am fully covered, medically.

    As for the savings plans, basically we pay premium per month and after xx no of years, we stop paying but the money will continue to garner interest until xx no of years where the policy matures. I was ignorant at the time of signing but now seema that it is clear that this savings plan involves riba.

    My qn is, is my medical insurance mentioned above considered haram? How is it haram if it was taken up with the intention of protecting my family from debts (hosp bills)?

    2ndly, how does Takaful works if it doesnt involve interest? Example if we put in $10 per month means after one year we will get back exact $120? Then whats the point of ‘saving’ in that sense? Kindly enlighten me. Thank you!

  38. Helmi Hakim Says:

    Hi Ika,

    I am in the perspective that getting a medical insurance from a cooperative insurer, the hukum is Harus.

    You get it on the basis of necessity and concerned if you were to be hospitalised one day the bills you may not be able to pay the exorbitant hospital bills.

    On that basis, it is harus (permissible).

    Pertaining to wealth accumulation the shariah compliant way, you basically need to know where your money is invested in.
    The underlying asset needs to be Halal.

    In addition to that, in Islam, interest (riba) is prohibited.
    However, profit is allowed.
    To make money the Halal way, you make money via profit through capital apprecation of shariah compliant funds, which consist of shariah compliant equities.

    There are different shariah compliant screening methodologies like Dow Jones, MSCI, AAOIFI, Securities Commission Malaysia and many more.

    There is a lot of things I can explain.
    If you will like to learn more, whatsapp/SMS me at 96520134 to schedule a free consultation.
    Insya’Allah 🙂

  39. Hamzah Says:

    As Salam Helmi.
    Thank you for having this section and sharing experience and knowledge. May Rahmat be upon you.
    I am already very long in working industry.
    I have life insurance bought very long time ago with ICS and now with another insurance company which take over ICS.
    Not very sure this is under cooperate type insurance or not after reading through your articles. They issue bonuses annually.
    Shall I surrender the insurance. How to cleanse it?
    Besides I have invest in some funds through bank. Is it Haram? How to cleanse it if so.
    As salam

  40. Helmi Hakim Says:

    Waalaikumsalam Hamzah,

    I suggest you to schedule a free consultation with me to discuss further.
    Bring along your policy documents.

    You can schedule your consultation anytime at
    OR you can whatsapp me directly at 96520134.

    Insya’Allah. 🙂

    Helmi Hakim

  41. Nurul Says:

    Hi Helmi,
    Can i check with you how is the savings plans from a cooperative halal when upon maturity you will also earn money from your savings plan?

  42. Helmi Hakim Says:

    Hi Nurul,
    Savings plans like endowment from cooperative, I deemed that as Harus.

    Investment plan, investing in Takaful fund, I deemed that as Halal.
    It is Halal because the underlying fund is a shariah compliant equity fund. We follow the Dow Jones shariah compliant screening methodology in selection of the shariah compliant stocks.

    As a financial planner, I will help you with fact finding which includes risk profile analysis prior to recommending you financial instruments most suitable for you.

    If you like to understand better, on how you can plan your finance the shariah compliant way in Singapore, do schedule your FREE session with me at
    Or whatsapp me at 96520134

    Looking forward to meet you. Insya’Allah. 🙂

  43. Nor Says:

    Salam Helmi.
    I would like to know if taking a loan from our Endowment plan permissible as it comes with compounding interest. I also understand that the company will give bonuses. Are we allowed to take it? Thank you.

  44. Helmi Hakim Says:

    Waalaikumsalam Nor,

    I am holding a position that taking a loan from your own endowment plan is not permissible in terms of Islamic Finance perspective.
    If you have to borrow money, pay it back asap to avoid accumulating interest.

    In pertinence to endowment plan as part of your portfolio, I hold the position that the hukum is Harus to get endowment plans from a cooperative insurer in Singapore.
    You can take the bonus from these plans.

    If you have a long term financial objective and able to take calculated risk, I suggest you include investment in shariah compliant funds. The return is Halal.

    Do whatsapp me at 96520134 should you have more enquiries. Insya’Allah! 🙂

  45. Mohammed Says:

    Assalammualaikum Helmi…I came across your website while searching for answers if endowment plans are halal. I have 3 plans with (company name deleted) currently under the (name of plan deleted) policies which pays me a certain premium after 15 and 25 years. Now how do I know if these plans are investing in halal stocks and investments?

  46. Helmi Hakim Says:

    Waalaikumsalam Mohammad.
    Only investment linked plan investing directly into specialised shariah compliant equity fund, invest directly in Halal stocks and investments.

    If you like to understand better, on how you can plan your finance the shariah compliant way in Singapore, do schedule your FREE session with me at
    Or whatsapp me at 96520134

    Looking forward to meet you. Insya’Allah. 🙂

  47. Kams Says:

    Salam. I would like to ask if there’s any syariah compliant investment with local banks currently with good return?

    Thank you

  48. Helmi Hakim Says:

    Salam Kams.

    There is no shariah compliant investment with our local banks currently.

    What is available is Al Wadiah Yad Dhamanah savings account.
    It gives you Hibah instead of interest.

    If you like to understand better in greater detail on how shariah compliant savings account is different than conventional ones, do schedule your FREE session with me at
    Or whatsapp me at 96520134

    Looking forward to meet you. Insya’Allah.

  49. Faisal Says:

    Salam Bro Helmi,

    I came across your website while searching for an answer whether I should cancel my current Insurance policy which I had already committed almost 7years and I believe my insurance plans is not following any of the shariah requirements.

    I am very concern since I have zero knowledge about this subject any chance that I can meet you in person? Will there be any service charge for your service?


  50. Helmi Hakim Says:

    Waalaikumsalam Faisal,

    I will not recommend you to terminate your insurance plans.
    This is because early termination will result in you losing money.
    What I do recommend is that whatever additional plans that you will like to undertake, do ensure that it is shariah compliant.

    No riba. No maysir. No gharar.

    You can schedule a free consultation with me to discuss further. Whatsapp me at 96520134. Insya’Allah! 🙂

  51. Shaifudin Says:

    As-salaamu ‘alaykum Encik Helmi,

    I’m am married and still looking for a home. Seems like i have no choice but to take HDB or bank loans with interests. I believed many Muslims in Singapore needs advise on this issue.

    Please kindly advise, is there any solution in Singapore that we can have to help us buy a house without indulging with Ribaa’?

    Jazakallahu khayr.

  52. Helmi Hakim Says:

    Waalaikumsalam Shaifudin,

    Right now, there is no shariah compliant financing facilities in Singapore
    like Murabahah, Musharakah Mutanaqisah or Ijarah Wa Iqtina.

    You can refer here.

    Thus it is darurat for us to take loans with interest in Singapore to buy home which is a necessity.


    Helmi Hakim

  53. Wan Says:

    Salam bro,
    To my knowledge, taking up insurance is haram as it involves interest, gambling and uncertainty.

    There is only one cooperative insurance company: NTUC income in Singapore. There is no Islamic regulations in Singapore unfortunately. Most take up Medical insurance to cover times of uncertainty.

    Is it halal to take up Medical insurance then when it already deals with uncertainty?

  54. Helmi Hakim Says:

    Waalaikumsalam. Personally, I see getting Medical insurance plan from any insurance company in Singapore is Harus (Neutral). Anyway, medical insurance plan dont have cash value.

    We are more concerned with plans that has cash value. Question in point, where do our money get invested in?
    Are the underlying assets Halal or Haram in accordance to the shariah compliant screening methodology adopted?

    Who are the Islamic Finance scholars who endorse and give assurance?
    Thank you.

  55. Rabia Says:


    I’ve recently graduated and is looking for ways to grow my money.

    I’ve heard of endowment plans, and while the returns seem very attractive, I understand it is based on interest, which is riba.

    I’ve also read up on RSS plans, which is also an investment However, I’ve noted that the ETFs counters provided may not be shariah-compliant.

    Could you kindly advice on platforms/plans available to help grow one’s money while adhering to the shariah? Thank you. 🙂

  56. Helmi Hakim Says:

    Waalaikumsalam Rabia
    Congratulations for your graduation.
    And welcome to the working world. 🙂

    In light of Covid19 situation, if you want to plan your finance the shariah compliant way in Singapore, do schedule your FREE session via Zoom with me at
    Or whatsapp me at 96520134

    I will give you a free gift specially for graduates like yourself to get a good headstart. Insya’Allah. 🙂

    Helmi Hakim

  57. Sarina Says:

    Hi, please tell me more about retirement plan. Is takaful investment with coverage suitable for retirement?

  58. Helmi Hakim Says:

    Thank you Sarina for your enquiry.

    Sure. I have awesome retirement planning strategies catered for our fellow Muslim community in Singapore.

    If you like to learn more, do schedule your FREE session via Zoom with me at
    Or whatsapp me at 96520134


    Helmi Hakim


  1. […] Is there such thing as Halal Insurance In … – Hidayah Says: 14. July 2012 at 11:50 pm. Indirectly it means dat life insurance is haram. Correct? It’s like putting some value to your life. […]

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