Concern of Ribit when Taking Insurance

Heter Iska

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Question

Taking insurance in ten installments with interest?

Answer

If the payment is to the credit company, it is forbidden. If it is to the insurance company and all payments are made during the insurance period, it is permitted, because ribit is specifically forbidden in transactions where the payment is immediate. However, in rental, where the payment is at the end, there is no ribit. Insurance can be compared to rental, and it is permitted only within the insurance period, but if it is before or after, it is forbidden.

Source

Shulchan Aruch, Yoreh De'ah, Siman 176

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