You may be aware that most credit cards offer a sort of insurance against sudden incapacitation due to serious illness or death or loss of job. If one subscribes to it, then in the event of any such incapacitation the bank will write off all of the monies owed by the person. Is this jayez?
Bismillahi Ta’ala
“Credit Protection Plans” or other such insurances are additional products provided by the company extending the credit. These are purely conventional insurance plans and are haram and impermissible.
The same will apply for other Health-related insurance policies for credit protection provided by similar banks and credit unions.
If, in a certain bank, such plan(s) is provided complementary from the side of the bank or organization as an incentive to use their services, then that would be permissible.
And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi