A Question of this nature was dealt with by Dr. Main K. Al-Qudah, who said:
“Upon the consensus of the contemporary Fiqh councils in the Muslim World and abroad, any kind of commercial insurance is prohibited unless there is a dire need for it.
For instance, having health insurance for Muslims who reside in the US is allowed because of the very high expense of medical treatment. Liability insurance for vehicles is allowed too because it is required by law, etc.
As for your question regarding disability insurance, you may have it if it is included in the job offer (as a compensation or allowance for instance) of the company who is interested in hiring you. Otherwise, and if you are the one who is going to apply for it privately, I highly recommend you not to get involved in such a deal, especially if you have health insurance and pension plan.”
