RetireJapan Guides

[RetireJapan]

I am inclined to do a RetireJapan Guide to Mortgages next, unless a better idea comes along before the end of the month

[Tony]

I'd like to see something about insurance. I've just got married, and have yet to sign up for anything beyond 私学共済, and the sports insurance I get for being in a triathlon club. Thinking of starting a family, so I guess I'll need to look at getting life insurance soon, and there doesn't seem to be a whole lot out there in English in regards to life insurance in Japan.

[RetireJapan]

Insurance is probably going to be the fourth. I'd do it next, but it's a huge topic and actually scares me slightly

[TokyoWart]

The insurance industry in Japan dominates investment markets much more than in the US, but their products are generally terrible. Those attractice young ladies lined up around companies during the lunch hour are selling policies that cost much more than in the US (at least for life insurance) or are convoluted in way that make you overlook the poor returns offered for the wide variety of only-in-Japan insurance products you will see. An insurance industry can offer good products when it has financial investing expertise that allow it to invest your money at higher returns than are available to us as individual investors. That isn't true in Japan where most investment advisors have still not discovered the superiority of index funds and a fear of short-term volatility impedes investment in stocks. Japan is also the primary market for gimmick insurance (AFLAC's cancer insurance market is much much higher in Japan than in the US or EU). The best advice is to avoid products from the Japanese insurance industry.

[RetireJapan]

The insurance industry in Japan dominates investment markets much more than in the US, but their products are generally terrible. Those attractice young ladies lined up around companies during the lunch hour are selling policies that cost much more than in the US (at least for life insurance) or are convoluted in way that make you overlook the poor returns offered for the wide variety of only-in-Japan insurance products you will see. An insurance industry can offer good products when it has financial investing expertise that allow it to invest your money at higher returns than are available to us as individual investors. That isn't true in Japan where most investment advisors have still not discovered the superiority of index funds and a fear of short-term volatility impedes investment in stocks. Japan is also the primary market for gimmick insurance (AFLAC's cancer insurance market is much much higher in Japan than in the US or EU). The best advice is to avoid products from the Japanese insurance industry.

A good point

But getting (too much) insurance is par for the course here, and most people are going to end up with some. Given that, do you not think a guide to what the various products are are which ones to avoid might be useful?

I think everyone should have car insurance that covers third parties, for example, and fire/earthquake insurance is often compulsory if you have a mortgage. People with families might sleep better with term life, etc.

[TokyoWart]

Sure, a post explaining the landscape would be helpful just don't encourage too many purchases . I do agree that home insurance, car insurance, etc are necessary and term life insurance if someone is relying on your income. Unfortunately, even that term life insurance seems to be quite expensive here compared at least to the US.