RetireJapan

if I see out the full term, I get back basically all I put in

That sounds like a savings type of insurance plan.

Personally I dislike "insurance" products that are really more about handing over your money to an insurance company so they can make good use of it, instead of reaping the benefits of our own money ourselves. Many Japanese financial advisors tend to offer such advice too, although there are opposing views.

I am subscribed to only pure insurance products, in which I pay a throw-away premium and hope that I (or my wife) never have to make a claim on the policy.

I think the typical Japanese love of these savings-type insurance products is also somewhat historical.

When we had our first child, my partner's relatives (located in the countryside, which might have something to do with it too) were adamant that we should take out a "gakushi hoken" policy, to ensure that our kid would be able to go to university no matter what happens to us.
The relatives told me that this "gakushi hoken" was sure to pay dividends too.
The thing is, their experience with these products was from like 30 years ago, when financial conditions in Japan were quite different, and these types of products didn't pay a relative pittance like they do these days.

Anyway, I grudgingly shopped around, and found that the Post Office product (which the relatives recommended to me) was a sure fire money loser. That's right, I'd get out less than what I would pay in. "Oh, that's the Post Office covering the possibility that you might die"...

At the time, I found other products that would actual pay a slight return. A Nissei product that was the most competitive of the lot, which would pay back about 20% more than what I paid in, if I paid into the plan quickly over the first 10 years - which sounds ok but you have to remember that this is money that I can't get my hands on until my kid is old enough to go to university, almost 2 decades later. Money that could have gone into global stock market exposure.

Fortunately by the time our second kid arrived, I had convinced my partner that we're better off just buying pure insurance to cover the possibility of us dying etc, and putting our savings away into proper investments.

The love of the Post Office and their horrendous insurance products is strong though...

I have one of these life insurance plus 'investment' things. Started it purely to get the tax deduction of 40,000 per year. I pay 10,000 per month. They are not a proper substitute for decent, low-cost investments. And Japanese financial planners do love them...

beanhead wrote: ↑Tue Feb 16, 2021 5:20 am And Japanese financial planners do love them...

Especially the ones that get a commission for selling life insurance

Indeed...sigh...
As someone else said, just consider it like a savings plan rather than an investment. A savings plan I have no access to for decades!

beanhead wrote: ↑Wed Feb 17, 2021 9:56 am Indeed...sigh...
As someone else said, just consider it like a savings plan rather than an investment. A savings plan I have no access to for decades!

Well, the positives are the tax savings and also the diversification. While the return is not comparable to investing, at least your principal should be safe and it could balance out an inconveniently times stock market crash.