RetireJapan

Deep Blue wrote: ↑Sat Jun 01, 2024 2:49 am

Tsumitate Wrestler wrote: ↑Sat Jun 01, 2024 1:29 am]

Someone with kids, or a non-working spouse should DEFINITELY have insurance (just not whole life).

I have both a non working spouse and children, but feel no take to take out insurance - we just have car insurance and more recently bicycle insurance.

If you passed away tomorrow could your wife juggle all the present and future expenses?

Rent/mortgage?
Childcare, jukku, university?
Investing for her retirement?

If not the 3000-4000 yen a month for term insurance is a very small price to pay.

Yes, she would be financially secure if I passed away tomorrow. Insurance is a waste of money in some circumstances, very happy to have invested the premiums we would have wasted on house, travel, life insurance over the years and built up assets we control.

Deep Blue wrote: ↑Sat Jun 01, 2024 3:50 am Yes, she would be financially secure if I passed away tomorrow. Insurance is a waste of money in some circumstances, very happy to have invested the premiums we would have wasted on house, travel, life insurance over the years and built up assets we control.

I'm glad you're so financially secure! Very atypically.

The beauty of term insurance is you cancel it when you don't need it. There no investment/yield component. We planned to cancel once we got around 一億。

Term insurance is so cheap as chips too compared to wholelife.

I had my wife cancel her term life insurance policy recently. Got it when our first kid was born, one for me and one for her. I don’t think she actually needs me to keep paying for my policy anymore either, but she’s happier knowing a wad of cash will be available should something happen to me, besides what we already have. As for me, I don’t have concerns about managing financially in the worst case, and talked her into quitting it. Saves the associated pesky year end paper work, and periodic communications from the insurance company too.

It was a good point earlier in this topic about insurance being paid out at an early stage in that unfortunate circumstance. That’s definitely something to consider.

A lot of Japanese people have a deep love of insurance as they get indoctrinated by it. Term life insurance is bearable, for providing family members with the “peace of mind” that insurance companies are selling.

But I personally would avoid any savings style life insurance products. I see that is just delegating your investments to the life insurance company along with your actual life risk. Only good for people who absolutely don’t won’t to take any responsibility for their own future.
学資保険 products are apparently not very profitable for life insurance companies but they try to use these as products to get a foot in your door and then come try to have you give them more of your money for other products, when you could just invest in NISA or a taxable account as effectively by yourself.

Thanks input and insight all - think we’ll go for term insurance for ¥1,200 a month with ¥1000万 payout to cover imminent costs - combined with a strictly crafted Will with an assigned trustee to keep appointed guardians under control with the finances for the little ones.

I recently had the misfortune to have to claim my wife's life insurance after she passed away, and I for one am extremely glad that we had decided to take out insurance when we became parents. Everyone's circumstances are different, but the payout has made the difference between being financially comfortable while seeing our children into adulthood and having no option but to economize and continue to put money aside (although I will still do that if course).

The insurance was through Lifenet Seimei and the process of claiming it was very simple. I sent off the required documents on a Monday and the money was in my bank account by Thursday or the same week.

Those with children who are enrolled in the Japanese pension system should also be aware of Izoku Nenkin, which acts as a form of life insurance. The payments depend to some extent on how much you have paid into the system, for how long and whether you are in kosei nenkin or kokumin nenkin, but the amount you can get is not insignificant. In my case I and my children will receive approximately 150,000 in total per month until they graduate from high school. My wife was in kosei nenkin when she died, which means we get more than we would have if she had still been my dependent.

jamesk45 wrote: ↑Wed Jun 26, 2024 4:18 am I recently had the misfortune to have to claim my wife's life insurance after she passed away, and I for one am extremely glad that we had decided to take out insurance when we became parents. Everyone's circumstances are different, but the payout has made the difference between being financially comfortable while seeing our children into adulthood and having no option but to economize and continue to put money aside (although I will still do that if course).

The insurance was through Lifenet Seimei and the process of claiming it was very simple. I sent off the required documents on a Monday and the money was in my bank account by Thursday or the same week.

Those with children who are enrolled in the Japanese pension system should also be aware of Izoku Nenkin, which acts as a form of life insurance. The payments depend to some extent on how much you have paid into the system, for how long and whether you are in kosei nenkin or kokumin nenkin, but the amount you can get is not insignificant. In my case I and my children will receive approximately 150,000 in total per month until they graduate from high school. My wife was in kosei nenkin when she died, which means we get more than we would have if she had still been my dependent.

I just want to come here to offer my condolences and to thank you for taking the time to offer advice and help to others at such a difficult time. Thank you.