RetireJapan

I'll be more blunt, OkiBurn is getting absolutely hosed. Only the agent selling that policy is laughing.

Betting on achieving 7% growth is a fantasy. Over time, stocks on average have had real returns of 5%, and we're now coming off one of the longest mostly bull runs to date with man markets still looking rather frothy. I think we'd count ourselves very lucky if stocks managed to deliver average real growth of 5%.

The moral of the story, as always: don't mix insurance and investing. The only person that benefits from your 'investment' is the insurance company.

I took the loss a few months ago and closed this policy. I instead took a cheap local policy with just the basic life insurance and invest the difference on my own.

Even though I lost about 6,000 dollars on this, in the long run I would have lost even more.

OkiBum wrote: ↑Fri Aug 14, 2020 12:48 am I took the loss a few months ago and closed this policy. I instead took a cheap local policy with just the basic life insurance and invest the difference on my own.

Even though I lost about 6,000 dollars on this, in the long run I would have lost even more.

I am glad you saw the light! I think you will be better off with this approach.

I myself am still hunting down term-insurance.

What is your monthly rate / Coverage amount?

Kanto wrote: ↑Fri Aug 14, 2020 6:32 am

OkiBum wrote: ↑Fri Aug 14, 2020 12:48 am I took the loss a few months ago and closed this policy. I instead took a cheap local policy with just the basic life insurance and invest the difference on my own.

Even though I lost about 6,000 dollars on this, in the long run I would have lost even more.

I am glad you saw the light! I think you will be better off with this approach.

I myself am still hunting down term-insurance.

What is your monthly rate / Coverage amount?

Around 4,000 per month for a coverage of 2500万

OkiBum wrote: ↑Tue Aug 18, 2020 4:05 am

Kanto wrote: ↑Fri Aug 14, 2020 6:32 am

OkiBum wrote: ↑Fri Aug 14, 2020 12:48 am I took the loss a few months ago and closed this policy. I instead took a cheap local policy with just the basic life insurance and invest the difference on my own.

Even though I lost about 6,000 dollars on this, in the long run I would have lost even more.

I am glad you saw the light! I think you will be better off with this approach.

I myself am still hunting down term-insurance.

What is your monthly rate / Coverage amount?

Around 4,000 per month for a coverage of 2500万

That is a great price. Can you share your provider?

Did you get a quote online?

Kanto wrote: ↑Tue Aug 18, 2020 4:51 am

OkiBum wrote: ↑Tue Aug 18, 2020 4:05 am

Kanto wrote: ↑Fri Aug 14, 2020 6:32 am

I am glad you saw the light! I think you will be better off with this approach.

I myself am still hunting down term-insurance.

What is your monthly rate / Coverage amount?

Around 4,000 per month for a coverage of 2500万

That is a great price. Can you share your provider?

Did you get a quote online?

Provider is Zurich. I got it from the Hoken no Madoguchi which is there in most areas I believe. Another reason my fees might be lower is because I am not a smoker and I took coverage only till the age of 65. (Currently early 30's)
I hope to financially independent by then and have enough to leave for my wife if anything were to happen to be beyond 65.

Zurich is solid - insurance looks cheap because you're so young, which means you'll be paying for 30+ years.

Now, I don't know your current situation - children? Health situation? Spouse working? current savings? etc etc.
But just my $0.02, you shouldn't have simply gotten insurance until you're 65 unless your family would actually -need- it for the next 30+ years. You should only get insurance for how long your family would be dependent on your income.

If you don't have kids and your wife is about the same age, and something happened to you now, you don't need much insurance, as she'd have decades ahead of her that she could work.

If you have small kids, you may want more insurance now, until they've left the nest, at which point you can significantly reduce coverage, if not drop it completely.

I'm a bit (well, a lot) older than you and have two small kids. I had more insurance when the kids were smaller, and I've staggered them, so they end at various times, and the last plan drops out just as my youngest would be leaving university.

You're in your early 30s and already thinking ahead; you should be self-insured by the time you're 50-something, which means you probably won't need to be paying for insurance for 15+ years.

I understand what you are saying, but my policy is more for my partner's peace of mind and she was more comfortable with a this coverage so I decided to go with it.

On the other hand, the coverage we took for my wife is much much lower. I was comfortable with this and as you mentioned have many years to continue to work and build wealth.

It all boils down to the individual's risk tolerance I suppose..