Considerations for New Insurance Policy?

[expat2011]

Hello there Retire Japan. I'm looking for advice and opinions regarding life insurance, disability insurance, 3 Big Sicknesses insurance and Cancer Insurance.

Basically, as you can tell from my other post, I've already started researching life insurance and I thought I was nearly ready to go get a policy, when I realized that maybe my monthly premium will be cheaper if I have other insurance together with the life insurance, rather than purchasing the policies separately. I don't want to waste too much time researching each type and getting analysis paralysis, but also obviously I 1) want to understand the policies and 2) get the maximum benefits for my monthly premium(s).

At first I was wondering why cancer insurance and the "3 big sicknesses" insurance exist if we already have health insurance. I guess these insurances cover more advanced treatments or hospital stays that national health insurance does not cover (or does not cover completely). Also, it sounds like 三大疾病 is cancer, heart disease and stroke, so if I can get this insurance, I guess I don't need a separate cancer insurance. Is anyone able to comment on this or add their understanding/experience?

Regarding disability insurance, I guess it would be wise to add this as well, as long as it doesn't cause the monthly premium to go up so much that I would have been better off investing the difference.

For reference, I am married with one child, and my wife and I both work and both make pretty much the same amount of money.

I know most the insurance guy is of course going to try to oversell me, that's what they do. But I also don't want to be under-insured. I also don't want to buy my policies in pieces and have higher premiums than necessary. If anyone is able to offer tips, their experiences, or other things to consider regarding disability and sickness insurance, I would appreciate it.

[Tokyo]

I cannot offer you much advice on insurance, however, we did take out a couple of policies back when the kids were costing a fortune in education and serious illness, etc. could have derailed their futures. If you are in education and a member of Kyosai, some of the policies returned rather large refunds (maybe 30~40%) at the end of the year covered - I assume because we never had the misfortune to make any claims. Maybe all policies work like this in Japan(?), but that’s all I have experienced.

[Established]

I cannot offer you much advice on insurance, however, we did take out a couple of policies back when the kids were costing a fortune in education and serious illness, etc. could have derailed their futures. If you are in education and a member of Kyosai, some of the policies returned rather large refunds (maybe 30~40%) at the end of the year covered - I assume because we never had the misfortune to make any claims. Maybe all policies work like this in Japan(?), but that’s all I have experienced.

My standard advice here is Term life insurance.

I suggest you and your wife hold policies until your children are finished university.

If your wife does not work, you should hold it until retirement.

Stay far far away from whole-life insurance.

[expat2011]

Stay far far away from whole-life insurance.

Whole-life insurance is when I pay premiums from now until age 60, but the life insurance is then available until I die, right? Why do you not recommend it? Maybe the premiums are so high that I would be better off just investing the money? I'm trying to choose now between term-life and whole-life.

[Established]

Stay far far away from whole-life insurance.

Whole-life insurance is when I pay premiums from now until age 60, but the life insurance is then available until I die, right? Why do you not recommend it? Maybe the premiums are so high that I would be better off just investing the money? I'm trying to choose now between term-life and whole-life.

Maybe the premiums are so high that I would be better off just investing the money?

Bingo, Whole-life is a really bad deal. You are better off investing the money.

[fools_gold]

I cannot offer you much advice on insurance, however, we did take out a couple of policies back when the kids were costing a fortune in education and serious illness, etc. could have derailed their futures. If you are in education and a member of Kyosai, some of the policies returned rather large refunds (maybe 30~40%) at the end of the year covered - I assume because we never had the misfortune to make any claims. Maybe all policies work like this in Japan(?), but that’s all I have experienced.

I think it's just non-profit mutual aid groups that do this. Basically they just give back to the members anything that is left over after they've paid out for claims.

There's also Kenmin kyosai, which are mutual aid groups anyone can join. Each prefecture has one. I'm not sure if they have the kind of policy the OP is looking for though...

[AreTheyTheLemmings?]

At first I was wondering why cancer insurance and the "3 big sicknesses" insurance exist if we already have health insurance. I guess these insurances cover more advanced treatments or hospital stays that national health insurance does not cover (or does not cover completely). Also, it sounds like 三大疾病 is cancer, heart disease and stroke, so if I can get this insurance, I guess I don't need a separate cancer insurance. Is anyone able to comment on this or add their understanding/experience?

If you got cancer, national health insurance would cover the basics of treatment, but no more. You'll not be left untreated or anything. However, having recently been through this with a close family member, I can tell you that it is a hard, hard time and any small thing that makes it even a little easier is a godsend. These are the things that national health insurance does not cover, but 三大疾病 policies and their ilk generally do cover.

When, for instance, you're reeling from the effects of the treatment and you're just not well enough to work, the payout from your insurance policy will help soften the loss of income. When you don't want all the other patients in the multi-bed room knowing every last detail of your predicament and hearing your family drama play out, that insurance will cover (most of) the surcharge for your private room. When you've got to get to the hospital yourself because there's no-one to drive you, many 三大疾病 policies cover some taxi expenses. Those kinds of things...

Anything that makes such a gruelling time just a little bit less burdensome will, at the time you need it, feel like a bargain for the premiums you paid.

[expat2011]

Thanks everyone for the tips so far. AreTheyTheLemmings, I'm sorry to hear about your recent experience.

Sounds like I'll opt for term life insurance and the 3 Diseases insurance.

Does anyone have any experience shopping for Disability insurance? My current company offers it, but I am planning on getting a new job anyway. Maybe it would be better to get Disability insurance from a 3rd party? What happens if I become disabled while coincidentally between jobs? Would I get no money, or is the insurance based on my salary at the time the insurance contract begins?

My apologies for all of the questions. I do also intend to speak directly to the insurance broker as well, so don't worry, I'm not relying solely on internet advice- just interested in everyone's experiences.

[AreTheyTheLemmings?]

Thanks everyone for the tips so far. AreTheyTheLemmings, I'm sorry to hear about your recent experience.

No problem. Judging from others' experiences, we got off pretty lightly.

Does anyone have any experience shopping for Disability insurance?

In my experience, those 保険市場 and ほけんの窓口 places are pretty good. They're not affiliated with any one insurance provider, so they can pick and choose the products that suit your needs best. Take it slow, allow for plenty of time spread over several visits to their shops to work through all the options and find out what's best for you (all those "What if?" questions need answering), and you should arrive at the right policy (or policies).

Good luck.

[captainspoke]

... Disability insurance? My current company offers it, ...

Are you sure it's your company that's offering it, and not the insurer the company uses? (eg, a kyosai-like system) If it's the latter, then it may be possible to continue the coverage for some period of time after you leave.