RetireJapan

Hi everyone,
I am about to pay my annual premium for my term life policy (foreign insurance company) which was bought when I was based outside of Japan. However they have informed me that should I become a PR in the future the overseas policy can no longer be renewed so I would need to switch to a domestic policy bought in Japan. My question is are there any differences for the beneficiary (my Japanese wife) from an income tax point of view, both in terms of inheritance tax and any tax benefits for a term life insurance payout which is bought overseas versus a domestically bought policy here in Japan? Thank you.

It’ll probably be much easier to make a claim and get the cash relatively quickly.

And you get a modest tax deduction (¥40,000 a year) for a Japanese policy.

Don’t know for sure about inheritance tax but I think it would be tax free to your spouse.

Thanks Ricardo, I appreciate your input.