Looking for a nice life insurance

[enddayshappy]

41 y/o holding a permanent residence.
Married, with a 5 y/o daughter.

Wife is professional, full time worker so she can still provide if I die.

However I want to leave some money behind, hopefully a 30 million life insurance if possible.

I already checked Rakuten and MetLife, they’re pretty straightforward but I’m a bit concerned about their ‘contract expiration’: it means if I’m over 80 and I haven’t died, no insurance nor reimbursement?

Thanks in advance

 

[phillev]

@enddayshappy It sounds like you might be looking for whole life insurance. However, if I may, I would like to offer an alternative. Whole life insurance is generally 10 times as expensive as term life insurance. Now, checking around a few insurance providers like SBI or AXA direct, I can see 10 year term life insurance for 30 million yen will cost just over ¥6,000 per month. During that time, you could endeavor to save up 30 million in investments or savings.

So, let’s say that today you have zero savings and a 30m yen 10 year term life insurance. Then, in 10 years you have 15m yen in investments and you only need to take out a 15m yen 10 year term insurance policy. In 20 years you have 30m saved up and you no longer need insurance.

It’s one alternative to consider.

The key word to search for is 定期生命保険.

 

[sayno2circ]

@phillev that was helpful, thank you.

 

[blueskye30]

@enddayshappy Normally you insure yourself against a risk. That risk would have a term and a value. Sometimes the value would also decrease the closer you get to term.

If you want to insure yourself against death, in perpetuity, insurances are usually not good products. You're better investing instead. These "whole life" insurances usually cost much more than simple investment funds.

So, as other posters have done already, if you go for an insurance product I would recommend a term insurance for a specific set of risks, either for a fixed amount to term or for a decreasing amount (i.e. reaches 0 at term, the payout often being a fixed amount multiplied by the number of months until the end of the contract).

 

[ccharis]

@enddayshappy

However I want to leave some money behind, hopefully a 30 million life insurance if possible.

Hmm. I think the proper way to do this is by having a financial plan that includes savings, investments, and a retirement plan such that you'll have 30+ million in assets to pass on.

I.e, let's say you want to retire when you're 65, and project life expectancy until 85. Then you'll want a savings/investment plan to build enough wealth in your working years (by the time you're 65) to cover 15 years of retirement and still have enough assets for inheritance purposes.

Then on top of that, you can layer in insurance to provide protection in case you die or become critically disabled early -- e.g., in your 50s or early 60s -- before you can complete your financial plan.

So really it doesn't matter if the insurance "expires" in your 80s, because by then you're well past your financial planning horizon and have enough assets to pass on. Insurance isn't there to provide an "inheritance" at old age.

Some other posters have mentioned whole life insurance. It's not a great deal but it's something you can consider. You're better off getting term insurance that works to protect your financial plan.

Now, if you become super wealthy and the amount to be inherited is expected to be huge (beyond tax-free allowances) -- then outside of Japan at least there are other types of insurance that never expire, designed to offset/minimize tax liability to your wife/children etc.

 

[ethzz]

@enddayshappy An option to check on is insurance thru work--thru a shakihoken add-on if possible. You may be able to do this thru your employer, and/or your wife may be able to add you via hers. That latter will not be 30M, maybe 3 to 5.

Sure, it's tied to your employment, but as described here, you would eventually be self-insured and not need it.

 

[manishk012]

@ethzz 3-5M? That’s completely useless.

My company has all employees insured for 20M (30M for directors and up).

 

[ethzz]

@manishk012 It'd pay for a funeral, leaving everything else intact.

My company has all employees insured for 20M (30M for directors and up).

This sounds like an employee perk, I think OP is shopping on their own.

 

[amandasaved]

@enddayshappy I recommend having a session with Hokken no Madoguchi. I recently went and it was very informative regarding the various options. They did try to sell me all sorts of stuff tbh (including investment products), but it was still valuable to go there.

Everyone's situation is different, but I ended up getting a decreasing term insurance; the lump sum payment is high if I die in the next 10 years, then gradually decreases until 65 and none of the money will come back. I chose this because If die early, I would like my wife to have a high lump sum to buy an apartment + a few years living expenses (she doesnt work). I think that if I die in my late 50's or 60's I will have saved enough for old age, so a large pay-out is not needed. I'm also 40 btw and planning on having my first child soon.

I ended up going for Sony and the cost is 13,000/month. Btw, Sony quoted my the exact same price as Hoken no Madoguchi, there was no saving for signing directly with them.

 

[sayno2circ]

@amandasaved thank you, that was helpful.

 

[bigmax14]

@enddayshappy William Russell all the way.