Japan: Setting Up Life Insurance

Japan’s number of expats living in the country hit just under 2.5 million in January 2018. While large cities are where most foreigners will choose to live, there’s a trend of more expats moving to the countryside.

Foreigners have found a great work environment in Japan, especially in the tech and tourism sectors. Japan has the largest number of people who identify themselves as “middle class” in the world and the quality of life is extremely high. Life in Japan for many expats, often becomes a long-term choice but due to the numerous hurdles in securing reliable, easy to understand life protection many will look to establish protection outside of Japan that covers them regardless of where they may live.

Many expats seek to find an insurance plan that will cover their:

  • Funeral costs
  • Body transport
  • Outstanding mortgages
  • Debts
  • Cost of living for surviving spouse and/or children
  • Education costs for children

If you don’t how much life insurance you need, it’s important to speak to an agent or work with an online insurer that can recommend premium limits to you.

Japan’s Insurance Options for Expatriates

Employers are the key to most health insurance, although there are options for international medical coverage offered. You should consider a lot of insurance types, but one of the most common is life insurance.

These life insurance policies often last 20 to 25 years and can have policy limits of your choosing. If you seek a policy in excess of $500,000, you’ll have to take a medical exam if you’re over 50 in most cases. The higher the limit that you have, the higher the premiums will be.

As an expat, there are a few things that you should consider:

  • Life insurance in your home country may not provide the coverage you need in Japan
  • Expats are at-risk of having their policy void upon their death if they:
    • Lie to the insurer about where they live
    • Reside in Japan for six months or more
    • Misrepresent information on the policy
  • If you move outside of Japan, the policy you take out may not follow you if it’s not expat insurance

Two main types of insurance can protect you and your loved ones: term life insurance and critical illness insurance. Term life insurance is for a limited period of time and there’s a guaranteed payout upon your death. Critical life insurance provides you the necessary coverage you need for any serious illness while living in Japan, including stroke, heart attack, spinal injury or others.

Risks of Securing Insurance in Japan

A main risk that you face when taking out an insurance policy in Japan is that Japanese is the main language. It’s reported that 20% to 30% of people speak some level of English, while 2% to 8% speak English fluently.

Japan is one of the countries in the world on the “low proficiency” list in English proficiency. Other languages outside of Japanese also have low levels of proficiency.

When you’re signing a policy, it’s important that you’re able to read through all of the terms and conditions available. If you’re not well-versed in Japanese or aren’t a native, it can be difficult to sign a policy and understand what exemptions and limitations exist.

If you don’t know what you’re signing, there’s no way to know if the coverage is suitable for an expat.

It’s important to seek an expat life insurance policy that provides you with the coverage you need in Japan or any other country you plan on residing in. Seek a policy written in your native tongue so that you can confidently read and understand the policy that you’re paying premiums on each month.

Securing Expat Term Life Insurance

Expats live a unique lifestyle that involves travel and living outside the norm. These adventurers should seek expat term life insurance online. A lot of online policies will offer coverage in 200+ countries worldwide, but make sure to look through the terms and conditions thoroughly.

With extensive coverage and no medical testing requirements for policies with $500,000 or less payouts, online insurers are the go-to option for expats.

These online life insurance companies provide policies in terms that you understand and fill the gap that standard insurers still have. All it takes is a quick, 15-minute application and approval process that will provide you peace of mind that if the worst happens to you, there’s no financial uncertainty looming over your loved ones.

Term life insurance is the responsible option for any expat.

Related Posts