Work insurance should be the icing on the cake, rather than your primary source of cover.īefore you choose how much coverage you and your family need, you need to decide on how much of a premium you can afford. Having private cover ensures that no matter who you work for, or where your career may take you, you can keep your family protected financially. Should this happen, you may then be forced to take out private cover, which may be more expensive as you are now older.įor ex-pats, a forced move to another country by their company could also cause their life cover to end suddenly. In most cases, if you quit, or if your employment is terminated for any reason, the cover also goes away. Most work insurance plans will only cover you while your company employs you. If you have cover through your work, you should review how much protection you have, and also what the terms and conditions are.Īs a general rule, we advise keeping your private life insurance separate from your work cover. Already have some cover through your workplace? Probably not a good idea to only rely on it. This way, your beneficiaries won’t be forced to sell their home or any other assets to pay the tax bill, if they’re unable to fund the bill from other sources. One way to ensure your family can cover the tax bill is to take out a whole-of-life insurance policy for the amount your estate will owe. Japan has high inheritance taxes, and as a long-term foreign resident, your family may be on the hook for taxes, even on your foreign assets. It can help your family pay off existing debts and mortgages, children`s education, maintain ongoing living expenses, and so much more.Īnother reason for opening a life insurance policy (as a foreigner in Japan) is to help offset the Japanese inheritance tax your family will have to deal with, should you pass away. Life insurance gives your loved ones a chance to adjust over time rather than having to move to a downsized home or find a new job right away. Too often, when an income earner dies, loved ones are forced to make tough decisions during an emotionally hard time. The most common reason to take out life cover is to ensure your family is financially secure if you are suddenly not around to do so. With the right coverage, your family will have enough to cover outstanding debts and maintain their current way of living. It is designed to protect your loved ones after you die or are no longer able to work. You agree to pay for the policy on a regular basis, and the insurer agrees to pay a sum of money to your beneficiaries if you die. Life insurance is a contract between you and a life insurance company. Here are 6 points to consider if you are planning on getting life insurance as a foreigner in Japan: What is life insurance? Insurers from your home county are also unlikely to sign off on cover to anyone living internationally. Have tattoos? Not surprisingly, even this can be an issue with some insurance companies. If you are a foreigner in Japan, deciding on types of cover can be even more challenging, as most local insurance policies are designed for the domestic market, and not suitable for ex-pats who may not be in Japan forever, or for those who are not fluent in Japanese. It can result in not taking any action at all. Once you’ve decided you need life cover, there are so many different types of coverage and policies that it can be a daunting experience. This is compounded further when dealing with life insurance as a foreigner in Japan. Such an event would bring not only emotional distress, but also potentially catastrophic financial ruin. Yet too few of us stop to think about the financial consequences to our loved ones if we were to pass away unexpectedly.
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We all know that life insurance is an essential part of life planning.