Recent estimates show that 18 percent of the worldwide total for life coverage is from Japanese policyholders.
The latest insurance news releases in Japan are estimating that the average life insurance premiums are approximately $5,300 (454,300 yen) per year.
This is far higher than the global average for the same type of coverage.
In fact, this insurance news indicates that Japanese life policyholders pay approximately 18 percent of the global total in premiums, even though the country represents only 2 percent of the worldwide population.
The per capita spending, according to this insurance news, is the highest around the globe.
The average per capita spending for life coverage is about $3,500, making it far greater than that in any other country. Toru Ushiroda made a statement based on this insurance news, saying that the reason that the Japanese consumer is paying so much for this coverage is that “insurance companies can easily coax (trusting Japanese) consumers into signing life insurance contracts.”
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Toru Ushiroda is the author of “Seimei Hoken no Wana” (which translates to “Life Insurance Trap”), and is also a consultant in the industry. Ushiroda explained that a startlingly large number of policyholders aren’t even fully aware of what type of coverage they have received, going on to say that “People have told me they joined a particular scheme because they ‘often saw it advertised on television so thought it to be a popular and reasonable plan.’”
Ushiroda also explained this insurance news by saying that these customers maintain their payments as they are under the impression that they are required to do so. These premiums are viewed in the say way as the taxes that are automatically deducted from an individual’s income. This expert also believes that even when the terms of the policy look as though they are favorable, at the premiums being charged, it is unlikely that the benefits will be significant.
The advice being given, following this insurance news, is that the consumer should better educate him or herself about the premiums and benefits of a policy. In this circumstance, the net premiums should be on the larger side of the ratio than the additional premium.