HTS for SP -2 02 LIFE INSURANCE

1,BASIC of LIFE INSURANCE

i Basic life insurance terms

Terminology	Explanation
Contractor	A person who enters into a contract with an insurance company (a person who has contractual rights and obligations)
Insured	A person covered by insurance.
Beneficiary	A person who receives an insurance payment.
Premium	Money paid by the policyholder to the insurance company.
Insurance money	Money paid by the insurance company to the beneficiary if the insured dies or lives to maturity.
Benefits	Money paid by the insurance company when the insured is hospitalized or undergoes surgery.
Cash surrender value	Money that is refunded to the policyholder when the insurance contract is canceled. (Kaiyaku Henreikin)
Main Contract	The basic part of a life insurance policy.
Special contract	Contracted in addition to the main contract (cannot be contracted independently).

These are the fundamental terms in the context of life insurance. Understanding these terms will help individuals comprehend the features and benefits of their life insurance policies more effectively.

ii Type of life insurance

Type of Life Insurance	Explanation
Death Insurance	Insurance that pays out in the event of the death of the insured person or in the event of severe disability.
Life Insurance	Insurance that pays out only if the insured person is alive until the end of a certain period. If the insured dies during the term, there is no payout.
Mixed Life and Death Insurance	Insurance that combines death insurance (pays out upon the death of the insured) with endowment insurance (pays out at the end of a fixed period).

These are the three primary types of life insurance based on their payout conditions. Each type serves different purposes and offers various benefits to policyholders. When choosing a life insurance policy, it’s essential to consider individual needs, financial goals, and family circumstances.

2,BASIC of INSURANCE FEE

i Basis of premium calculation

The basis for calculating insurance premiums includes the following elements:

1. Expected Mortality Rate: This is the mortality rate calculated based on statistics for each gender and age group. For death insurance, lower expected mortality rates result in lower premiums, while higher rates lead to higher premiums.（予定死亡率）
2. Expected Interest Rate: It refers to the anticipated investment yield that the insurance company assumes. Higher expected interest rates lead to lower premiums, whereas lower rates result in higher premiums.（予定利率）
3. Expected Expense Rate: This represents the projected costs necessary for the insurance company to operate. Lower expected expense rates lead to lower premiums, while higher rates lead to higher premiums.（予定事業費率）

ii Premium composition

The structure of insurance premiums is as follows:

1. Net Premium: This portion of the premium is allocated towards the insurance payout made by the insurance company. In the case of death insurance, it is allocated for the payment of death benefits. For survival insurance, it is allocated for the payment of survival benefits. These net premiums are calculated based on the expected mortality rate and expected interest rate.（純保険料）
2. Additional Premium: This is the cost incurred by the insurance company to support its operations. It is calculated based on the expected expense rate.（付加保険料）

3,BASIC of DIVIDEND

i Surplus and Dividends.

In insurance contracts, there may be a difference between the premiums calculated based on expected interest rates and expenses and the actual costs incurred. These expected interest rates and expenses are set by insurance companies with a margin of safety. As a result, regular premiums can be higher than the actual costs, and this difference is called surplus.

Surplus refers to the remaining amount after deducting actual expenses from the premiums collected by the insurance company. Insurance companies may use this surplus to pay dividends to policyholders. Dividends are a way to give back benefits to policyholders based on the insurance company’s financial performance.

Insurance companies carefully manage the use of surplus and provide appropriate dividends to policyholders, building trust in their services. Surplus also plays a crucial role in ensuring the stability and future growth of insurance companies.

保険料－実際にかかった費用＝剰余金（死差益、利差益、費差益）

剰余金（Surplus）は、保険会社が保険料を収めた後、実際の経費を差し引いた残りのお金を指します。この剰余金は、保険会社が予定されたリスクや経済条件に対して余裕を持たせて設定した保険料から生じます。保険会社は剰余金を利用して、保険契約者に配当金を支払ったり、その他の方法で利益を還元することがあります。

余剰金（Excess）は、一般的に保険契約の損害保険において使用される用語です。保険契約者が被保険事象に遭遇した場合、一定の金額までは自己負担（免責金額）を負うことになります。この自己負担を超える部分を余剰金といいます。余剰金は保険会社が負担する範囲を示すものであり、保険契約者が支払うべき金額を定めるのに使われます。

ii Insurance with and without dividend payments

There are insurance policies with dividend payments and those without dividends. Here are the classifications:

1. Participating Policies (3 Surplus Types): These policies provide dividend payments based on three elements: mortality gains, interest gains, and expense gains.
2. Semi-Participating Policies (Interest Surplus Only): These policies offer dividend payments based solely on interest gains.
3. Non-Participating Policies: These policies do not provide dividend payments.

Generally, insurance policies with dividend payments tend to have higher premiums compared to policies without dividends. This is because when dividends are paid, a portion of the premium is returned to the policyholders, which adds to the overall cost. Consequently, policies without dividend payments tend to have relatively lower premiums.

4,CONTRACT PROCEDURE

i Obligation to notify

“Disclosure obligation” refers to the responsibility of the policyholder to provide accurate information to the insurance company when entering into an insurance contract. In insurance agreements, the policyholder must honestly and thoroughly disclose all relevant information about themselves or the insured person, including risks, health status, and past insurance history.

The disclosure obligation is crucial for the insurance company to assess risks appropriately and set premiums at a fair level. If the policyholder withholds or provides false important information, the insurance company may refuse to pay insurance claims or declare the insurance contract void.

It is essential for the policyholder to honestly disclose all relevant information before entering into an insurance contract. This builds trust between the policyholder and the insurance company, ensuring a proper insurance agreement and smooth processing of future insurance claims.

診査医（しんさい）：保険会社が保険契約を結ぶ際に、被保険者の健康状態やリスクを確認するために派遣される医師です。診査医は被保険者に健康診断や医学的な質問を行い、情報を収集します。保険会社がリスクを適切に評価し、適切な保険料を設定するために重要な役割を果たしています。”medical examiner” “medical underwriter”.

1か月5年

ii Responsibility start date

Liability Commencement Date is the date on which the insurer begins its contractual liability. The date of commencement of liability for the insurance contract will be the day on which (1) the application, (2) notification, and (3) the first payment of the insurance premium are completed.

5,PAYMENT of INSURANCE PREMIUMS

i How to pay insurance premiums.

Premium payment methods include lump sum, annual, semi-annual, and monthly payments.

ii Grace period for non-payment of insurance premiums.

If the insurance premium payment is missed, the policy does not immediately lapse; there is a grace period provided.

For monthly premium payments, the grace period extends from the first day to the last day of the following month after the due date.（猶予期間は払込期日の翌月初日から末日まで）

For annual or semi-annual premium payments, the grace period starts from the first day of the following month after the due date and extends to the policy anniversary day of two months later.（猶予期間は払込期日の翌月初日から翌々月の契約応当日まで）

iii Revocation and reinstatement of contract

Revocation and reinstatement of contract
① Revocation
If the premium is not paid within the grace period, the policy will become invalid. This is called revocation.
② Resurrection
Even if the contract has expired, it can be restored to its original state by performing the prescribed procedures within a certain period of time. This is called resurrection. In the case of reinstatement, unpaid insurance premiums (insurance premiums at the time of reinstatement will be applied at the premium rate before expiration) must be paid in a lump sum. Also, depending on your health condition, you may not be able to revive.

6,CALCULATEION of REQUIRED INSURANCE PREMIUM

i Overview

The required amount of coverage is the amount of money required to cover the bereaved family in the event that the head of the household dies.

The required amount of coverage is usually maximum at the time of the birth of the youngest child and gradually decreases with the passage of time thereafter.

逓減（ていげん）

7,MAIN LIFE INSURANCE

The basic types of life insurance are term insurance, whole life insurance and endowment insurance.

i Term insurance

Term life insurance is a type of insurance that pays a benefit in the event of death or severe disability within a specified period of time.

The insurance premium is cheaper than other types because there is no maturity benefit.

Term life insurance includes level term life insurance（平準定期保険）, decreasing term life insurance（逓減定期保険）, increasing term life insurance（逓増定期保険）, and income protection insurance（収入保障保険）.

定期：一定期間の期間が決まっていること

• level term life insurance（平準定期保険）：保険金額が一定の定期保険
• decreasing term life insurance（逓減定期保険）：保険金（Insurance money）額が、一定金額ごとに減少する定期保険。　※保険料（Premium）は一定
• increasing term life insurance（逓増定期保険）：保険金（Insurance money）額が、一定期間ごとに増加する定期保険。　※保険料（Premium）は一定
• income protection insurance（収入保障保険）：保険金（Insurance money）額を年金（pension）形式で（複数年に分けて）支払われる定期保険。※年金形式ではなく、一時金で受け取ることができるが、一時金の場合、年金形式の受取総額より少なるなる。

ii Whole life insurance

Whole life insurance is a type of insurance that provides coverage for the rest of your life.
There is no maturity benefit, but the surrender value at the time of surrender is large, making it a highly savings product. However, in the case of single-premium whole life insurance, you need to be careful because if you cancel early, the surrender value will be less than the premium paid.

iii Endowment insurance

Endowment insurance is a type of insurance that allows you to receive a death benefit if you die within a certain period of time, and you can receive a maturity premium (the same amount as the death benefit) if you are alive at maturity. Life and death mixed insurance.

特徴	定期保険	終身保険	養老保険
保障期間	一定の期間	生涯（終身）	一定の期間
死亡時の保障	契約期間内のみ	生きている限り	契約期間終了時
保険料	低め	高め	中程度
生存時の特典	なし	現金価値がある場合あり	保険金が支払われる
保険選択の利点	短期的な保障を希望する	一生の保障が必要な場合	特定の目標を達成するため

8,OTHER LIFE INSURANCE

i Whole life insurance with term insurance rider

Whole life insurance with a term insurance rider is an insurance that has a whole life insurance as the main contract and adds a term insurance rider to it to increase death coverage for a certain period of time.

There are two types of life insurance based on the duration of the policy and premium payment:

1. Whole-Term Type: The insurance coverage period is the same as the term insurance, and the premium payment period is the same as that of a whole life insurance policy.
2. Renewable Type: The insurance coverage period is shorter than the term insurance, and the premium payment period is also shorter than that of a whole life insurance policy. Upon expiration, the policy needs to be renewed.

When choosing between these types, it’s essential to consider individual needs and circumstances.

ii Account type insurance（Interest rate variable savings whole life insurance.）

Account-type insurance is an insurance that allows you to freely set the premiums paid within a certain range for the accumulation portion and the protection portion.

※After the premium payment period expires, the reserve can be transferred to whole life insurance or an annuity.

iii Group insurance

Group insurance is a type of insurance contracted by a group (company or association).Insurance premiums are cheaper because you enroll in a group.

(1) Comprehensive welfare group term insurance.
Comprehensive welfare group term insurance refers to term insurance with a policy period of one year, in which the insured person is a legal entity for the purpose of protecting the bereaved families of employees, etc., officers, and employees. The insured person receives the insurance money. Family members of officers and employees. In addition, although it is a corporation, in the case of a corporation, the consent of the insured person is required.

(2) Human Value Special Contract.
When an officer or employee dies, the corporation loses the profits generated by that officer or employee. In addition, the cost of hiring other employees is required. In preparation for such a situation, there is a human value rider (a rider that pays death benefits, etc. to the corporation in the event of the death of an officer or employee).

ヒューマンバリュー特約：生命保険において人間の命の価値に関連する特約（オプション）

iv Child insurance

Education endowment insurance is an insurance that allows you to receive a congratulatory money for your child’s advancement and a maturity insurance at maturity.
In principle, the parent is the policyholder and the child is the insured person.
A feature of this insurance is that if a parent dies, future insurance premiums will be exempted, and congratulatory money for advancing to higher education and maturity benefits will be paid as originally contracted.

v Variable insurance

①Variable insurance is insurance in which the insurance company invests stocks, bonds, etc., and the amount of insurance money and cash surrender value fluctuates according to the investment results. Variable insurance assets are managed in a separate account (special account) from the assets (general account) of term insurance (insurance with fixed insurance benefits and cash surrender value).

②There are two types of variable life insurance: whole life insurance and fixed term insurance. In both cases, there is a minimum guarantee (called basic insurance) for death insurance and severe disability insurance, but there is no minimum guarantee for surrender value and maturity insurance.

9, Individual annuities and variable individual annuities

i Individual annuity insurance

Individual annuity insurance is insurance that allows you to receive an annuity when you reach a certain age decided at the time of contract.

Classification according to how individual pension insurance is received.
(1) Life annuity: A type in which you can receive an annuity while you are alive.
(2) Life annuity with guaranteed period: A type in which you can receive an annuity while you are alive after the guaranteed period, regardless of whether you are alive or dead during the guaranteed period.
(3) Fixed-term annuity: A type in which you can receive an annuity for a certain period of time while you are alive.
(4) Fixed-term annuity for months guaranteed: A type in which you can receive an annuity for a fixed period of time after the guaranteed period, regardless of whether you are alive or dead during the guaranteed period.

⑤ Fixed annuity: A type that allows you to receive an annuity for a certain period of time regardless of your life or death.
(6) Married couple pension: A type in which a pension can be received as long as one of the spouses is alive.

ii Variable individual annuities

Variable individual annuity insurance refers to insurance in which insurance companies, bonds, stocks, etc. are invested, and the amount of annuity or surrender variable annuity fluctuates according to the investment results. For death benefits received if you die before annuity payments begin. Are there generally minimum guarantees? There is no minimum guarantee for surrender value.

10,Main rider

You can add a rider to your life insurance policy to protect you in the event of illness or injury. Note that special agreements cannot be contracted independently, and are contracted in addition to the contract. Therefore, if you cancel the poetry contract, the special contract will also be cancelled.

i Specified disease coverage insurance rider

ii Living Needs rider, etc.

特約名	対象	内容
特定疾病保障保険特約	特定の疾病に罹患した場合	特定の疾病（がん、心臓病など）に対して一時金や給付金を提供。
		疾病の診断や治療に伴う経済的な負担を軽減するための特約。
リビングニーズ特約	老後の生活資金や医療費、介護費などの支出	老後の生活資金や医療費、介護費などを補償。リタイアメント後の経済的な安心を提供する特約。
先進医療特約	先進医療や特定の治療法を受けた場合	先進医療や特定の治療法の費用を補償。医療の進歩に対応して高額な医療費に備える特約。

11,Systems and methods for continuing contracts

i Automatic transfer loan system and policyholder loan system

自動振替貸付制度：保険料の支払いが難しいときに、保険会社から一時的にお金を借りて保険を続ける制度。

契約者貸付制度：保険契約者が保険からお金を借りる制度。急な支出に対応しながら保険を続けることができる。

ii Paid and extended insurance

払済保険と延長保険は、保険の支払いや保障の期間に関連した保険のタイプです。以下にそれぞれの特徴を簡単に説明します。

払済保険： 払済保険は、一定の期間内に保険料を支払い終えると、その後は保険料を支払わずに保障が継続する保険です。つまり、保険料を一定期間（例: 10年、20年）支払った後は、その後の保険料支払いが不要となりながらも、保険の有効性が続きます。一定期間内であれば、保険料支払いを終えても保障が継続するため、将来的な負担を減らすことができる特徴があります。

延長保険： 延長保険は、保険期間が終了した後に保障を継続するための保険です。通常、保険期間が終了した場合には保障も終了するのですが、延長保険を選ぶことで、一定の条件下で保険の有効性を延長することができます。延長保険は追加の保険料支払いが必要となることがありますが、保険の有効性を維持することができるため、特定のライフステージにおいて保障を維持するための選択肢となります。

12,contract review

i Contract conversion system

契約転換制度（けいやくてんかんせいど）は、保険契約者が元の保険契約を別の保険商品に変更するための制度です。この制度によって、保険契約者は既存の契約を新しい条件や内容に合わせて変更することができます。契約転換制度は、保険契約者のニーズやライフステージの変化に対応するために利用されることがあります。

ii Increase/decrease

保険金額を増額・減額することは可能。

13, life insurance and taxes

1年間の生命保険を支払った分は、生命保険料控除として所得から控除できる。
最高控除額は、それぞれ所得税：40,000円　住民税：28,000円（合計所得税120,000円　住民税：70,000円）となる

i Life insurance and taxes

ii Death benefits and taxes

iii Maturity benefits and taxes

生命保険料控除 の種類	対象	内容	控除額
一般の生命 保険料控除	一般的な生命保険料	生命保険に支払う保険料に対する控除。	最高40,000円
個人年金 保険料控除	個人年金保険料	個人年金保険に支払う保険料に対する控除。	最高40,000円
介護医療 保険料控除	介護保険料、医療保険料	介護保険料や医療保険料に対する控除。	最高40,000円

iv Tax exempt insurance claims and benefits

死亡保険金と税金

相続税：契約者・被保険者と受取人が別
所得税：契約者・受取人と被保険者が別
贈与税：契約者・受取人・被保険者が別

14,Corporate contract insurance

Corporate policyholder Insurance in which an employee or officer is the insured person is called corporate policy insurance.

i Preparing necessary business funds

Corporate policyholder Insurance in which an employee or officer is the insured person is called corporate policy insurance.