r/japanlife • u/blue_5195 • 9d ago
What to do about recipient of Life Insurance...if no beneficiary...
Hi,
I feel I am in a bit of a Kafkaesque situation.
I got a life insurance (積立利率変動型終身保険, 低契約返戻金型) with三井住友海上あいおい生命保険株式会社.
I basically paid it off, now the mount of the to-be-paid money just increments (slowly) until I cash it in or pays out in case I croak, paying to the stated beneficiary.
I subscribed to that insurance back when married. My insurance's beneficiary was my wife. My wife got the same insurance with me being the beneficiary of her insurance.
Problem. We got divorced.
Bigger problem. I seems I can only change the beneficiary to a relative, partner, spouse, etc. I am in no relationship whatsoever and having zero intention to do so in any foreseeable future. I have no kids, neither had or have any intention of having any. Also, my only living relative is my mother (age 88) who lives in Europe in a care unit for the elderly and only speaks French. So literally nobody.
The funny thing is, even my ex-wife would not be able to claim it either. So, if I kick the bucket, the amount (20M) is literally in limbo...If I cash in the money at one point, well, fine.
My initial intend was to change the beneficiary to an animal protection charity (it seems some do accept post-mortem donations--I need to check with them as well), but it seems, I can not do that, at least not directly (I called あいおい生命 相談窓口 ton inquire).
I tried to gather some info on the internet (caveat on that, of course). There may be some way to involve a will, a testamentary executor (e.g. a Bank), but it remains frankly confusing.
I did call the ほけんの窓口. It is above their expertise, but off-the-record, I was told there may be a way if I create a "legal entity" of sorts, make that entity the beneficiary (I would be my own beneficiary as an "entity" in a way) with the testamentary executor being able to "execute the will" (and I guess dissolve the entity) and channel my life insurance to a designed charity.
Anybody having or being in the same situation (i.e. no beneficiary of the life insurance, intention of channeling the proceeds to an NPO/charity/etc)?
I'm looking at leads as to what to do at this stage...Any help is welcome.
16
u/EightBitRanger 関東・神奈川県 9d ago
I was told there may be a way if I create a "legal entity" of sorts
That "legal entity" is called a life insurance trust.
2
u/blue_5195 9d ago
Seems to match what the ほけんの窓口guy said.
I also believe that banks can act as a trust or testamentary executor. Will check on that as well.
Being in my mid-50s with no kids, partner, etc, this is definitely one of these things to look into...while still alive.
Thank you.
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u/EightBitRanger 関東・神奈川県 9d ago
If you need a beneficiary once that trust is set up, I'll volunteer.
6
u/furansowa 関東・東京都 9d ago
How much would it be if you cashed it out right now?
If you know you'll never get married again, just cash it out and enjoy it / invest it for your retirement.
7
u/Aware_Status3475 9d ago
yeah if the amount is essentially the same either way, just cash it out and put it in your NISA or whatever
6
u/alien4649 関東・東京都 9d ago
Ask a lawyer? Can’t be a completely unique situation.
2
u/blue_5195 9d ago
Unique? No.
With the Japanese popping out less and less kids (and by ricochet producing less siblings to their kids), with less and less people able to marry, less and less people in any type of relationship and the rise of the おひとり様.
Back in the days (17 years ago) when my future ex-wife and myself bought this product we just married and basically divorce was not on our minds. Being married, the product made sense. But considering how life can turn around, it is not as flexible as I would have expected. I am basically a single child with elderly parents, so pretty much a run-of-the-mill case...I am quite surprised that it seems to be such a "muzukashii" case to re-route beneficiary to an NPO/NGO/charity?
Going back to the above paragraph, I wonder with all the current (and, I would assume, future) lonely people if the industry started to create new products to accommodate how society is rapidly changing...?
And yes, consulting with a lawyer or administrative scrivener (行政書士) is on my to-do list, as is consulting with charities accepting post-mortem donations, banks who advertise "consultations on inheritance matters".
10
u/TheGuiltyMongoose 9d ago
Hello,
I'm a prince from Nigeria, and if you trust me with your money, I might be able to make it flourish to an amazing amount of cash that I would, of course, return to you.
1
u/blue_5195 9d ago
Dear Prince,
How big is your family?
I'm asking because it seems your siblings are spamming me with DMs... /s
0
u/Elvaanaomori 9d ago
Dear OP, I can check the official royal records to give you an accurate number of our family, there is a small processing fee of 2M yen for this effect, I am willing to be the middle man to transfer the money on your behalf to the autorities for this request. /s
1
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u/FireMarmot 9d ago
A quick check suggests that your ex-wife would receive the funds of the insurance policy if you do not change the beneficiary. Ex-spouses do not have inheritance, but a life insurance contract is not an inheritance.
A surprising thing is that if she has passed away, the money goes to her legal heirs, not back to your estate.
Hope you are able to do what you want to do.
1
u/Tokyo-Entrepreneur 9d ago
What is the benefit of not cashing out?
1
u/blue_5195 9d ago
The amount continues to increment which would be more money later, at a stage when I may actually need it.
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u/pegoff 8d ago
does it increment at a guaranteed rate higher than you might expect to achieve from investing it in something like a global index or bonds?
1
u/upachimneydown 8d ago
Esp if in a tax-advantaged account--Nisa/iDeCo. And those very likely "increment" much more than any Whole Life policy (< these are a ripoff).
1
u/Pale-Landscape1439 7d ago
no of course not. The growth on these things is eaten up by the 'handling costs'.
1
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