Life Insurance & Earthquake Insurance Deductions
Claim life insurance and earthquake insurance deductions using the premium deduction certificate. Understanding new vs. old system categories and how to calculate the deduction is key.
【How life insurance deductions work】
Contracts signed from 2012 (Heisei 24) onward: new system
Contracts from before 2012: old system
New system's 3 categories (up to ¥40,000 each, ¥120,000 total limit):
① General life insurance deduction
② Nursing / medical insurance deduction
③ Individual annuity insurance deduction
Old system: 2 categories — general life insurance and individual annuity (up to ¥50,000 each, ¥100,000 total)
【Calculation method (new system)】
Annual premium ≤ ¥20,000 → full amount deducted
¥20,001–¥40,000 → premium × ½ + ¥10,000
¥40,001–¥80,000 → premium × ¼ + ¥20,000
Over ¥80,000 → flat ¥40,000
【Earthquake insurance deduction】
Earthquake insurance: full annual premium up to ¥50,000
Old long-term non-life insurance: up to ¥15,000 (for qualifying contracts)
When both apply, ¥50,000 is the combined cap.
【Documents required】
Submit the "deduction certificate" mailed by your insurer in October–November to your company's year-end adjustment team.
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