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Housing loans and serious illness in Japan

Housing loans and serious illness in Japan

You will borrow money from a bank when you buy real estate in Japan. Or, even if you have enough cash to buy the real estate, you might consider borrowing money from a bank to buy it after reading this article.

This is an explanation of a special clause that will make your debt to the bank disappear if you get cancer or something after you borrow money from the bank. You should add the three major disease guarantee clause when you borrow money from the bank. I will explain this clause.

Housing loans and Group credit life insurance(団体信用生命保険) in Japan

You will join the group credit life insurance when you borrow money from the bank to buy real estate.

If you die or become severely disabled after borrowing money, the insurance company will repay your debt to the bank on your behalf. However, if you commit suicide within one year of borrowing money from the bank, your loan balance will not be zero.

Also, if you had a cause to become severely disabled before borrowing money from the bank, your loan balance will not be zero even if you become severely disabled.

But, just joining this insurance will not cover you if you get cancer or something. So, you might want to add the three major disease guarantee clause.

Housing loans and Three major disease guarantee clause in Japan

If you are diagnosed with cancer (excluding skin cancer) specified by the bank, or if you suffer from acute myocardial infarction or stroke and become in a certain condition (hospitalized for more than 60 days, or requiring surgery), the insurance company will repay your debt to the bank on your behalf.

So your loan balance will be zero. In other words, your debt to the bank will disappear if you get cancer or something.

About half of the deaths in Japan are caused by cancer and acute myocardial infarction or stroke.

So, you might also suffer from these diseases.

Your debt to the bank will also be zero even if you do not die from these diseases.
Your debt to the bank will also be zero even if you return to work safely one month after suffering from these diseases.
So, if you suffer from these diseases, you can pay high medical expenses and receive advanced medical care without hesitation if you join this clause.

However, this clause will not work if you are diagnosed with cancer within 90 days of borrowing money from the bank.
Also, this clause will not work if a doctor proves that you already had cancer before borrowing money from the bank. So, your loan balance will not be zero.

In case of acute myocardial infarction or stroke, this clause will work if a doctor proves that you cannot return to work for more than 60 days due to the disease.

If you suffer from acute myocardial infarction or stroke and undergo a prescribed surgery, this clause will take effect even if you return to work within 60 days, and your debt will be forgiven.

You cannot add this clause if you have already borrowed money from the bank.
You need to apply for this clause at the same time as borrowing money from the bank.

However, only people under 50 years old can apply for this clause. So, you cannot apply for this clause after you are convinced that you are getting old and are likely to get cancer soon.

You cannot join this clause if you have suffered from cancer in the past. But, you can join this clause even if your parents have suffered from cancer. The influence of genetics might be strong.

There is an interest rate increase when you join this clause. In other words, you have to pay extra money to the bank as interest. That’s the problem.

And, after joining this clause and borrowing money, you cannot cancel only this clause. So, you need to think carefully at the stage of borrowing money whether you are likely to get cancer in the future. You might need this clause if you work long hours in a stressful job. You might not need this clause if you already have other insurance.

That’s all.