Nippon Life Insurance Co has said that it will raise its promised yields on some retail insurance products with regular premium payments for the first time in about 40 years.
The types of plans are savings insurance products, such as annuity insurance. It will apply to new policies from 2 January 2025, reported Jiji Press.
Nippon Life’s promised yields will rise from the current 0.6% to 1% for annuity insurance, from 0.25% to 0.4% for whole life insurance, and from 0.85% to 1% for education endowment insurance.
In line with the increases, premiums are expected to be up to 5% cheaper.
The decision follows the Bank of Japan’s policy shift to raise interest rates.