Japan Considers Extending Life Insurance Premium Tax Breaks for Child-Rearing Households

Japan's government alongside the ruling Liberal Democratic Party and Japan Innovation Party are reviewing an extension of tax relief measures tied to life insurance premiums for households with dependents under age 23. Currently, under the fiscal 2025 tax reforms, the deductible limit was increased from 40,000 yen to 60,000 yen for eligible child-rearing households through 2026. The proposed extension would maintain this elevated deductible cap into fiscal year 2027, subject to inclusion in the 2026 tax system reform package to be finalized by year-end.