The tripartite ruling coalition approved Tuesday an amended bill that would allow life insurers to cut yields guaranteed to policyholders, resulting in a possible cut in payouts, coalition officials said.

The government is scheduled to present the bill to the Diet on Friday after the Cabinet finalizes a set of proposals aimed at revising the Insurance Business Law, government officials said.

The Liberal Democratic Party, the New Conservative Party and New Komeito endorsed the bill prepared by the Financial Services Agency during separate party panel meetings.