The United States objected Monday to Japan's approval of the sale of a new postal insurance product by the public corporation that could compete directly with private-sector products.

The U.S. expressed its opposition during a working-level meeting on insurance policy in Tokyo, Japanese officials said.

On Friday, the Public Management, Home Affairs, Posts and Telecommunications Ministry approved a plan by Japan Post to launch the new product on Jan. 1.

Japan's private-sector insurers, the U.S. and a number of other countries, including those of the European Union, strongly oppose the plan.

But Tokyo defended its decision at the day's meeting, saying there is no legal problem with the new insurance product, sources said.

The planned product is similar to the so-called fixed-term, whole-life insurance policy offered by private insurers. The product is expected to compete directly with products offered by private overseas and Japanese insurance companies.

The new insurance policy pays full benefits in the event of the death of a policyholder of working age, and lower benefits after retirement age, allowing the policyholder to limit premiums by between 40 percent and 70 percent.

Fixed-term, whole-life insurance products have been the mainstay of private-sector life insurers. Japan's postal insurance services have focused on savings-oriented life insurance products.

The Japanese delegates to the meeting included officials of the posts ministry, the Foreign Ministry and the Financial Services Agency. The U.S. side included officials of the Office of the United States Trade Representative and the Department of Commerce.

The Japan-U.S. insurance talks began in 1993 and are held annually.