Intelligence

How to juggle investing and life insurance end

I need experts on personal finance, investing and retirement with tips on how to manage investments to handle the termination of a life insurance policy. People who take out term policies, who find their permanent policies too expensive or no longer necessary can opt to go without life insurance — and a recent Wall Street Journal story noted that even permanent policies eventually end, at 100 for some older policies still in effect. So I’d like suggestions on how to prepare for this. What’s the best way to invest to make up for the absence of life insurance? First, how do you figure how much you’ll need? Should you, for instance, aim to build a fund equal to the death benefit, or is something smaller good enough? Walk me through the steps one would take to decide. How much risk should one take with this fund? Should one allocate assets the same as in other retirement investments, for instance? What about alternatives like a deferred annuity? I’m looking for tips for do-it-yourselfers and readers who want to ask their advisor smarter questions, so please don’t tell me every situation is different and everyone should consult a pro. Finally, what issues need to be considered once the insurance policy has ended? Would the offsetting fund continue to be invested as it was? What else should I be asking? Requirements: I prefer responses by email containing usable content and quotes, and because I usually get plenty I rarely answer responses that merely offer a source for interview. Please include the source’s contact info, full name, preferred title in its shortest form, firm and location.