Can Life Insurance Be Held In An IRA? 
In a word , no . The tax law prohibits life insurance being purchased in an IRA . However , you may be able to roll your IRA to a qualified plan tax free . Life insurance can then be purchased through the qualified plan within certain limits . This strategy requires the help of legal and insurance specialists to do properly . And it requires a plan controlled by you through your own business or an employer plan that will accommodate your needs . Please note that while you may be able to then buy life insurance within the qualified plan the purchase of life insurance in the plan will trigger a certain amount of taxable income . This strategy has its proponents and detractors for a variety of reasons . However , if you have poor health and can still qualify for life insurance this could be a great strategy . And it may make sense in other situations . Consult with a qualified life insurance specialist about your options and then employ legal counsel to implement the plan if you choose to proceed . 