Can An IRA Own Life Insurance? 
That is an excellent question ! The answer is no , because the IRS prohibits it . However , there are retirement plans that do allow the plan to include life insurance . They are very closely watched by the IRS , and the premiums paid into the account must be a smaller percentage than what your employer contributes . The death benefit must also be small enough to be considered `` incidental '' to the value of the entire portfolio.The ways the premiums are invested are mandated , and it has to be an employer run plan . There are also tax differences from your normal , unqualified life policy . Thanks for asking ! 