Can Insurance cash values be invested in IRA's?

Can I move insurance cash values to a self directed IRA.

Can Insurance cash values be invested in IRA%26#039;s?credit union

Sure, but you%26#039;re better of to buy term insurance, and put the difference between term %26amp; whole into the IRA.

Can Insurance cash values be invested in IRA%26#039;s? loan

It depends on the insurer.

You could do it, theoretically, if the insurer allows it.

But most insurers have more directed investment options for the cash value.

Plus you%26#039;d be better off taxwise by using your cash in the policy to buy up extra coverage which your heirs can get tax free, rather than you have an IRA that you have to pay tax on when you take the money out.|||No, you can not. The cash value stays with the policy unless you take a policy loan or do a partial surrender.

If I misunderstood and you want to know if you can take a policy loan and put the money into an IRA...sure you can. However, keep in mind that there is a limit to how much you can contribute to an IRA every year. If you do reach the limit, you can even invest in ETF%26#039;s, which will give you lower fees and tax impact than a mutual fund (assuming you%26#039;re investing in something like SPDR%26#039;s or iShares). But keep in mind that the cash value buildup inside insurance is tax-deferred and may be better off left inside the policy (assuming you have the policy with a company that has a competitive dividend interest rate if whole life).

If you really want to have insurance and invest the money yourself, you would be better off with a term policy and investing the rest on your own. If you currently have a policy and want to essentially split it apart, I would not recommend it UNLESS you could qualify through underwriting at a good class still for a new term policy.|||I sell Life Insurance. Some of these responses are saying to buy Term and invest the difference. It wasn%26#039;t a bad concept years ago, but I can sell Whole Life policies at the price of Term, so why buy Term? Once your Term policy is over, your insurance is gone, then you%26#039;ll have to requalify to get more coverage, and your premium will go up BIG TIME! If you%26#039;re interested, I can show you a Life Insurance policy that is also an investment! It will make you money and the earnings are tax free, because the Tax Revenue Code 7702 states that any investment in a life insurance policy cannot be taxed! Might as well be protected AND have it make money for you! In an IRA, you will be taxed when it%26#039;s time to take your money out, and you can only touch your money when you reach 59 1/2. If you take your money out before then, you can be taxed around 42%! It%26#039;s an early withdrawl tax, state, federal, etc etc. With the policy I%26#039;m offering, you can take money out after the first policy year with NO TAX PENALTIES! And the rate of return is better! Of course, there%26#039;s more information, but e-mail me if you%26#039;re interested in knowing more!