Each year many people decide they no longer need life insurance coverage they bought years ago. Your IRA can buy their life insurance policy and pay the future premiums. Why? Because you make your IRA the policy beneficiary. When the insured dies, your IRA receives the proceeds of the insurance payout.
Things to Know Before Investing
- All expenses associated with the investment must be paid using the funds in your IRA account. All revenue must go back to the IRA account.
- The investment is made by the IRA – not you.
- It is a good idea to invest in multiple “lives.”
- The purchase should not constitute a prohibited transaction.
An IRA Club Self Directed IRA may make almost any investment for your future. The IRA Club provides our members with a no cost review to help you avoid making one of the few prohibited transactions.