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TMF Owl writes:

<<I understand there is a rule that no portion of a Roth IRA may be invested in life insurance contracts.>>

That is correct. Life insurance along with collectibles like art, antiques, gems,etc, and investments in prohibited transactions like the purchase of stock in a personally owned company are not allowed in an IRA.

<<Suppose a company whose stock you buy owns part interest in an insurance company?

In this regard, should people who have Roth IRAs be concerned about every investment made, no matter how small, by the (prospective) companies they own in the Roth?>>

That's not an investment in life insurance policies, it's an investment in the stock of a company that holds an interest in a company that markets life insurance. Whether ownership in the life insurance company is held directly or indirectly through another company makes no difference. The investment is in the securities of that company, not the life insurance coverage. Thus, it's a permissible investment.

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