Updated: Oct 15, 2020
This is a strange topic at times, depending on who you're talking to.
Life insurance came out FIRST, way before Senator William Roth created an account after his namesake. https://en.wikipedia.org/wiki/William_Roth
What is it that William Roth created? What he created was an account classification that mirrored life insurance, but has several distinctions:
1 - You can't have one if you earn too much money.
For 2019, if you earn more than $137,000 as a single person, you can't contribute to a Roth. If you earn more than $203,000 with married filing jointly, then you can't contribute to a Roth for either you or your spouse.
- Life insurance doesn't have that kind of restriction!
2 - You are limited on the amount