There is a slight misunderstanding in the premise of your first question. On the FBAR, you do not just report the "amount invested" (your principal). You must report the Maximum Account Value during the calendar year.
Whether you need to report a life insurance policy depends entirely on the type of policy you have.
- Term Life Insurance: Generally no. Since term life has no "cash value" (it’s just a payout if you pass away), it is not considered a financial account for FBAR purposes.
- Whole/Universal/Permanent Life: Yes. If the policy has a cash surrender value, it is reportable.
If your cash surrender amount is more than $10,000, it must be reported on your return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
