The Safety of insurance funds investment relates to the sustainable and healthy development of insurance industry. The intension and extension of insurance funds investment and legal risk require to be clarified and cleared. Currently，the risk of insurance funds investment mainly present as：systemically legal risk；legal risk caused by inherent shortcomings or illogicality of trade structure；legal risk caused by unscientific and unreasonable arrangement of trading conditions or transaction agreement；litigation and arbitration risk and civil，administrative or criminal liability risks resulting from improper trading operations or performance.Thus it is necessary that different targeted preventive measures are taken to the specific legal risk.