"but I dont see anything reflected in this IRA account."
It would not be reflected in the cash balance.
"I thought it odd that his 60k thats been in there for 5 years hasnt grown at all"
If it's not, at the least, put into a money market pool, it has no way of growing. It's basically "under the mattress."
"if he pulls out, hes lost the 22k hes paid into this."
Someone should be tracking the amounts, as he has post-tax basis. If anything in that IRA "pays off" that will reduce the tax hit pro rata. And of course, he should get out of this.
When Aids first came about, you could buy the owner's life insurance = Viaticals. This seems to be like the same concept: buy it from the owner, bundle it and flip it to these investors.I see they assume "65 and 13 years of Life Expectancy" and viaticals are based on Terminally ill.
Whole life is the worst investment around, of course; even on someone else's life. Well, "investment" is not the right word at all.
We have only had self-directed IRAs. Okay, I looked at their FAQ. Think of buying a rental house using your IRA; everything is "inside" or sheltered by the IRA, but nothing about the house is reflected in the IRA statements.
I see they have three "accounts" for your investor: Subscription escrow (gets the incoming funds), the Policy Trust, and Premium Reserve. Yep here is it:
"Premium Reserve Account - once the investor selects their policy or policies, the Trustee transfers their funds from the Subscription Escrow Account to secure their purchase and funds the Premium Reserve Account, which is administered by UMB as Trustee. The Trustee makes certain that all required premiums are paid from the Premium Reserve Account."
All the money he's been paying may simply have had to cover Premiums for the over-aged people who did not die on time.
You can get the statements for everything. Then, get him out of this.
"Level Up" is a gaming function, not a real life function.