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Life Insurance over 90?

Our parents are 91 and 87. Their budget is thin but they have spent several years together in assisted living (Brookdale). Dad has managed to negotiate his way out of/around prior monthly fee increases but I don't think that's going to work this year. They are facing a $675 jump in the monthly rent and something has to give. My brother has called to some other facilities and they are all around $2,000/mo. *more* expensive than their current facility.


Unfortunately the only budget item I can find with any serious wiggle room is insurance. They are paying $523/mo. on Medicare, Medicare Advantage and Medicare Part G. They are paying $637/mo. on life insurance. The only question I have is for the Part G and whether or not it can be eliminated. Other than that, it's all about the life insurance.


Dad is a Korean War vet and can be interred at no cost, including Mom. But the funeral/memorial service and related expenses are primarily what they are maintaining insurance for. It is true that we don't want their deaths to create financial turmoil for us (my brother and I) but I don't see how they can continue paying these premiums.


Is their any way to cash out these policies and set that money aside? Dad is covered for $20,000, Mom for $50,000. Mom's policy is a Universal Life (TransAce) through TransAmerica and is currently $372/mo.


Mom's policy has a *negative* cash value, in spite of having paid in over $34,000 in premiums. But is their any way to surrender this policy and get at least the premium back out of it? Setting that amount aside would more than cover burial/funeral expenses.


Dad's policy is with United of Omaha and is $265/mo. I don't have the policy at hand but would also like to surrender it.


Looking for any advice from people who are familiar with life insurance or who have gone through similar decisions in the past. Thanks!



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