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You mentioned an annuity but not what the specifics of the annuity are. I agree that non-immediate annuities are usually a pretty poor choice, but with interest rates dropping like a rock for the last ten years some annuities have actually done pretty well despite the odds against them. Heck, even a broken clock is right twice a day, they could have gotten lucky and cashing it out early could cost them a lot more than just the surrender charge like some sort of guaranteed minimum return if they hold it a certain amount of time. Be sure to understand all the details.

You also didn't mention how long the term of the term of the life insurance policy goes for or if it is a level term policy there they cost and benefit always remain the same. It could make a difference if it lasts just a few more years or for a long time.

To me the question of keeping the policies or not really depends on what would happen if one of your parents does outlive the other by a long time and if having the premiums to spend now would make their life significantly better. Without knowing many of their details, my gut feel is that the $30K benifit amount may not make a lot of differene someday, but having an extra $3,200 to spend each you might make their life much more pleasant now if they don't have a lot of other assets.


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