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Mother in Law's life insurance

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Hi,

I was wondering if anyone had heard of something like this before.

My mother-in-law is 63 and she has a line of credit against her house, not a mortgage, for about $300,000 and the house is worth maybe $750,000. She is adamant that she has life insurance that will pay off this debt, even if she lives to be 92 and dies in her sleep.

We have been telling her that this is not likely, otherwise everyone would be doing this, but she won't listen. She also refuses to let anyone look at the policy to read the small print.

Has anyone heard of such a thing?

Is there an age where someone becomes uninsurable?

Thanks!

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