Whew, you are in a tough spot. I’m guessing that this was a term life insurance policy — and the “term” likely 20 years– just ran out. There is no savings or investment feature in a term life policy. There is no cash surrender value. It is just “sunk costs.” You pay the premium for that year’s coverage. Forget previous years’ payments. They are like old utility bills — you were kept warm for that winter!
Now, I don’t mean to be morbid but if your husband currently has cancer, I would think you would want to keep this life insurance in force. He certainly couldn’t get life insurance in force. So think of this year’s payments –which seem to total about $8,000 — as buying $200,000 of life insurance for $8.000– for one year.
I hope you can afford to keep paying the premiums — and that it’s a waste of money! But consider your entire financial situation. If he does pass within a few years, will you lose his retirement benefits, for example? this money could make up the difference.