Irreovicable insurance policy with a loan against it since 1992?

Question

She is 90 yrs. old with dementia, however she is physically well. Has an insurance policy with a loan against it. The cash value right now is only worth half due to the loan. It is depleting everyday. It fluctuates based on the market also. Is it wise to surrender it and take a hit by IRS now for 5 years from now you may have a "o" balance. It seems this policy was not worth anything, only to the agent who made her buy a policy and place a loan against it. I am the only daughter and I want to correct this if possible. But how?

Answer 1

Um, irrevocable means you can't cancel it. The whole point of it is, if the policy owner becomes incompetant (like has happened), someone with POA can't change it.  

Sorry.  This is how she wanted it, before the dementia set in.