Should we continue paying?

My parents policies are among the 3,052 polices that were voted upon to be kept. It really didn’t matter how my parents voted. The decision to keep, to sell, or dispose of the policy was said to have been determined by the majority vote of the investors owning each policy. I am not aware if any of the actual voting results were ever made available to any investor. Last fall, my parents started receiving annual administration fee invoices ranging from around $177 to $190. The admin fee consists of $175 per investor and the investor’s pro-rata portion of a $195 policy fee. If you divide the $195 by the pro-rata share shown on your invoice you may get a rough estimate of the number of investors owning this policy assuming each investor purchased a similar percentage. So far, my parents have received their premium round 1 invoices for seven policies, all due before the end of June 2007 totaling just over $35,000. The invoice specifies a definite payment due date, a definite payment amount, and a definite period of time that the payment represents (To include reimbursement of payments made on the investors’ behalf by the receiver). It also lists an estimated annual premium payment that the investor must make on future payments. To me, I feel that there are problems in two areas. First, the amount of Premium Payment Round 1 for the payment period stated can only be achieved if all investors make their payments. I am almost certain that some investors will not be able to pay these expenses and others may decide not to chance “throwing good money after bad” and forfeit their interest in the policies. If the receiver or VSI had provided information on the number of investors for each policy and the percentage of the vote to keep, investors thinking about trying to save at least part of their investment would have been able to estimate the probable cost of the second round payment and plan accordingly. I also have a problem with the estimated annual premium as shown. All of my parents’ policies are universal life policies, where the annual premiums go up each year. The estimated annual premium costs for several years forward needs to be provided so that a more accurate idea of future money needs can be computed.