They wanted to use it to pay off the Florida home.

True I was thinking that if ML can't afford the house with just her social security check then she should just move in with us and cash out the house to pay for part of the mother in law suit and living expenses.

So it's not 100% they don't like sister in law just that since we will be paying half the life insurance and on top of that my mother in-laws future social security/savings won't be able to afford her daily needs. So we're taking that responsibility. Sister in-law is unemployed and doesn't want to be employed so can't help. My only concern is that her husband also unemployed will convince her to go after it. I don't mind her kids getting the money to live a better life. Though I know the husband just will take it because everything is about him first.

Also even if we don't do the life insurance part we would have paid for his mother's living expenses regardless. Though I would prefer to just make a mother in law suit in our backyard for her. So I think she just wants independence and is why she wants us to do the life insurance and give the extras 200 a month to cover her living cost.

No we don't have to be involved but my husband wants to be involved. I am ok with it if it won't harm us or be a bigger problem in the future. Like can my sister in law come after the inheritance if she gets nothing and is getting a loan or paying outright better is what I really should have said at the end. Also even though we're in these deals we will just be giving them the money.