An elderly couple who have been paying life insurance for more than 23 years have been left devastated after they were told they wouldn't be paid out unless one of them dies soon.

George and Irene Nesbitt, both 89, have paid more than $31,000 in life insurance - but were told the money would expire if one of them didn't die in the next six weeks.

Speaking with A Current Affair, the couple is in distress admitting they only have a few hundred dollars to their name.

And they're worried their children will have to pick up the bill.

"I wanted to cover our own funeral, I didn't want (our children) to lay out anything," Mrs Nesbitt said.

However, the Nesbitts' insurance provider Colonial recently told their policy would expire before they turned 90.

"I didn't realise that I didn't get any money, I just thought it meant their cover, I had to stop paying at that age.

'I think its disgusting, I never would have paid into an insurance like that, I would have cut it off," she said.

The couple are struggling to save their fortnightly $1334 pension, while still being forced to pay $161 a month on their worthless life insurance until it expires on January 17.

The Nesbitts were promised an $8000 payout but face losing that when one of the couple turns 90 in six weeks.

"I didn't look at that clause... I didn't realise that meant you didn't get any money," she said.

The couple's daughter Diane said it is heartbreaking to watch her frail parents worry over how they will pay for their own deaths.

"They're 89 - both of them - and they've worked hard all their life... all they've cared about is that we don't have to worry about their funeral costs," Diane said.

"This breaks my heart for my parents."

Colonial Insurance said in a statement they were sorry to hear of the couple's dissatisfaction but was unable to extend its cover on the Nesbitts' policy.