Why is my Granny paying more in premiums than the actual amount of coverage?

My grandmother has been $368.00 a yaer for life insurance on herself and the policy will only payout $2,000.00 upon her death. She has been paying this amount since November 16, 1989. I just reviewed her policies last night. She has been paying half of the mentioned above amount for life insurance for her son that's 52 since the same amount of time and he has only $1,000.00 worth of burial coverage. My granny is now 92 years old. I suggested that she stops paying the insurance company the monthly premiums and start a savings account strictly for burial purposes. What other options does my grandmother have? The cash value on her policy is $564.00 and much less for my uncle. How do I help my granny? No one at the insurance company will discuss questions we have and her agents change every month or two so none of them can answer our questions or they make promises to follow up and they don't and then the agents change. What do we do?

Very concerned,
De Anna Carter