If I were you I would want to know if there's an affair. It lets you know exactly what you're dealing with and let's you know how much you have to protect yourself right now. Will H find out about the company phone records? If his family did this, would they keep their mouths shut or would they implicate you?
If I agreed to anything at this point, it would be cancelling the life insurance as a non-necessity. Health insurance is too important. It depends if this is a real financial crisis or one he is making up.
I will try to send someone over to your thread who might have better advice about your legal situation.
