Google has said data recorded by the device would be bound by its current privacy policy, meaning it could be collected in an anonymous way and the company would hold data about specific individuals only if they explicitly agree to it, the same as with smartphone-related data.
If the policy is more than 20 years old, it's almost certainly a whole life policy, meaning it builds up cash value and can be borrowed against. (This is what reeled in your parents.)Another popular variation was the endowment policy, which pays face value at a specified age, such as 65.