Life Insurance Claim Denied after Mother Dies of Cancer

Posted on Jul 15, 2009

Recently Good Morning America broke a story on a mother who died after a nine month colon cancer battle.  While working as an employee at a 7-Eleven store, Sarwara Faruque bought and paid for a $45,500 life insurance policy.  In the event of her untimely death, she wanted her children to have sufficient money for college.  After her death, her children applied for her mother's life insurance proceeds.  To their awe, their life insurance claim was denied based on the fact that their mother missed a few monthly payments while she lay sick in a hospital bed.  Because of these missed payments, the life insurance policy had been cancelled months before.

After going back and forth for nine months with the insurance company and getting nowhere, the family decided to hire a lawyer.

The lawyer was able to obtain a copy of the policy and determined that the policy contained a clause that in the event the insured is sick and unable to work due to a medical condition, the monthly premiums would not have to be paid and the policy would remain in effect.

Less than a week later, the children received word that their mother's life insurance claim had been approved. 

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