United of Omaha How to take an old lady's money Omaha, Nebraska

In October of 1993 my mother took out a life insurance policy for $5000 with United of Omaha.  Her premium payment was $36.75.  She was 73 years old at the time. She faithfully paid monthly until November of 2009.  When her payments stopped  a letter was sent  stating the following..."We have not received your payment due November 02, 2009. Your coverage is being continued under the Extended Insurance provision."  It goes on to say this will cover her until February 4, 2013.  She passed away April 13 of 2013.  I have no way to verify that this letter was sent.  I am the beneficiary of the policy and was not contacted when the payments stopped but, have received a letter saying basically there are no benefits coming.  She paid in over $7000 and at 89 her mind was slipping and did not understand much of what she was doing.  The company tripled her payments and paid themselves all of the funds she paid to them.  How is this legal much less morally right.