This insurance part of your question is too hard for anyone other than a Kansas attorney (assuming that your state, Kansas, was also the state of residence of the deceased lady at the time of her death and is also the state whose law is applicable to the insurance policy). The difficulty exists because states have different laws on that issue, and it is not an easy lookup. Depending on Kansas law, the rightful heir to the insurance proceeds might be either the heirs of the deceased son or the estate of the deceased policy holder.
The house is different. The house goes to the heirs of the deceased son.
This answer must not be relied on as legal advice for the reasons posted here: http://mcgyverdisclaimer.blogspot.com . And I am not your attorney.
In Kansas, insurance proceeds payable to a beneficiary who has died before the death of the insured are payable to the insured's estate. This requires the opening of a probate estate, and the disposition of the proceeds will be governed by the insured's will, if any. You must hire an attorney to open a probate estate in Kansas.