Why do you say he gets the house and her insurance? If she is still alive, she should be able to draft a new will and change the beneficiaries on her life insurance. Of course, if she wants her husband to get the house and benefits, that's the end of the story.
I know in some states, it's NOT an option - in NY for instance, 1/3rd of the house MUST go to the spouce - and I know there are some laws RE Life Insurance that the spouce has to get some percentage (think 1/2) unless the spouce signs off that they don't want it