It is the right of the charitable person to give their money as they see fit. It is not our right to tell them they cannot dontate to this cause!
I didn't see anywhere that said the insurance was medicaid or medicare. It is most likely the insurance used was privately paid for by the husband...if so, why then shouldn't he be allowed to collect on it?
Even if she was on medicaid I would be ok with investing in life. So much of our taxes dollars are spent without giving us a choice on death.