The federal government is right to sue the family of the San Bernardino shooter from collecting the life insurance payments. As far as I am concerned that is now blood money and the family does not have a right to it. Once you die in the act of committing mass murder/terrorism, that voids any sort of insurance benefits in the result of your death.
Those people did a horrible thing but at the end of the day they were still people who had families that need to survive. Those family members were not involved with the shooting in any form or fashion and they deserve to receive the money from the death of their loved ones who once provided for them. They are not profiting off of the deaths of others, they are just getting the insurance that was already paid for.
I strongly believe that terrorist's or other murderers families should not receive life insurance payments. Often times those who kill others will also kill themselves. Allowing their families to receive payments would be in a sense rewarding the family for their relatives bad behavior. Since the person would no longer be able to suffer for what they had done, I feel that somebody should. This would give the victim's family some relief in knowing that their is still a punishment for the crime. If a person shoots up a school and kills 7 children and then themselves, I really don't think their family should be rewarded for that crime.
The family of one of the San Bernardino shooters should not be able to collect the life insurance payments. The policy was taken out a short time before the events, indicating the shooter was on a suicide mission. This should be considered a terrorist act, and his beneficiaries should not receive a financial windfall.