If the beneficiary of a life insurance policy is dead, who gets the money when the insured dies, his wife or his son?

If no contingent beneficiary was named then the insurance proceeds are paid into the estate.  The beneficiary of his Will would inherit.  If the person died without a Will, then they died "intestate".  In that case the intestacy laws of the state where the deceased legally resided at he time of his death would prevail.  Typically, it is to the surviving spouse and children in a 1/3 / 2/3 split, respectively. 

Right now you should consult with an attorney as to applicable state law.