Death benefit with super

My brother in law recently committed suicide and it looks like he was covered with his super for this according to the agent I've been dealing with. I'm not a beneficiary, I'm just the nominated person by the family so they don't have to deal with all the stuff involved with the details of his dying etc. As he has no dependants or partner kids etc, it looks like my mother in law is the next beneficiary so I'm trying to help her get things started. She's literally about to retire next week. Does anyone know if the death benefit is classified as income etc when it's insurance from your super? There's also a house involved. If she chooses to use the money to pay off the loan, is that a good idea for her? I'm at a bit of a loss with just trying to help her figure out her options. We are still reeling from the situation