Insurance is important because the act of getting correctly insured is a major step in the validation or otherwise of any given commercial activity (like commercial aviation). Insurers do not generally insure non-compliant activity (not implying anything whatsoever about this accident).
The employers liability CH is referring to is called Death in Service Benefit, and it will depend on the employer's terms and conditions of employment, which will be almost infinitely variable. However, a very frequent and standard clause is any payment made in the first two years of employment will be a single, not very big, lump sum. What Cardiff City have in place nobody other than the employers and employees of said outfit will know, but the suggestion that his family will benefit is somewhat fanciful. He was single and childless, was he not not? That means he has no dependents to pay out too. Death in Service schemes do not normally pay out to parents/siblings, they are designed to protect dependents.
I agree all this is speculative and not the most important part of the flight safety discussion (albeit, it is significant in the context of licensing), so might I suggest, people who don't know about insurance and associated issues, stop posting (guessing) about the subject. That way we can stick to the flying.