Who we pay out the lump sum to on death depends on how you set up your policy.
If you're the policy owner and also the person insured then the money will go to your estate. If you and someone else are both policy owners and also insured the money will go to the surviving policy owner. If someone else owns your policy and you are the person insured the money will go to them when you die.
If you've put the policy in trust then the money will go to the trustees, and if you've given it away (by assigning it to someone else), it'll go to the new owners.
More on Life Insurance claims