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I'm very sorry to hear about your loss. Before you sign anything, you should speak to an attorney in your area that handles probate law. Many attorneys can be found on avvo.com and a lot offer free initial consultations. Take the paperwork that you're being asked to sign with you and have them review it. Do not sign anything that you are not completely sure you understand and agree to.
If your father's life insurance policy didn't have a contingent beneficiary on it, then the insurance company will issue the funds to your father's estate to be distributed along with the estate.
Based on the limited facts you've presented, I do not see any reason why your Uncle would be entitled to any of the insurance proceeds, unless he was mentioned in your father's will.
However, your best chance for getting the most accurate answer is to consult an attorney in person in your own area and tell the m the full and complete story.