I was named as the executor in my dads will. I was not formally adopted but i was raised by my parents and i have their last name.

An executor usually does not deal with life insurance payouts - those are considered a contract between the insurance company and the insured, and the named beneficiary will be paid directly once they fill out the necessary claim forms.  If his wife has passed away, the insurance company will look to see whether your father named an alternate beneficiary - if so, they will pay out to that person.  If not, pay out depends on the insurance company's policy, but they probably will pay your father's estate.  Then, as executor of the estate (once you are appointed by the probate court), you would distribute these funds in accordance with your father's Will.  If his Will gives funds to his stepsons, then they are entitled.  If he does not, they are not because they are not considered to be his children.  The same applies to you, since you were not adopted.