The mod Distinguished Service used to have its own death mechanic before death was activated in the main game. It was nice because when a companion died, you got a big popup telling you so, and you had a choice of sending their gear back to their family for a morale boost or you could keep it and take a morale loss. It lessened the blow of losing your companion a little when you could at least get back the Noble Longbow you just bought for him right before the battle