In Dead Island, it notifies you that you lost a certain amount of money when you die. How much is lost exactly?
The cash penalty for death is 10% of total money, however, if you're playing as Xian Mei, this can be lessened (by up to -45%) with the life insurance skill.
Source: Modified the
C:/.../Steam/steamapps/common/dead island/DI/Data0.pak/Skills file and tested the
<prop n="PenaltyOnDeath" v="1"/> value;
v="2" increases it to 20%, whereas
v="0" removes the penalty.
In Dead Island, when you die, you lose 10% of your money.