Depending on the country where you live, the laws can be vastly different, since in most countries the debts you may have with the government are inherited in the case of your demise, however any debt with a private entity is immediately forgiven, it is because of this many companies and businesses refuse to give loans to the elderly and to the sick, since they do not want to lose money in the case of their death, however it seems that now insurance companies are taking part of that risk by giving insurance to those people so those businesses can offer them loans.
I don't think any loans from private entities/companies/financial institutions are forgiven in case of the borrower's demise. Most companies and institutions wouldn't give loans without collateral, which should be something worth more than the value of the loan so that it can be liquidated in case the loan defaults because they barely care about what happens in someone's life; all they need is their money, and they make sure they get it because you can't run a company if you keep forgiving people the loans you have given them if they die, you will need to have a system which doesn't let you lose money if you are in such a business.
This is also why it is not easy to get a loan: You can barely find a company, both private and government-funded, that will give loans without asking for valid collateral. If you don't have anything you can keep with them, you barely stand a chance.