Our group never liked the idea of your character being killed late in the game and having to start all over again.
Taking a page out of the Relic game, when your character is killed, you now have a choice of starting a new character or placing your killed character in the graveyard. You still place all objects and followers on the space you are killed in as usual, but keep everything else(wanted posters, fate, spells, and all strength and craft tokens).
You must miss your next turn when killed while the reaper gives you new life. "I have plans for you!" Regain your lives back up to your starting life value.
So the drawback to being killed would be missing your next turn and having to go pick up all your stuff again. This option can keep you in the late game for sure!
Thoughts?