I think it's extremely unlikely a lycoming piston engine will loose all power in the blink of an eye. Much more likely to lose a mag or drop a valve, splutter and cough and quit slowly.
So. . I try not to give the students the impression the engine is going to quit on them without them being fast enough to react.
From the hover, if you roll the throttle off (really slowly for the jumpy students) you can teach them to keep the 'all important' attitude with the cyclic keep straight with the pedals and encourage them that raising the lever will be the natural thing to do should they be descending to fast. .
It is also completely 'do-able' by a low ability student. . (helping their confidence)
Am I too soft. .?