A few things being slightly mixed up here.
First, the issue is not really one about indemnification. It's about liability (whether it exists) and insurance (whether you have cover for the liability if it exists).
Second, I don't see that it really makes much difference whether you rent or own, unless it transpires that the cause of the accident was a problem with the aeroplane rather than the pilot.
Third, I don't think it makes any difference (as regards liability) whether or not you are fatally injured. A big claim could affect your family finances whether you survive or not.
Fourth, there's no point limiting the issue to passengers. Same issue applies if you kill some poor soul on the ground or in another aircraft.
In fact, it doesn't really make sense to limit the issue to aircraft. Same issues apply if you drive your car negligently; ski negligently or whatever.
Sensible insurance; try your human best to take care; understand that imaginative lawyers can always think of liability scenarios which buy them attention, column inches in the press or fees; and, then live life with a sense of mortality for you and others.