Cazmyr
Refugee
I like that and you could loose one point of attribute for each difficulty level.The comments about perks being temporarily unavailable when attributes get lowered made me think that a temporary (e.g. one game-day) debuff to all attributes might be a good death penalty.
It would be reasonably noob-friendly, since beginning characters won't have much to lose, so dying in the first day or two won't be too bad, but it would be a significant penalty to established characters who will lose higher level perks temporarily on death.
So insane would be 5 points for one game day.