The contract should no longer be valid once a person passes away, period.
Should the mortgage company cancel the mortgage on the home and give the family the property because the person passed away? Should credit card companies forgive all debt? At what point does this line you’re drawing waver?
The estate is still liable for all debts including any ongoing ones that the deceased is contractually obligated to pay.
kingu is quite correct. Where do you draw the line?
The bottom line is a contract is a contract. If the company chooses to cancel the contract upon proof of death that’s good. But I don’t believe it is required to under law.