When Kim Garbutt's estranged husband, Craig, died in 2008, his family expected to receive more than $208,000 in death benefits associated with his superannuation fund.

Thirteen days later, Ms Garbutt received a cheque from AMP for $25.09.

"When the account arrived I was a bit dumbfounded," she told 7.30.

"Sometime after that I spoke to them and they were saying basically the account had run dry.

"They went, 'So sad that he's died but too bad, the account's got no money in it'."

Ms Garbutt eventually discovered that five months before Craig's death, the account was $212 in arrears and AMP had cancelled Craig's policy.

Monthly premiums paid for six years

Kim Garbutt's husband, Craig. ( Supplied: Kim Garbutt )

Craig, the father of Ms Garbutt's two children, suffered from severe alcoholism and died aged just 39 — only a year after the couple married.

"Craig was super smart … he was funny, he liked to dress well," Ms Garbutt said.

"He wasn't ostentatious, he wasn't bombastic, he was just a nice, friendly guy.

"He was well-liked, he was well-loved."

She said Craig had sought help, including attending a rehab centre, but had ultimately been unable to kick his addiction.

"We were living on gifts," Ms Garbutt said.

"Craig's business was bankrupt, he was in debt to what we think is $300,000 to $400,000 to maybe six or seven creditors. Phones had been cut off."

Before his death, Craig had been living on friends' couches and out of his car.

Ms Garbutt's investigations found Craig had rolled over $1,621.93 into the super account from his former fund in 2003, but within just five weeks, that balance had dropped to $1,433.77 — after he was slugged more than $188.16 in fees and insurance premiums.

Craig didn't contribute a cent more to the account after his initial $1,621.93 contribution but continued to pay monthly death benefit premiums for six years.

These premiums grew considerably over this period, including a jump of twice the rate of inflation in one year.

Despite Craig having made no further contributions to the fund, AMP continued to deduct fees and charges — some were itemised but many were hidden.

AMP warned Craig of 'risk of losing his valuable insurance'

Kim Garbutt says she "begged and pleaded" with AMP to check where the money had gone. ( ABC News )

AMP later told Ms Garbutt they had written to Craig before his death warning him the fund was almost empty and would be cancelled.

They told her there was nothing more they could do.

Ms Garbutt said AMP refused to engage with her on compassionate grounds, and since Craig's death she has been unsuccessfully battling the insurance giant for specific details about his superannuation and insurance policies.

AMP wrote to Craig several months before his death. ( ABC News )

Ms Garbutt said while AMP had written to her husband in the months before his death, he was seriously unwell, not opening mail and for the most part and had no fixed address.

An AMP spokeswoman said the company "strongly rejects" any suggestion Ms Garbutt had not been kept informed.

"At no time were we informed that [Craig] was unwell, and we corresponded with him as early as seven months before his death that he was at risk of losing his valuable insurance," an AMP spokeswoman said.

"We do allow customers to reinstate lapsed policies based on medical evidence, however we do not allow this where the reinstatement is due to the customer now wishing to claim."

The AMP spokeswoman said the group paid, "95 per cent of all claims" and paying claims on lapsed policies could lead to, "all customers having to pay increased premiums".

Ms Garbutt said she "begged and pleaded" with AMP to check where the money had gone but got nowhere with the superannuation giant.

"It was, 'Nope, we told Craig it was going to be cancelled'," she said.

"I went, 'Craig wasn't functioning, he wouldn't have read the letters'."