Yes , it does seem families were compensated some what for the loss of a family killed in combat .
I own several original documents from a crew member of the U-438 such as the letter to his parents that he was missing in the north Atlanik , a letter stating he was killed in the North Atlantik , his offical death certificate and a small letter from the Kommandierender Admiral der Unterseeboote Abfindungsabteilung u-Boote stating that his parents will receive 100RM Kapitulantenhandgeld for his service . If you like I could email you a copy of this document if you like .
I do believe that at least in the ubootwaffe some compensation was given , if you thing 100 RM is much compensation for the loss of a family member ! I do not know if this was true through out the other branches of the German military , or if was even done during the entire war time period . It took a whole year from the time that this crewmember died before his family received this document stating they will receive the 100 RM ! As the war went on and losses mounted I doubt Germany could afford to give out 100 RM to every family and the amount of paper work generated would have been huge from 1944 till the end of the war !