The Darkness Between Stars
It happens, and when it does, do not be discouraged. There are many campaigns that will set campaigns on stun and keep players alive, regardless of the cost to story. In situations like this, I feel some of the risk and fun is lost from the game world. I don’t plan killer encounters, but I do design at least 1 or 2 every level that should test your mettle. Sometimes players make some very bad decisions, sometimes they walk away with a tale to tell, and other times their story ends.
I will intervene if I feel that I have made an encounter a little unbalanced, or if the whole party is at risk to death.
When a player dies the world and story continue. Creating a replacement character is easy and a great way to try new things. Good luck getting your gear back from the survivors. The DM will help you select gear for new characters depending on their level and power level of the remaining party members.
New characters are created at the level of the group. You get the allotted amount of gold to make purchases as needed.