Death is a significant issue for roleplaying. People become extremely attached to their characters and there are many ways that people try and deal with this. Some take a hard line stance that you should just make a new character, which severs the attachment to the story for many and possibly significant emotional distress. Meanwhile others allow you to come back from death by paying with website points or other method which undermines all tension the game provides. Due to the high legality of our combat this issue is extremely important.
My solution to this is that death will need to be extremely devastating while also being something that never has to be the end, the game needs to continue when you die but things really should never be as they were before. So there is life after death.
This will be a very unique system, as the nature and ramifications of your death can mean many different things depending on if your character worships any gods, has any deals with otherworldly entities or happens to be found by some sort of necromancer, so it should be approached much like magic and the environment.
When you die, your soul separates from your body weather your character believes in souls or not and if they had a patron deity, the deity or a representative is free to decide on what happens to that. Perhaps reincarnation, hell, heaven or whatever unique system that deity has set up (deities can be players too). If that isn’t the case, then you will have a harder time, you will be a ghost, wandering the planet with limited ability to interact with your surroundings, but with enough will or especially perceptive characters it is possible. Beyond that you have those who might try to use your soul as a source of power or a demon might try to consume it. Perhaps with enough practice you might be able to merge with an inanimate object through your own will or find some other way of clawing your way back to life. Maybe your deity is the type that offers immortality. Who knows, its player controlled, it could be almost anything.