My style of gamemastering is about adventures and characters. My player is focused on her character. If character dies adventure dies with it. You can roll new character and continue with small briefing but my player wouldn't like that.
Tough, someone might think. But that's the way it is.
Starting LotFP I was a bit nervous of character death. My player is not that interested in fantasy adventuring (weird or not) so I was afraid that if her character dies she looses interest. Tough you might think but I want to play weird adventures.
So I had to find a solution.
When character should be dead something happens. Here's an example from Star Wars The Empire Strikes Back (I hope copyright people don't take the video off, but it's the "wumpa" scene where Luke Skywalker looses consciousness (character dies rules wise).
The idea is when you die, something bad happens. Luke is captured in monsters cave in a really bad shape. He manages to escape but is in low hit points.
When character should die according to the rules story doesn't have to end. You get a little side-quest or additional scene. In top of that there should be a penalty for dying. Decreasing level is too much trouble so I decided character doesn't loose levels but looses ½ of his experience points.
I also use rules for negative hit points (Death and Dismemberment chart by Trollsmyth) where you might even loose your limb! I will blog about that later. (Note! Negative hit points are modifier to roll. For example from a hit dealing damage what decreases hit points to -5 roll 2d6-5 and then check the chart. More negative HP you have more serious the blow is! If you had -5 hit points already and suffer 2 damage you are at -7 and roll 2d6-7 this time and consult the chart!)
So if you are level 7 (1000 xp per level for simplicity) and had 7500 xp when you "resurrect" from the dead (resurrect is wrong term, but survive as in above video example) you only have 3750 xp left. I think that is reasonable penalty. If you are stupid (or unlucky) to die a lot your level progression is slowed down a lot.
This might be wimpy for TRVE KVLT OSR MASTERS but it's a good solution for our needs. Sue me for being wimpy Referee.