Why is it you don't die in a MMO? Easy, because companies want people to keep playing.
Still, death is an important part of a game. In most games you die and spawn back without any loss. In EVE-online they probably have the most brutal way of dying. Your ship is lost including the modules and the cargo. If you have insurance you will get a part of the cost of the ship back related to the amount of insurance you paid. A part of the modules and cargo will be jettisoned in a container. If you have friends nearby, they can pickup any valuables. Otherwise you will lose it all. If your ship is destroyed, you will eject in a pod. If you are lucky you can dock in that pod. If not, your pod will be destroyed. If you don't have an adequate clone upgrade, you will lose skillpoints. So this type of death is somewhat different from other games where you don't have to think and go in guns blazing.
Star Citizen will have an immersive experience. Dying is a part of that. You can read all about it here: https://robertsspaceindustries.com/comm-link/transmission/12879-Death-Of-A-Spaceman
You can also watch an interesting video if you don't want to browse the words: http://www.youtube.com/watch?v=zEQpSqDDSHY
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