Raising the Dead
When a character’s HP hits 0, or an enemy lands a lethal blow, they are dead, indicated by a skull replacing their portrait. There are two types of spells that can raise them. One is a lesser version, Resurrection, usable with items such as Caduceus of Life, which does not work on every race/class and cannot be used to raise anyone who has been dead for more than 7 days. The other is the Raise Dead spell which seems to work for everyone, including some NPCs, though it will sometimes fail, even when cast with maximum power.
The consequence of being raised is a permanent loss of that character’s CON stat. It seems like it is always -10. When that character levels up again they usually get a good amount of it back, but not every point. It isn’t too bad as long as that character is not constantly dying, but deaths can add up. If you want to avoid this consequence, you can use the tried and true method of saving frequently and reloading if a character dies.
As a side note, the DES (Destiny) stat has a random chance to save a character from a Lethal Blow (Skill) that would have otherwise killed them, though it consumes 1 DES stat point for every rescue.