I can think of many possibilities.
a) Ressurection/Raise Dead - Person's back. Not much else to this.
b) Reincarnation - Person's back in a new body. (Ever had someone be reincarnated as something besides a humanoid?)
c) Rip up character sheet and tell them to make a new character.
Has anyone done anything more interesting, like run the character as a ghost, or perhaps have them travel as a petitioner in the outer planes, trying to convince a god to let them have their body back?
Just curious how you handle this concept of death.