Chris Roberts has told earlier that death will not be something which can be easily forgotten. Death is death. Permanently. At least in the reality. And Star Citizen wants to make death important but of course somehow manage that the fun of playing (and dying) will not be lost. How to do it?
In the end, the team decided to run counter to the standard FPS mechanics of regenerating health and instantly respawning on death to make every fight a calculated decision that can have ramifications that impact your character and place in the ‘Verse.
You can read the whole long explication at the official site.
But for example health will be limb-based with many degrees of severity. So shooting you to the leg will make a complication and shooting both your legs could make you only crawling. There are 4 levels of severity:
Normal – You are fit and ready to fight!
Hurt – Hurt limbs can cause problems with aiming, walking, or other functions that would require that limb. Limbs can get hurt from being too close to an electric spark, flame, outer explosion, or being hit with objects in the environment. Light Armored players can quickly be hurt.
Damaged – Damaged limbs are useless and the player cannot use them unless they get them patched up in the field or taken to a mobile trauma system (see: Healing). This is the state right after the hurt phase, where the pain is so severe to the player, that no matter what limb is damaged, they will have a hard time being mobile. If one of their legs are damaged, they fall to the ground and crawl.
Ruined – Limbs in this phase are essentially gone. The player will most likely bleed out at this state. This is usually something as bad as your arm being blown off. If the ruined limb is an arm then you will not be able to aim any weapons that require it. For example two handed weapons require both arms to be outside the Ruined state. Screen effects are also present to simulate the pain the player is enduring in this state. If the player is able to be healed by a player with medical equipment, the limb is completely gone and cannot be used, but the player can at least move around and continue the fight (if they have their legs, that is!)
It will be also hard to one shot someone. Because death counts. Therefore you will receive heavy limb damage and your friend could drag you out of the fire fight.
There are going to be several medical devices to heal you.
And you can also bleed out! So take care of yourself.
There is much more to read. Just click the link below!