Yes, you can die in a dream
I've read and heard before something to the effect, "You can't die in a dream", your brain won't let you. I'm here to tell you, that's not the truth. You can die in a dream, and it's happened to me several times.
I don't think I've posted the latest "death dream" on this blog yet, but the basic dream went like this: I gained consciousness in the dream just as "I" was diving into a body of water. I thought I was going into the water at a good angle, head first, but the angle was off just slightly, and either my neck or my back was broken, leaving me paralyzed.
For better or worse I didn't wake up at that point. I was floating in the water, maybe sinking, maybe rising, I don't know, but I was paralyzed, and dying. I didn't see my life flash before my eyes, and the only thing I really thought was that I wish I had my will documents finished. That was my last thought, and after that all thinking stopped, and I remained there in complete darkness, conscious, but with no thoughts, until I eventually woke up.
I've had at least two other dreams where I have felt like I died completely, and I will post those to this website when I find those notes.