Yes, when the drop falls into the ocean, it is certainly dying in one sense, it is dying as a drop. And in another sense the drop attains for the first time to the great life - it lives as the ocean.
Tao mystics never talk about God, reincarnation, heaven, hell. No, they don’t talk about these things. These are all creations of human mind: explanations for something which can never be explained, explanations for the mystery. In fact, all explanations are against God because explanation de-mystifies existence. Existence is a mystery, and one should accept it as a mystery and not pretend to have any explanation. No, explanation is not needed – only exclamation, a wondering heart, awakened, surprised, feeling the mystery of life each moment. Then, and only then, you know what truth is. And truth liberates.