Quote from Niddro
I don't think that's how it will work. Playing with any character will increase the XP towards paragon levels for the account. The question is: should the XP that one character have gathered be removed from the account when it dies?
There will be no benefits to dying with your character unless you can't create more characters and have to kill one off that's on plvl 100 (perhaps that's what you meant).
There was an interview/bluepost that said
- Under Paragon 2.0, if a character dies or is deleted, the amount of Paragon experience it contributed to your Shared Paragon level will not be lost. This is a benefit of having Paragon experience stored at the account level, rather than at the character levelI
The question that is still pending answer - will already dead HC characters contribute to the accumulated Paragon level that will be evaluated when expansion hits. They haven't shared any details on this question, but if they decide to count - it's probably better to delay this announcement closer to the release to prevent possible "exploiting" and whine.