Answer:
yes he did die in typical jedi fashion...he wasn't killed though. he died of old age. in the final installment of the Starwars trilogy, Luke is with him in his home when he fades away into nothingness, joining Obi Won on the other side. They were both later joined by Anakin, Luke and Leia's father. Obi Won and Anakin did a "crossing over" of sorts, although since they are no longer among the living, the are thought o have "died".