Not only is heaven God's habitation, but it is also the place where His saints dwell. For those who have a problem with the term 'saint' thinking that this only applies to those who are more 'special' than the rest of us, 'saint' simpy means 'called out one'. If you belong to Christ, you are a saint. Remember that Paul in some of his letters called the Christians 'saints'. Death does not end all.
Physical death occurs when the soul is separated from the body.
Spiritual death is the eternal separation of the soul from God. But thank God, though the believer in Christ may die physically, having his soul separated from his body, he can never die spiritually. He will never experience the separation of his soul from God. My believing friend, this should be a special comfort to you. It means that your Christian loved ones who have died are not separated from the Lord and never will be.