Nah, I don't think scripts are "fast" enough to catch that before the player dies. Use an eventhandler instead. I KNOW that you can make yourself invincible with one, so I'm sure you could do "respawns" like this as well.
Maybe something like this:
player addeventhandler ["Killed", {player setdammage 0; removeallweapons player; player setpos getmarkerpos "respawn"}]
I haven't tried using a killed EH on the player though. I know that using a "hit" EH, you can make yourself invincible like so:
player addeventhandler ["hit", {player setdammage 0}]
So maybe you would need to use a "hit" EH instead:
player addeventhandler ["hit", {if (damage player > 1) then {player setdammage 0; removeallweapons player; player setpos getmarkerpos "respawn}]
Let me know which one works