Hi N.,
Here's a response I gave to another mother on mamasource the 2nd of November when she wanted to know how to "explain death" to her little one in light of her grandfather's soon passing away. Hope it's some helpful or ask me all you want.
"I'm a Christian, a pastor's wife and mother of ten children myself...they are now 10 down to 4. Our children lost their Grandfather on my hubby's side 4 years ago and my Dad ten years ago. So we definitely had little ones in the home both times.
I always instruct our children as they grow up that Jesus said in John 3:3, "Except a man be born again he cannot see the kingdom of God." Then they, of course, need to know what it means to be "born again". For which I go through Romans 3:23 (all have sinned), Romans 6:23 (our sin earns us death=eternal separation from God), Romans 5:8 "But God commendeth His love toward us in that while we were yet sinners (wicked), Christ died for us." Romans 10:9,10 and finally Romans 10:13 "For whosoever shall call upon the name of the Lord shall be saved (or born again)."
Then the Apostle Paul gives great encouragement to those who've been born again and experienced such spiritual life within them that they've desired to be with and love believers (I John 3:14) and they love to gather with believers and other evidences seen through I John...the evidences don't save them; but show they have spiritual life and have been saved. Just like you should know a veterinarian by the work he does...not by his diploma on the wall. Oh, Paul's promise upon the point of death for those who are born again was II Cor. 5:8 "to be absent from the body is to be present with the Lord."
I'm always so thankful God gives us 70 or 80 years on this earth to come to know Him...He actually draws us to Himself...but so many waste that time in other pursuits.
Hope that Biblically helps to explain eternal things to your daughter. Let me know how it goes if you don't mind...
B. in Eau Claire, WI