Well there is an important paradox here I'd say. It's not completely straightforwards.

To me, when someone 'passes on', generally they pass into the 4th Dimension to experience deeper integration and awaiting another reincarnation, unless they become a earth bound soul because they passed on in fear or they ascend into the next realm.

So yes, life - as a soul - continues. Except in particular circumstances - like we have now on earth - where there are bottlenecks because there's lack of evolutionary progression. I have witnessed souls being dissolved in these circumstances because of progressive over attachment. I also know that there's a clearing mechanism of layers of consciousness which can break apart souls that are attached to that layer. To me, that's what happens in a black hole for example. Consciousness is broken down into its elementals - unless at that point, the soul becomes enlightened by completely surrendering attachment to the experience.

We must also try to remember, we are not the soul. We are pure presence - the seer - which IS eternal. Except of course our experience of the seer is through a soul.

So to me it's not exactly simple. There can be loss of life through the loss of a soul. But every soul has the possibility to become enlightened and therefore eternal.

At least that's my perspective.