In 'Pulp Fiction', the gimp does die. There is a rather violent and chaotic sequence of events that leads to his death. It's part of the dark and unpredictable nature of the movie's storyline, which is filled with all sorts of strange and often brutal encounters.
In pulp fiction, 'gimp' can refer to a disabled or lame person. However, it can also have other more derogatory or specific connotations within the context of the seedy or underworld elements often depicted in pulp fiction.
The gimp comes into the picture at a crucial point in Pulp Fiction. It's not easy to remember exactly when off the top of my head, though. You might want to rewatch the movie to find out for sure.