This is an option to put allies back into the tavern, to keep a space in the party or make way for new ones. Allies in the tavern do not risk death. This is an option for characters over their race lifespan, as they risk dying through sleeping in inns or being irreversibly dead through encounters.
Until the alchemist have crafted an item that reverses age, this is a safe option for retired characters.
Spending a short time on Standby won't remove status afflictions that pass with time, such as Fear.