you ARE NOT going to die... but yes, it can induce massive amounts of paranoia in people. I've personally eaten enough canna-oil (highest has been 6 grams baked into 2 brownies, high grade white rhino and cindy 99) that i've experienced LSD/mushroom like effects, but with a different 'edge' to the high. I'd say a nice, safe dosage is 1.5 grams, and the more fun (if you can handle your anxiety and your high) is around 2.5-3 grams.
Check out the MEGA anxiety / paranoia thread for tons more info, found my signature, and in the directory.
Enjoy, and don't worry, you won't die. You may get the spins and think you are dying, but you are not.