Dead, but still, miraculously, alive. Those who die with Christ rise with him, too, and continue to live.
The realization that we have already died liberates us from the main thing we are usually worried about; namely, dying.
I think St. Paul is on to something. This theological insight is actually pretty "realistic," too, since the one thing we can be sure about is that we are all going to die. Since that is true, why not get that out of the way up front? If you can do that, then everything that is left is just life, and life more abundantly!