Do Prophet Muhammad (SAW) hear us when we say السلام عليك ايها النبي in our prayer?

السلام عليكم، Do Prophet Muhammad (SAW) hear us when we say السلام عليك ايها النبي {translation: Peace be upon you O Prophet (SAW)} in our prayer when we reciting tashhud? There are sects which say Prophet (SAW) is alive and hear our salutions; But why followers of other sects still read this in tashahud, when they strictly condemn this believe and say He (SAW) is died just like any other person? Thank you.