Paying Debts After Death

I live in Idaho. My mother-in-law has terminal cancer and isn't expected to live very long. I have tried to convince her to draw up a will, but haven't had any luck.

She has accumulated a lot of debt and has little to no assests. When she passes away, what will be used to pay debts? I understand that her estate will be liquidated to pay debts, however I don't know anything about life insurance. Will life insurance need to be used to pay debts? Also, what if after liquidating her estate, all debts aren't able to be paid?

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If her total assets are NOT sufficient to pay for her debts, the creditors will lose. So does anyone who guaranteed or co-signed for her, as creditors come after them. BUT no one can inherit anything until they are paid.

If there is no beneficiary, or the insurance is payable to her estate, it becomes an asset of her estate and is uesd to pay the debts.