Depending on the country where you live, the laws can be vastly different, since in most countries the debts you may have with the government are inherited in the case of your demise, however any debt with a private entity is immediately forgiven, it is because of this many companies and businesses refuse to give loans to the elderly and to the sick, since they do not want to lose money in the case of their death, however it seems that now insurance companies are taking part of that risk by giving insurance to those people so those businesses can offer them loans.
A person who takes out a loan must be in good health because it is unlikely that the lender will give it when they see them sick. Government debt will definitely be inherited by the next government because there is a repayment agreement based on an agreement between the two countries. In fact, I see that almost most loan services must be paid off even though the person who took it has died, unless the loan we take is insured so that when we die the debt is clean because it is paid by insurance.
Loans are also not given to just anyone because they first do a survey before deciding. I used to work in a financial institution although it didn't last long so I know a little more about how loans are given. If it is not insured, almost all loans must be paid off even if the person who took it has died.