My mom owns nothing. She has very little money, no savings. As beneficiary of a life insurance policy do I have to use this for her debts?

I do not believe you are responsible for her debts. When she dies her assets stand for her debts. The insurance policy is yours, not an asset of hers if it pays you after her death. That is my understanding but I would pass this one past a lawyer.

I had a retired friend whose employer had a 100k policy on her. She named her only child the beneficiary. My friend had remarried. My friend new she was dying and expected that out of that 100k her daughter would pay for her funeral. Didn't happen. Someone told the daughter that the money was hers and she was not responsible for the funeral expenses or any bills her Mom had. So the cost of the funeral fell on the husband.

Probate law in most states provides any estate assets be used first to pay burial expenses then costs of the estate administration and then any creditors. The life insurance policy is only considered part of the estate if your mother named the estate as the beneficiary. If she named you as the beneficiary, you are free to spend the money as you please.

If you are named beneficiary that is your money at her death. You are free to use it as you choose. It will not go through probate.

Unless you personally signed for her debt you can not be held responsible.

Never give a debt collector your personal information, this is not your debt, so they don't need your information. They will use it to harass you.