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In Thor Ragnarok, Odin says to Thor that Asgard isn't a place, it's the people. Also Hela draws her power from Asgard. So when Asgard got destroyed, why did Hela and her power die?

I mean the Asgardians were alive. So Asgard lived. So why did Hela's power die?

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This is a cause of common confusion.

What Odin was referring to was that Hela's power comes from Asgard as a physical place. Consequently, when the physical place that was Asgard was destroyed by Surtur then Hela was (as far as we know) also destroyed.

The line...

Asgard isn't a place, it's the people.

is meant to refer to the true strength and meaning of Asgard.

Yes, the physical place is no more but the true Asgard "lives on" in its people wherever they are.

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