After the final, terrible battle at Ragnarok the entire cosmos will be destroyed. The only humans who will survive this destruction are Lif ("life") and Liftrasir ("eager for life") because they hid themselves in the Yggdrasil. When a new world arises, Lif and Liftrasir will be the progenitors of an new race of humans, and their descendants will inhabit this world.
See Also: Ragnarok