True, but there is not an afterlife of punishment in Asatru. Hel is the place where "those who died by old age or sickness" go and it's a place of silence for the dead to rest, pretty similar to the greek otherworld in a way. But again, all these myths are just sympols. For example, take Valhalla. The hall of the valiant dead.
The hall's walls are known to be made of spears, the roof of shields etc. while a goat in the rooftop produces mead non-stop for the warriors to drink. Obviously, that sounds ridiculous. But taking a look at the ancients' traditions, we see that the dead warriors were buried with their weapons; hence their otherworld is made of these weapons. Also, it is commonly believed in pretty much all religions that once you die, you will learn all the truth about religion and the universe, you will have unimaginable knowledge to the common alive man. The mead-producing goat is a sympol for that knowledge. The mead in many parts of the myths is a sympol for knowledge (the mead of wisdom found by Odin under the World Tree for example). So, according to the myths, the dead will gain huge amounts of wisdom and "no matter how much they drink, there will always be more to be drunk".
But really, the ancients did not believe in an otherworld where the dead stayed. They believed in reincarnation. They used to name their youngest children after other dead members of the family, so that the spirits of those dead ancestors could be housed within them. This tradition has survived till now too, as in most nations of the western world (and of the eastern if I am not mistaken), the young children are named after their grandfathers/grandmothers.