Skipping all the tax-related issues of life insurance policies,
Life insurance is an economic insurance.
Parents need to be insured so that their families can continue in the event of a parent’s death. Even non-working partners need to be insured – they don’t bring in income, but they prevent a lot of spending. (note: if the cost of insurance for parents is a budget issue, consider term life insurance rather than whole life)
Children do not contribute to the economy of the family and they don’t do the kinds of things that save the family from spending money except for the expenditure created for funeral-related services should they die.
Assuming a child is a normally healthy being, the odds of their dying are low, though the odds rise as the child ages and takes on other risks (driving…)
Funerals (to use the term broadly) do not have to be expensive unless that is your choice.
You might consider taking the premium you would spend and putting it in your child’s education account (as an additional sum). Should your child die, they won’t need the educational fund, so that is available for funeral related services. If they survive their childhood, which is the most likely outcome, their educational funds will have increased much more than otherwise.