However, his death taxes are based on his total assets, which usually includes insurance. His kids come up short. The beneficiary may own the policy. A trusted friend may own the policy. A Life Insurance Trust may be used.
Young beneficiaries pose a problem.
Of course, if your children are mature and stable, they may be the owners personally, paying premiums with money you give them. However, a Trust could provide them with asset protection. Your child is beneficiary. Bob is subject to gift tax on the proceeds, when you die. Uncle Bob cashes in the policy, or he pockets the money you give him to pay the premiums, and the policy lapses.