Is it tru that when you buy insurance on your children that the parents/owners must have insurance as well?

If it is life insurance, the parents do not have to be insured. Insurance on kids is great if you get guaranteed renewals. That way, even if their health becomes a problem they can get insurance at a reasonable rate. If you use a whole life or universal life product, you can use it as a means to finance a college education without a big tax liability on the gains.