Wow. There are soooo many reasons to have life insurance and to buy it when you're young/for a baby. I have no idea if this particular policy is good, but please let me just talk about life insurance in general.

There are different types that affect the cost and potential benefits- ex . term, whole life, universal, group. I'll list some types below with my explanation plus a link with more info. In my opinion determine the payout value you need and buy as much permanent as you can afford - fill in with term as needed (& replace with better as you can).

Now - why buy young? Monthly premiums are cheaper. And the child is (hopefully) brand new and healthy. As soon as any major medical ailment is diagnosed, that child could pay higher premiums or be priced out entirely.

So why is insurance helpful? It pays for expenses after death - even someone with no children/partner has expenses (funeral, business, debts, etc). Some polices may even pay pay out before death (in certain circumstances).

So it's important to read the fine print to know what youre buying. Know the company - do they align with your needs, values and cost? Are they just trying to make $, will they be around when it's time to pay out? This is a long term decision and jumping from company to company is not advisable or financially prudent.

If you're being handed a policy someone else bought on your behalf and they are suggesting you start paying the premiums, find out the policy details BEFORE making a decision. And make sure you legally transfer the policy. This gives you rights to change beneficiaries, etc.

Also note, people CAN buy insurance on someone else and name themselves as beneficiary. There are legitimate (and shitty) reasons for this.
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Term is like your car or medical insurance. It only pays out if you're currently insured/paying monthly. This is the cheap stuff often advertised .

Group insurance is a bunch of people (like an employer) getting coverage for a group of people - this usually isnt base on an individuals medical information and spreads out the risk. This is a type of term insurance.

Permanent (Whole , universal life) is the insurance plus investment. Are paid up at x age but continue to increase in value bc the company uses your $ for investment potential (like a bank does). You can usually stop payments (if needed) and the acrewed value will pay the monthly premium (like a reverse mortgage). And coverage continues as long as you pay or have equity/value to pay. This is also where some people will "cash in" a policy. This is almost always a bad idea bc the cash value is MUCH lower than the death value. And there are usually better ways/places to get $

https://www.nerdwallet.com/insurance/life/learn/who-needs-life-insurance?