There is no obligation or Mitzvah to purchase life insurance in order for one’s spouse and or children to have money after one passes away. On the contrary, from a Torah perspective, it actually doesn’t make sense to purchase life insurance. Allow me to explain:
The Gemora in Eruvin discusses that if one has money, enjoy it and don’t try to save it all for your children after one’s death for a simple logical reason. If one’s children are supposed to have money they will have money without this inheritance. But if one’s children are not supposed to have money they will lose all this inheritance in a business deal.
Hashem takes care of His children and it is not our responsibility to care for our children’s finances for after we die nor do we have any power to actually take care of our children’s finances for after we die.
Our obligation is to teach our children a livelihood so our children can do their hishtadlut in an honest manner and lead honest lives.
We are also not permitted to waste our money. So if you have “extra” money you are not permitted to throw it in the garbage either. You can and should most definitely save money for expenses you may incur during your lifetime. For example, saving money to pay for your children’s tuition and weddings while you’re alive is the right thing to do. Saving for expenses your children will incur after your death is not necessary as we brought down from the Gemora.
There is also another Halacha which discusses someone giving away all his wealth before he dies leaving his children with no inheritance which is not permitted either.
There are many Halachot when it comes to saving and spending money and you should consult your Rav with specific questions.
So to answer your original question, since life insurance is not necessary (despite salesmen telling you otherwise) and it also has such a low-interest rate I would say its a terrible investment. You are better off investing that money into a low-cost index fund where you will make a lot more money and it will be available to you whenever you need it.