Any tips on the type of life insurance for grandchildren, amount and most of all the best insurance company?
You might want to check out Gerber Life Insurance plans for children... they've been specializing in this for a very, very long time (mom took policies out on all us kids when we were born in the 60s). After I got married my folks gave me the policy and I cashed it in to help buy our first house. It wasn't a lot of money, but was certainly appreciated.
Grandparents are eligible to insure their grandkids, too.
Look to see if the parents have term insurance. They can add a rider to their existing insurance for much cheaper than The while life options offered by a baby food company.
Only thing a child would really need to cover is burial. If you are looking at providing money long term look at opening a college fund, the money will be much better spent. Whole life is a horrible vehicle for investing and life insurance.