Read what Dave Ramsey say on the subject. He does a good job of explaining how bad of an investment whole life is vs. term. Term is the way to go.
Dave Ramsey has never had to tell someone they were uninsurable and could not provide coverage for their family. He is simply selling a system and his term insurance recommendations fit into what he is selling.
Permanent insurance does more than just provide "cash value". It guarantees insurability and many other benefits that most term insurance does not offer.
I have been in the business for a long time and have one of the largest agencies in the country. Our process is very simple - determine what the client needs, then explore the different options for that person to get that amount of coverage. The type of policy you have does not matter when you die. At that point it is all about the coverage amount. Get the coverage amount right, then worry about the policy type. But there are times when a permanent policy makes A LOT more sense than a term policy.
For Dave Ramsey to paint everyone with the same brush regarding term life insurance is simply irresponsible. Just like some of his hard line opinions on debt are simply irresponsible. There are times where taking a calculated risk is part of life. For example, not buying a business because you may have to get a loan for part of it. Painting everyone with the same brush on that situation is also irresponsible.
Now, I agree with him that debt for the most part is bad. You should avoid unsecured debt at all cost and pay cash for cars. Don't buy things you don't need, especially if it requires financing. Take out 10-15 year mortgages and put a lot of money down when you buy a house. But when an opportunity presents itself that may be life changing for you and your family, sometimes you just have to take a little risk. I've done it and I would do it all over again. And you know what? So would Dave Ramsey.
