Dave Ramsey feels that you can make more return on your money by putting it into other investments, and just using life insurance for pure death protection. Term insurance is the least expensive form of life insurance because the money all goes to death protection, without any going toward cash value, as you get with whole life. Thus, he advocates term insurance, but with investing your money on the side so that when the term ends, you have money to live on.
Owner, Mosaic Insurance Alliance LLC, 2122 164th St SW Ste 301, Lynnwood WA 98087
As a guest speaker at may Dave Ramsey classes, I'm quite familiar with Dave's perspective on term life versus whole life. Simply put, Dave is an advocate for getting the maximum amount of life insurance you can to protect the most valuable asset your family has…your income. Term Life Insurance delivers the biggest "bang for your buck" when it comes to pure death benefit for the dollar you spend.
There are many cash value benefits from a whole life policy. However, Dave's guiding principles are to use the money that would go towards the whole life guarantees and cash value options of a whole life policy in a different form of investment. For many people, term life insurance is an appropriate solution.
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There are many cash value benefits from a whole life policy. However, Dave's guiding principles are to use the money that would go towards the whole life guarantees and cash value options of a whole life policy in a different form of investment. For many people, term life insurance is an appropriate solution.