I’ve heard every possible pitch as to why whole life insurance is a good idea. Did you know that we might not have Disney World if it weren’t for whole life insurance?

I’ve said so many times that whole life insurance used to be the only way to have permanent insurance. Today it is the WORST way to have life insurance. There is simply no reasonable justification for the product. It costs too much. Because the cost is too high, those who are duped into buying it leave themselves under insured. It’s a win/win situation for the life insurance company and the life insurance agent. If you are the proud owner of a whole life policy you don’t get to share that winning limelight.

After listening to Dave Ramsey on life insurance the other night, I felt it very much worth sharing. I know there are a lot of people that “don’t do Dave Ramsey”, but if you pull your head out of the sand long enough you’ll see that he’s right. Most people are plodding through life making one stupid money decision after another. Most of us try to fix one stupid decision by making another stupid decision.

A life insurance example of that would be admitting to yourself that you are having trouble saving money for retirement, so you buy a whole life insurance policy to fix that problem.

Bottom line. At least 95% of life insurance needs are term insurance needs. Those needs that are permanent are best covered by permanent insurance that does not have a cash value aspect to it. Stay away from whole life.