Yep let's pay for insurance that will probably never pay out and say you will invest the rest but most never do. Sounds like he sells investments! Funny that most spend throughout their lives so much more on term and have nothing to show for it. Then go to their attained age when they convert and pay crazy prices for whole life because they listen to ppl like you! When they could have had a bunch of cash value, payments wouldn't ever change and the coverage is there forever! He forgot to tell people that 1% of term pays out in the United States! 100% of whole life pays out and the equity and pay out is tax free! Term stands for terminate it is also tax free but it's set up so u lose because when u out live it u lose all the money u spent and then if u still need it u pay way higher rates if you are still healthy enough to get it! Investing the rest sounds great if U have thousands to put up front to start to invest! Oh and he forgot to tell U what happens if your investments fail! U lose all that 2! U take your 1% pay out I'll take my 100% and cash value tax free and broker fee free! Thank You!

2 potential problems ; economic recession and/or the exposure of taxes with having $500-$700k in pre tax vehicles. The argument should not be Term life or Whole life, rather the diversification of the two.

He's talking to a subculture most people unfortunately, don't plan like sir ramsalot

Great explanation, Mr. Ramsey. Most people don't fully understand the financial planning part while you have the TERM insurance. Well said.

How did this make sense? Please let me know….ya that's a dream but realistically? After post secondary they r usually in debt sooooooooo……….when u die ur death benefit could really contribute to a lot especially with the interest rate is increasing the loan!

It is fine to have an opinion, but why does he have to be such a condescending jerk about it? Educate in a positive manner, Mr. Ramsey.

I just want a life insurance that pays off when I died to my family so which one should buy

Lol the comments from people who can't save money

"Why do I need health insurance, I never get sick" "Why do I need life insurance, I'm not gonna die" This guy is beyond stupid. The fact that he such a following is an indictment of our society. Our country is the laughing stock of the world because of people like him.

Whole all the way. Yes it's more expensive but it accrues cash everyday. Unlike term which is money wasted. Besides, how can he say go term because it's cheaper yet recommends everyone get a 15 year mortgage ?

Seems he is conveniently leaving out the tax implications of investing in mutual funds. Everyone has different goals so trying to make a cookie cutter approach is silly.

He has no clue!

This guy is hilarious!! I had no idea Dave Ramsey had such a sense of humor and in your face attitude!! Love it!!! BTW Term is the best way to go! So many benefits!!

Because Dave recommends a 15 year mortgage or less he thinks that everyone will magically do that and we can base our arguments on this flawed notion.

Lol

Sounds like his wife wants to kill him.

ironic how many people try to bash this guy, yet everyone that's gone with his teachings always better off. preaching truths and the haters are going to hate.
Another thing, I've yet to see a person retire off their cash value life insurance. I do know this though, lots of people retires off retirment accounts.

this guy is such an idiot. For starters he doesn't consider many scenarios to answer the question. secondly, he depicts an utopian scenario. Perhaps this man has not seen the debt of the country. Sr. our current debt is 19 trillion dollars. Now you expect that the country that had all off that debt that it's citizens, who by the way are responsible for 65,000 dollars of this debt, And that the number per capita it's 162k last time I checked, will put enough money to the side so their heirs won't inherit their debt? come on man get real.

So Dave's example is a father of 2 who makes $40,000 annually. He puts 15% in his 401(k) (per Mr Ramsey's advice) and pays +/- 20% in federal, state and other taxes on the remaining $34000. This leaves him $2266.66 monthly to shelter, feed, clothe, transport, entertain, maintain the home and cars, God willing take a vacation, pay for health insurance, build an emergency fund for a family of four!……..Does anyone besides Dave Ramsey think this is reasonable?

20 years maxing out a roth (close to 15% of 40,000) at Dave's mythical 12% EVEN YEAR still doesn't produce the numbers he's spewing. also, don't you just love how this scumbag trashes life insurance agents while raking in the royalties from promoting Xander term insurance. Why do all fortune 500 companies buy whole life for their key employees instead of buying term and investing the difference? maybe they don't know how to manage finance…give me a fucking break!

The fact of the matter is, that there are a ton of people out there who come across Suzy or Dave's recommendation to buy term life insurance instead of the others and they become opposed to permanent insurance regardless of the rest of their financial picture. They haven't paid off their house, they are old, they continue to have liabilities, they become uninsurable, their term does expire. Any number of scenarios that do not fit the picture perfect concept that he lays out here. He is right. In his dream world where everyone gets completely out of debt, pays their house off, kids are through college, and they don't care about leaving anyone anything other than a clean slate, term is the best.