You have often advised people to buy a 25 year term insurance policy, instead of a whole life policy.
If a young person takes your advice, what happens at the end of 25 years? The term policy would have expired and he would not have any life insurance for another 20 years of his life, or maybe longer.
Is it all right to be without life insurance?
You need life insurance to meet a financial need, i.e. to provide funds for your family in the event of your premature death. Your family needs the financial protection when the children are young.
After 25 years, your children would have grown up and are independent of you. During the 25 years, you would have accumulated savings. By investing the savings wisely, you would have accumulated sufficient funds that can take care of your future needs. You do not need life insurance any more, after 25 years.
Take a look at this example. If you buy a life insurance policy to cover $300,000, you have to pay $5,000 a year. If you pay $300 a year to buy the term insurance, you can invest $4,700 a year in an index fund, such as the STI ETF.
If the fund earns an average of 5% yearly, the accumulated savings would amount to $236,000. After another 5 years, it would have grown to $300,000. You don't have to die to get this sum. It is cash in your investment fund!
If you bought a whole life policy, the cash value at the end of 25 years is likely to be around $125,000 only, i.e. half of the accumulated sum.
Which is better?