Here is what Dave Ramsey has to say about borrowing money against your home to invest (essentially the question):

Taking out a HELOC is a bad idea. If you did, you will pay interest on the money you borrow and then you will pay fees when you buy stocks. In the end, you most likely will not come out ahead. Not to mention the risk you will add to your finances because you took out a loan.

He also frequenly says that debt=risk. So, borrowing to invest (leverage) increases the downside risk. Also check out this quiz (see question #6). Some of the questions are humorous! :)

Here is what Dave has to say about cash value life insurance:

Myth: Cash value life insurance, like whole life, will help me retire wealthy.
Truth: Cash value life insurance is one of the worst financial products available.

Sadly, over 70% of the life insurance policies sold today are cash value policies. A cash value policy is an insurance product that packages insurance and savings together. Do not invest money in life insurance; the returns are HORRIBLE. Your insurance person will show you wonderful projections, but none of these policies perform as projected.

Dan