re: Give me scenarios where whole life/VUL would be a good idea to own

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Said he picked up two $10M whole life policies, in which he listed each kid as the 2nd person on the policy, at a rate equivalent to a $2M 20-year term-life policy just for himself

How does it compare with term for the kids? Is the objective to pass wealth to grandkids, skipping a generation?

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The attraction of the plan is compound growth.
The most valuable asset for large compound growth is time. Securing the illustration to a 2nd to die is a the easiest way to illustrate a stretched out compound growth chart.

My 2 concerns with this type of plan.
1) it is still whole life. The most expensive insurance contract in the market. Management fees eat into performance every year. If you are looking at this as an investment opportunity, an index fund or ETF could potentially do much better 8 years out of 10.
2) anything that requires super long durations to show attractive compound growth needs a crutch to make it look attractive.

Additional concerns would potentially be the quality of the underwriter. You are forecasting a life insurance policy that could stretch out 80 to 100 years in order to payout on promises. Where is Sears? Where is Blockbuster? Where is Lehman Brothers? There is a market risk possibly not associated with normal insurance instruments.