I believe honesty is, for the most part, always the best policy. However, the answer to this question is never black or white, there are many shades of grey. If the truth being told is going to hurt, damage or destroy something, or someone, then I believe you need to ever so gently speak the truth. Or perhaps tell the truth in stages. In my opinion, the only real measure of if a lie or truth is bad, is the intentions within the heart of the teller.