A person with a fixed income or a person who is employed (in the ideal world) can usually afford whole life insurance. The premium (payments for the insurance) are based on a number of factors including:
Amount of insurance coverage
Age
Gender
Health status
Income, etc.
The rule of thumb, at least in my insurance training, is that you should not pay more than 6% of your monthly or annual income for life insurance. If you can afford to give up 6%, then you should be fine. Your life insurance agent should discuss with you all these things before writing a policy on you.
Many cost conscience and affluent consumers can afford to pay for participating whole life insurance for their indemnification needs and do pay, but many do not because they can generally obtain the same coverage via a guaranteed universal life insurance policy. This is an affordability issue versus a wise use of the money issue. This becomes more evident if the consumer needs temporary coverage and selects term life insurance.
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Amount of insurance coverage
Age
Gender
Health status
Income, etc.
The rule of thumb, at least in my insurance training, is that you should not pay more than 6% of your monthly or annual income for life insurance. If you can afford to give up 6%, then you should be fine. Your life insurance agent should discuss with you all these things before writing a policy on you.