The price of the life insurance is based on a number of factors such as your health, age, occupation and the death benefit you want. For younger and healthier people the premium would be lower as compared to older people and people suffering from any disease. Women live longer so they have to pay low premiums.

There are many guidelines and conditions that are followed in pricing the life insurance. Your health condition influences your life insurance policy pricing. The agent will ask you lots of questions regarding your past and present health condition and you may even have a medical checkup. If your family has a medical history like heart diseases, high blood pressure, diabetes, obesity etc, it can increase your premium or you may even be rejected for policy. Smokers and non-smokers also have different classifications for life insurance. Smokers have to pay more premiums as compared to non-smoker. Lifestyle of a person also affects insurance pricing. An adventure seeker person will have to pay high premium.
The person who reviews and evaluates your insurance policy application is the underwriter. After collecting all your information, underwriter will group you into a category. The various categories are preferred plus, preferred, standard and substandard. How much you will have to pay will depend on your category.
Another factor that is considered while calculating insurance premium is interest earnings. The premium amount you pay is invested by the insurance companies in stocks, bonds, real estate etc. and they earn interest on these invested funds.
It is very important to be truthful while purchasing life insurance policy. If you lie about your health condition and the insurance company finds out about your condition, they can cancel your policy and refuse to provide benefits. Based on various factors and risk assessment by the underwriter, insurance price is determined. It is advisable to obtain the minimum premium rates that suit your needs.