When you begin to look into life insurance you will notice a very broad range of policies, as well as premiums you will have to pay.
These premiums range anywhere from a few hundred dollars to over a thousand dollars per year depending on the policy and type of insurance you choose.
So what determines the cost of your life insurance? The costs are determined by the insurance company's actuators, when determining the cost for certain life insurance policies the actuators take into account 3 major factors.
Mortality Cost, Operations Cost, and Return on Investment.
Death Cost This is the cost of what the insurance companies will have to pay out on life insurance policies.
  The insurance companies look at your age, health, driving records, employment, and general hobbies when determining the cost of your policy.
  Upon reviewing these details you will be assigned a risk amount.
  Depending on your on how much of a risk you are will determine what you will pay for your policy.
The bigger the chance of the insurance company having to pay out on your policy the more expensive it will be.
Operating Costs These are the costs that the insurance companies accrue due to marketing and non marketing related costs.
  A typical example would be costs for maintenance, salaries, advertisements etc.
  Depending on the what it costs the insurance company to operate at will also determine the prices of life insurance policies.
Investment Income Insurance companies have a very large bankroll that is invested into numerous markets until it is needed for a policy claim.
  The better the insurance company does on its investments the more money they will have at their disposal, and therefore the lower life insurance costs will be.
This is because the insurance companies can use this extra money to lower prices and become very competitive with other insurance companies.