About How Much Does Life Insurance Cost? 
The insurance company hires actuaries that determine the likelihood that someone your age will die in the coming year , and then in subsequent years until the termination of the policy . That figure , plus expenses makes up the premium for a standard risk . The underwriter at the insurance company reviews your medical history and doctors reports to determine if you are in the standard category . You could be a preferred risk or a substandard risk . Premiums are adjusted from the standard risk premium to reflect these variations . 