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Premiums are based on several factors: age, health status, smoking habits, coverage amount, and policy term. Younger, healthier non-smokers pay the lowest rates. Premiums increase significantly with age and health risks.

A common rule of thumb is 10-12 times your annual income. Consider your debts, mortgage, children's education costs, and how many years your dependents would need financial support.

Term life insurance provides coverage for a specific period (10, 20, or 30 years). It pays a death benefit if you pass away during the term. It's typically the most affordable type of life insurance and is ideal for temporary needs like a mortgage or raising children.

Term life covers a specific period and has no cash value — it's pure protection at a lower cost. Whole life covers your entire lifetime, builds cash value, and has a guaranteed death benefit, but premiums are 5-15 times higher. Term is best for most people's needs.

The biggest factors are age (premiums roughly double every decade), smoking status (smokers pay 2-4x more), health conditions, coverage amount, and policy term. Gender also matters — men typically pay more due to lower average life expectancy.

Consider your income replacement needs (10-12 years of salary), outstanding debts (mortgage, loans), children's education costs, funeral expenses, and your spouse's earning capacity. Subtract existing savings and any employer-provided coverage to find the gap.

A beneficiary is the person or entity who receives the death benefit when you pass away. Most people name their spouse as primary beneficiary and children or a trust as contingent beneficiaries. Review and update your beneficiary designation after major life events.

Employer group life insurance (typically 1-2x salary) is a good start but usually not enough to fully protect your family. It also ends when you leave the job. Consider supplementing with an individual policy for portable, adequate coverage that doesn't depend on your employer.