Your life insurance premium depends on quite a few variables, some of which you can control and some of which you can't. You can't change your age or your health history, for example, but you have power over whether you smoke, carry a lot of extra weight on your body or engage in high-risk activities like scuba diving or rock climbing.

There are several areas where you have the ability to influence your policy and its premium. The underlying message is this: Know what you're entitled to. Here are a few guidelines.

Assess your needs

The purpose of life insurance is to be sure that if you die, your debts will be paid, your dependents can continue to live in their current lifestyle, and if you have children, that their education, medical expenses and other major costs will be provided for.

How much life insurance you need, exactly, will depend on factors such as the size of your family, the age of your children, how much you owe on your home and whether other relatives are providing for any of your dependents.

Term life policies can serve to cover specific debts your family has. Say you owe $200,000 on your home. You can purchase a $250,000 term life policy (with many companies, price breaks occur every quarter of a million dollars) that extends 25 years or whatever the length of your mortgage is. This means your house will be paid off in full even if something happened to you.

Similarly, you can buy term life when your children are born with the goal of providing for them until they turn 18, or until they finish college. Rather than just picking out a coverage amount, sit down with your spouse and a financial advisor and calculate what you'd each need if the other were not there. Once you know exactly how much you need, you can look for the company and policy that meets those needs, and you won't be susceptible to any agents selling you more than you need.

It is true that buying more coverage can result in your paying less per unit (the "buying in bulk" principle applies here too), but if you don't need it, it is still not the best use of your money. You can always buy more coverage later, but premiums will increase as you get older, and changes in your health can affect your insurability. Another option is to buy term life insurance, then convert it to a whole life policy (which covers you as long as you live, rather than for a set number of years) when it matures.

Buy only what you need

Watch for hidden or redundant costs. For example, some companies tack on charges for monthly payment plans. Be on the lookout so you can make an informed decision - if it's a difference of 15 percent of the annual cost, you may opt to pay your premium annually or every six months. Another option of questionable value is a premium waiver, which can cost a fair amount to add. That waiver will cover your premium payments if you become disabled. But you likely have this angle already covered with existing disability insurance.

Lower your premium by kicking high cost habits such as smoking. It may not be easy, but it will pay off - many insurance companies charge smokers twice as much as non-smokers for the same amount of coverage.

However, remember that honesty is always the best policy. If you lie about your smoking habits, then die of a smoking-related cause, your insurance company can legally refuse to pay your death benefit (though it still must pay your beneficiaries the amount you paid in premiums plus any interest earned).

Losing weight, if you're more than 20 pounds over recommended weight for your height, can also save you a bundle. If you fall into that category, look at the savings as an incentive to get into shape, then do it for yourself and your family.

Make trade-offs

The cheapest policy isn't necessarily the best. Your monthly premium should go to a company that will have the financial strength to pay your beneficiaries when you die. Independent companies such as A.M. Best and Standard and Poors rate companies on their financial strength, and your state insurance commissioner's office can help you find out whether a particular company has a reputation for paying its claims.

Finally, if you have a health condition or any circumstance that seems like it will adversely affect your premiums, shop around for companies that "specialize" in your particular situation. Some companies are more familiar with some diseases, risks or lifestyles than others, which can mean significant savings for you.

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