Why do different people pay different levels of premium?
The amount you pay depends on the level of risk you provide to your
insurer. The price you pay for life insurance depends on your age, health, lifestyle and occupation. If you are older, have health problems and smoke, and happen to work in a dangerous environment, you will have to pay more for life insurance than someone who is younger, healthier, a non-smoker and/or in a low risk occupation.
Are the proceeds of life insurance policy taxable?
Generally they aren't subject to income taxes. However, they may be subject to other taxes, such as estate taxes.