This report presents an empirical investigation of price variation among both whole life insurance policies and term insurance policies. It is hypothesized that price differences between policies can be explained by differences in policy contract provisions and differences in selected company characteristics. Information was collected from a sample of whole life policies and term policies marketed in North Carolina in 1982. The empirical results strongly support the hypothesis that policy contract provisions and selected company characteristics account for differences in whole life policy prices; the results indicate that fewer contract provisions and company characteristics are related to differences in term policy prices.