Here's something many people don't realize: turning 50 doesn't mean you've missed the boat on life insurance. Sure, premiums are higher than they were in your 30s, but you've also got different needs now. Maybe your kids are grown, but you're thinking about your spouse's retirement security. Or perhaps you want to leave something behind for grandchildren. The good news? You have options, and they might be more affordable than you think.
The insurance industry has evolved to meet the needs of older buyers. Whether you're looking for basic coverage to handle final expenses or substantial protection for estate planning, there's likely a policy that fits your situation. Let's break down what actually makes sense at this stage of life.
Why Your Life Insurance Needs Change After 50
Think back to when you first bought life insurance. You probably had young kids, a fresh mortgage, and decades of income your family would lose if something happened to you. Now? The math has changed. Your mortgage might be mostly paid off. Your children are likely financially independent. But new considerations have emerged.
For many people over 50, life insurance shifts from income replacement to covering specific expenses. You might want to ensure your spouse can maintain their lifestyle in retirement without your pension or Social Security income. Or you're thinking about final expenses—the average funeral costs between $7,000 and $12,000, and that doesn't include medical bills or estate settlement costs. Some people want to leave an inheritance for children or grandchildren, or cover potential estate taxes if they have significant assets.
The key is getting honest about what you're actually trying to protect. That determines which type of policy makes sense and how much coverage you need.
Term Life Insurance: Still an Option
Yes, you can still get term life insurance after 50. It works the same way it always has—you pay premiums for a set period (typically 10, 15, or 20 years), and if you die during that time, your beneficiaries get the death benefit. If you outlive the term, the coverage ends.
The catch? Premiums increase substantially with age. A healthy 50-year-old might pay $100 to $200 per month for $500,000 in 20-year term coverage. Wait until 60, and that same coverage could cost $250 to $450 monthly. By 70, if you can even qualify, you're looking at $800 or more per month.
Term insurance makes sense after 50 if you have a specific, temporary need. Maybe you want coverage until your mortgage is paid off in 10 years. Or you need protection until your spouse reaches full Social Security age. For people in good health who only need coverage for a defined period, term can still be the most cost-effective choice.
Permanent Insurance for Estate Planning
Permanent life insurance—which includes whole life and universal life policies—provides coverage for your entire lifetime as long as you pay the premiums. These policies also build cash value over time, which you can borrow against or withdraw if needed.
The trade-off is cost. Permanent insurance can be five to ten times more expensive than term insurance for the same death benefit. But here's why some people over 50 choose it anyway: guaranteed payout. If you're buying insurance specifically to leave money to heirs or cover estate taxes, permanent insurance ensures that money will be there regardless of when you die.
Whole life insurance provides fixed premiums and guaranteed cash value growth. Universal life offers more flexibility—you can adjust premiums and death benefits within limits. Guaranteed universal life is a hybrid that focuses on the death benefit without emphasizing cash value, making it cheaper than traditional whole life while still providing lifetime coverage.
For people with estates large enough to trigger federal or state estate taxes, permanent life insurance can provide liquidity to pay those taxes without forcing heirs to sell assets. For others, it's simply a way to leave a guaranteed inheritance or make a charitable gift.
Final Expense Insurance: Simplified Coverage
If your main goal is making sure your family doesn't get stuck with funeral and burial costs, final expense insurance might be all you need. These policies typically offer $5,000 to $25,000 in coverage and are specifically designed for people over 50.
The application process is usually simplified—some policies require just a few health questions, while guaranteed issue policies accept everyone regardless of health status. The downside? Higher per-dollar costs than traditional insurance. But if you have health conditions that would make traditional policies expensive or unavailable, final expense coverage offers a guaranteed way to cover end-of-life costs.
Monthly premiums typically range from $50 to $150 depending on age, coverage amount, and whether you choose simplified issue or guaranteed issue. Many policies also provide immediate coverage, though some guaranteed issue policies have a two or three-year waiting period where they only return premiums plus interest if you die during that time.
Understanding How Cost Increases With Age
Life insurance companies use mortality tables to set premiums—basically, they calculate the statistical likelihood you'll die during the coverage period. After 50, that risk increases more rapidly than it did in earlier decades. A 55-year-old might pay 40 to 60 percent more than a 50-year-old for the same coverage. By 65, you could be paying three times what you would have at 50.
Health conditions compound the cost. High blood pressure, diabetes, elevated cholesterol, or a history of heart problems can significantly increase premiums or even result in denial. This is why acting sooner rather than later matters—not just because of age, but because health often declines.
That said, insurance companies compete for healthy older buyers. If you're in good health, shop around. Rates can vary significantly between carriers, and some specialize in coverage for older applicants. Working with an independent agent who represents multiple companies can help you find the best rates for your specific situation.
How to Get Started
Before requesting quotes, clarify what you're trying to accomplish. Are you covering final expenses? Replacing income for a spouse? Leaving an inheritance? Paying off specific debts? Your goal determines both the type and amount of coverage you need.
Gather your health information—medications, conditions, recent test results. This helps you get accurate quotes and speeds up the application process. Most insurers require a medical exam for traditional policies, though simplified and guaranteed issue products skip this step.
Compare quotes from multiple carriers. Pricing varies widely, especially for older applicants. Don't just look at premiums—understand what you're buying. Is coverage guaranteed for life? Can premiums increase? What happens to cash value if you cancel? What's excluded?
Finally, review your coverage periodically. Your needs will continue to evolve. The policy that makes sense at 50 might not be optimal at 65. Maybe you need less coverage as debts get paid off, or perhaps you want to add coverage for specific estate planning goals. Life insurance isn't a set-it-and-forget-it decision—it should adapt as your life does.
Getting life insurance after 50 might cost more than it would have a decade earlier, but it's absolutely still achievable and often necessary. The key is understanding your specific needs and choosing coverage that aligns with your financial goals and family situation. Whether you need term coverage for a few more years of debt protection, permanent insurance for estate planning, or just enough to cover final expenses, there's likely a solution that fits your budget and provides the peace of mind you're looking for.
