Life Insurance After 50: Your Best Options and What to Expect on Costs

Turning 50 is a financial inflection point. The kids may be nearly grown, retirement is on the horizon, but the mortgage is still there, your spouse depends on your income, and nobody wants to leave their family scrambling to cover funeral costs or outstanding debts. Life insurance after 50 is not only available — for millions of Americans, it is essential. This guide covers every option, what coverage realistically costs at each age bracket, how your health affects pricing, and the critical differences between medical exam and no-exam policies.

Why Life Insurance Still Matters After 50

The reasons you need life insurance shift as you age, but they do not disappear. At 30, the primary concern was replacing decades of lost income. At 50 and beyond, the needs are more targeted but just as real.

• Mortgage protection. Many 50-year-olds still carry 15 to 20 years of mortgage payments. If you die, your spouse could face selling the home or struggling to keep up with payments on a single income or reduced retirement savings.
• Spousal income replacement. If your household depends on two incomes or you are the primary earner, your death creates a gap that savings alone may not cover — especially if retirement accounts are not yet fully funded.
• Estate planning. For larger estates, life insurance provides liquidity to cover estate taxes without forcing the sale of property, a business, or investments at an inopportune time. An irrevocable life insurance trust can keep the death benefit out of your taxable estate entirely.
• Funeral and final expenses. The median cost of a funeral with burial is approximately $7,848 according to the NFDA, and the total with a cemetery plot, headstone, and related expenses often exceeds $12,000. A small policy ensures these costs do not burden your family.
• Outstanding debts. Car loans, credit card balances, home equity lines of credit, and medical bills do not disappear when you die. They get paid from your estate, reducing what your heirs receive.
• Leaving a legacy. Some people use life insurance to leave a tax-free inheritance, equalize an estate among children, or fund a charitable gift — goals that become more concrete as you pass 50.

Types of Life Insurance Available After 50

Adults over 50 have access to the full range of life insurance products. The right choice depends on how long you need coverage, how much you can afford, and your health status.

Term Life Insurance

Term life covers you for a set period — typically 10, 15, 20, or 30 years — and pays a death benefit only if you die during the term. It is the most affordable type of life insurance per dollar of coverage. At 50, you can still access 20- and even 30-year terms from most carriers. By 60, available term lengths begin shrinking, and by 65 to 70, most insurers limit new policies to 10- or 15-year terms.

Best for: Covering a mortgage, bridging the gap until retirement savings are accessible, or protecting a spouse until they qualify for Social Security or pension benefits.

Whole Life Insurance

Whole life provides permanent coverage that lasts your entire life as long as premiums are paid. Premiums are fixed at purchase and never increase. A portion of each premium builds cash value that grows at a guaranteed rate, typically 2% to 3%, on a tax-deferred basis. You can borrow against the cash value or surrender the policy for its accumulated value.

Best for: Lifelong coverage needs including estate planning, wealth transfer, charitable giving, or guaranteeing a death benefit regardless of when you die.

Universal Life Insurance

Universal life is a permanent policy with flexible premiums and an adjustable death benefit. Unlike whole life, you can increase or decrease your premium payments within limits and adjust the face amount over time. The cash value earns interest based on current market rates (with a guaranteed minimum floor). Indexed universal life ties cash value growth to a stock market index, while variable universal life lets you invest in sub-accounts similar to mutual funds.

Best for: People who want permanent coverage but need premium flexibility — for example, those with variable income or who want to pay more now and less in retirement. Universal life requires more active management than whole life.

Guaranteed Issue Life Insurance

Guaranteed issue policies require no medical exam and no health questions. If you are within the accepted age range, typically 50 to 85, you are approved automatically. Coverage amounts are small, usually $5,000 to $25,000, and premiums are the highest per dollar of any life insurance type. Most guaranteed issue policies include a graded death benefit — the full face value is not payable during the first two to three years. If you die from natural causes during the waiting period, beneficiaries receive only a return of premiums paid plus interest.

Best for: People with serious health conditions who cannot qualify for any other type of coverage. Guaranteed issue should be the option of last resort, not the first choice.

Final Expense (Burial) Insurance

Final expense insurance is a small whole life policy, typically $2,000 to $50,000, designed specifically to cover funeral costs, burial expenses, and small outstanding debts. It is available as both simplified issue and guaranteed issue. Premiums are affordable because the coverage amount is low, and the policy never expires. For many adults over 50 who simply want to make sure their family does not pay out of pocket for a funeral, this is the most practical option.

Best for: Covering funeral and end-of-life expenses without the higher costs of a large permanent policy.

Realistic Cost Expectations by Age and Health

The following are approximate monthly premiums for non-smoking males in good health. Women typically pay 15% to 25% less at every age. Smokers can expect to pay 50% to 100% more. These are industry averages — your actual quote depends on health, insurer, and state.

Age 50

• 20-year term, $250,000: $45 to $70 per month
• 20-year term, $500,000: $80 to $130 per month
• Whole life, $100,000: $250 to $400 per month
• Final expense, $15,000: $30 to $50 per month

Age 55

• 20-year term, $250,000: $70 to $110 per month
• 20-year term, $500,000: $130 to $210 per month
• Whole life, $100,000: $320 to $480 per month
• Final expense, $15,000: $40 to $65 per month

Age 60

• 20-year term, $250,000: $120 to $190 per month
• 10-year term, $500,000: $140 to $220 per month
• Whole life, $100,000: $350 to $550 per month
• Final expense, $15,000: $55 to $80 per month

Age 65

• 10-year term, $250,000: $140 to $230 per month
• Whole life, $50,000: $210 to $330 per month
• Guaranteed issue, $15,000: $90 to $130 per month
• Final expense, $15,000: $60 to $90 per month

The pattern is clear: every five years you wait, premiums jump substantially. A policy purchased at 50 can cost half or less of the same coverage purchased at 60. Acting sooner locks in a lower rate for the life of the policy.

Medical Exam vs. No-Exam Life Insurance

After 50, the choice between a policy that requires a medical exam and one that does not has significant cost and coverage implications. Understanding the difference helps you choose the right path.

Fully Underwritten (Medical Exam) Policies

Traditional fully underwritten policies require a paramedical exam — blood draw, urine sample, blood pressure check, height and weight measurement — along with a review of your medical records. The process takes four to eight weeks. The reward is the lowest available premiums and the highest coverage amounts, often $1 million or more.

• Lowest premiums — because the insurer has the most complete picture of your health
• Highest coverage limits — $500,000 to $1 million or more is standard
• Best risk classification — healthy applicants can qualify for preferred or preferred plus rates, the cheapest tiers available

Accelerated Underwriting (No-Exam, Traditional Rates)

Accelerated underwriting programs use algorithms and third-party data — prescription history, motor vehicle records, credit information, and electronic health records — to assess risk without an exam. Approved applicants receive the same rates as fully underwritten policyholders. Coverage can reach $1 million or more, and decisions often come within minutes to a few days.

The limitation is that only about 30% to 50% of applicants qualify. Factors like age over 55 to 60, high coverage requests, or a complex medical history can redirect you to the traditional exam path. If you are healthy and under 60, accelerated underwriting is worth trying first — you get the speed of no-exam with the pricing of fully underwritten coverage.

Simplified Issue (No-Exam, Health Questions)

Simplified issue replaces the medical exam with a questionnaire of 8 to 15 yes-or-no health questions. The insurer also pulls prescription history and Medical Information Bureau data. Premiums run 15% to 30% higher than fully underwritten policies, and coverage typically caps at $250,000 to $500,000. Approval can come the same day.

Simplified issue is the sweet spot for adults over 50 who want fast coverage, cannot pass or prefer to skip a medical exam, but are healthy enough to answer the health questions favorably. It offers immediate full death benefits with no waiting period — a critical advantage over guaranteed issue.

Guaranteed Issue (No-Exam, No Questions)

As described above, guaranteed issue asks no health questions and accepts everyone. Premiums are the highest, coverage is the smallest, and the graded death benefit means your beneficiary may not receive the full payout if you die within the first two to three years. Use this only if you have been declined for all other types of coverage.

How Health Conditions Affect Your Rates After 50

After 50, health becomes the second biggest factor in pricing after age. Insurers classify applicants into risk tiers that directly determine your premium. Understanding how common conditions are evaluated helps set realistic expectations.

• Controlled high blood pressure. If treated with medication and readings are within a normal range, most insurers offer standard rates. You may not qualify for preferred tiers but will not be declined.
• Type 2 diabetes. Well-managed diabetes with a healthy A1C level, typically under 7.0, can qualify for standard or slightly substandard rates from insurers that specialize in diabetic applicants. Uncontrolled diabetes leads to declines or very high premiums.
• High cholesterol. Treated with statins and within a controlled range, high cholesterol has minimal impact on most applications. Untreated or severely elevated levels trigger closer scrutiny.
• Cancer history. The type of cancer, stage at diagnosis, and time since treatment completion matter enormously. Early-stage cancers that have been in remission for five or more years may qualify for standard rates. Recent or advanced-stage cancers make fully underwritten coverage very difficult.
• Heart disease. A history of heart attack, bypass surgery, or stent placement typically results in substandard ratings with premiums 50% to 150% above standard. If the event was recent — within the last two to three years — some insurers will decline the application entirely.
• Tobacco use. Smokers pay 50% to 100% more than non-smokers at every age. Most insurers require 12 months tobacco-free to qualify for non-smoker rates. Some require two to five years.
• Obesity. BMI is a factor in underwriting. A BMI over 30 may move you to a standard rating, while a BMI over 40 can result in a decline or substandard classification. Each insurer has its own thresholds.

The critical insight is that insurers evaluate health conditions differently. One company might decline a 55-year-old with well-managed Type 2 diabetes while another offers standard rates. Working with an independent agent who can shop multiple carriers is the single best strategy for finding affordable coverage when health is a factor.

How Much Coverage Do You Actually Need?

At 50 and beyond, the amount of coverage you need is almost certainly less than what you needed at 35 with young children. The goal shifts from replacing decades of income to covering specific, calculable obligations. Add up the following to determine your number:

1. Remaining mortgage balance. If you want your spouse to keep the home free and clear, include the full payoff amount.
2. Outstanding debts. Car loans, credit cards, home equity lines, student loans (including Parent PLUS loans), and any other balances you do not want left to your estate.
3. Income replacement for your spouse. Calculate the gap between your spouse's income (or Social Security) and what they need to maintain their standard of living. Multiply by the number of years until they can fully support themselves from retirement accounts or survivor benefits.
4. Funeral and final expenses. Budget $10,000 to $15,000 for a traditional funeral with burial, or $3,000 to $5,000 for cremation.
5. Estate planning needs. If estate taxes will be owed, include enough to cover the estimated tax liability so heirs do not have to sell assets.

For a 50-year-old with a $200,000 mortgage balance, $30,000 in other debts, and a need for five years of income replacement for a spouse, the total might be $350,000 to $500,000. For a 60-year-old with the mortgage nearly paid off and a spouse close to Social Security eligibility, $100,000 to $200,000 may be sufficient. For someone at 65 who needs only funeral coverage, $15,000 to $25,000 does the job.

Converting a Term Policy to Permanent Coverage

If you purchased a term life policy in your 30s or 40s, it may be approaching expiration as you enter your 50s or 60s. Before that term expires, check your policy for a conversion privilege — the right to convert your term policy to a permanent (usually whole life) policy without a new medical exam or health questions.

Conversion is one of the most valuable but underused features in life insurance. It is especially important after 50 because:

• No new underwriting. If your health has deteriorated since you bought the term policy, conversion lets you get permanent coverage at standard rates without proving insurability again.
• Locks in coverage for life. Instead of losing coverage when your term expires, you transition to a policy that never expires.
• Partial conversion is possible. You can convert a portion of your term coverage. If you have a $500,000 term policy but only need $100,000 permanently, you can convert just that amount.

Important: Conversion deadlines vary by policy and insurer. Some allow conversion only within the first 10 to 15 years of the term or up to a specific age, often 65 or 70. The premium for the new permanent policy is based on your age at conversion — not your age when you bought the term policy — so converting earlier saves money. Review your term policy now to understand your conversion window.

Employer Life Insurance and the Retirement Gap

Many Americans rely on employer-provided group life insurance, which typically offers one to two times your annual salary at no cost, with the option to buy additional coverage. This feels like a safety net, but it creates a dangerous gap when you approach retirement.

• Coverage ends when you leave. Most employer group life insurance terminates when you retire, are laid off, or change jobs. At 55 or 60, suddenly losing $100,000 or $200,000 of coverage with no replacement can be devastating.
• Portability is limited and expensive. Some group plans offer portability or conversion options, but the rates are rarely competitive. You will almost always find better pricing through an individual policy.
• Coverage amounts decrease. Many employers reduce group life insurance for employees over 65 to 50% or even 25% of the original amount. Some eliminate it entirely at 70.
• Health may change. If you rely on employer coverage and then develop a health condition before retirement, you may find yourself uninsurable or facing very high premiums when you try to buy individual coverage.

The solution is simple: buy an individual policy while you are still working and healthy, so that your coverage continues regardless of your employment status. Think of employer life insurance as a bonus, not your plan.

Tips for Getting the Best Rates After 50

• Buy now, not later. Premiums increase every year, and the risk of a health change grows. A policy at 50 costs significantly less than the same coverage at 55, and the gap widens each year.
• Compare at least three to five quotes. Premiums for the same coverage can vary by 30% to 50% between companies. Use online comparison tools and work with an independent agent.
• Try accelerated underwriting first. If you are in good health, accelerated underwriting can get you fully underwritten rates without the exam. If you do not qualify, you can still take the exam.
• Right-size your coverage. Calculate your actual needs rather than guessing at a round number. Overbuying wastes premium dollars; underbuying leaves your family short.
• Consider stacking policies. Instead of one large policy, you can buy two smaller ones. A 10-year term policy to cover the mortgage and a small whole life policy for final expenses can be more cost-effective than a single large whole life policy.
• Do not default to guaranteed issue. Always apply for simplified issue or fully underwritten coverage first. Guaranteed issue premiums are 30% to 75% higher with smaller benefits and a waiting period. Reserve it for when nothing else is available.
• Review existing coverage. Check old policies, employer coverage, veterans' benefits, and any coverage through professional associations. You may have more protection than you realize.

The Bottom Line

Life insurance after 50 is not about replacing 30 years of income. It is about covering the specific financial obligations that outlive you — a mortgage, debts, income for a surviving spouse, funeral costs, or an estate tax bill. The options are broader than most people expect: term life for temporary needs, whole life and universal life for permanent coverage, final expense for small but essential protection, and simplified or guaranteed issue for those with health challenges.

The single most important thing you can do is act now. Premiums increase every year after 50, and the increases accelerate with age. A health change at 57 can make coverage at 58 dramatically more expensive — or unavailable. Lock in your rate while your health and age are working in your favor.

Compare quotes from multiple insurers, work with an independent agent, right-size your coverage to your actual needs, and never buy guaranteed issue if you can qualify for something better. A well-chosen policy purchased today gives you the certainty that your family will not face a financial crisis on top of an emotional one. That peace of mind is available at every age — and the best time to secure it is right now.