Turning 50 brings many realizations, but one of the most jarring involves life insurance. If you’ve been putting off buying coverage or thinking about increasing your policy, you’re about to discover that the golden years come with golden-priced premiums. The cost of life insurance doesn’t just gradually increase after 50, it can jump dramatically, sometimes doubling or tripling within a decade.

The numbers tell the story starkly. A healthy 50-year-old man might pay around $834 annually for a $500,000 term policy, but that same coverage costs $4,575 by age 60. That’s a 448% increase in just ten years. For women, the jump is slightly less severe but still substantial, from $655 at age 50 to $3,187 at age 60.

Understanding why this happens and what your remaining options are can help you make informed decisions before it’s too late to secure affordable coverage.

The Age Penalty: Why 50 Is the Turning Point

Life insurance companies base premiums on life expectancy and risk assessment. As you age, your statistical likelihood of filing a claim increases, and insurers price accordingly. But the jump at 50 isn’t arbitrary. Insurance actuaries have identified this age as when health risks begin accelerating significantly.

Your 50s are when chronic conditions like diabetes, heart disease, and cancer rates start climbing. Even if you’re healthy today, insurers know that the next decade brings increased medical challenges for most people. They’re not just pricing your current health; they’re pricing the statistical probability of your health ten or twenty years from now.

The Compounding Effect of Waiting

Here’s the harsh math: if a 30-year-old locks in a 25-year term policy, they pay $57 monthly for coverage that remains constant until age 55. But if someone waits until age 48 to buy the same 25-year term, they’ll pay $204.50 monthly and keep coverage until age 73. The person who waited pays 359% more per month.

This compounding effect means that every year you delay purchasing life insurance after 40 becomes exponentially more expensive. By 50, you’ve missed the window for truly affordable coverage.

Your Shrinking Menu of Options

Traditional term life insurance becomes increasingly limited and expensive after 50. Many insurers won’t offer 30-year terms to applicants over 50, and those that do charge premium rates that can strain most budgets. Your realistic options narrow to three main categories, each with distinct trade-offs.

Traditional Underwritten Policies: The Gold Standard with Gold Prices

If you’re in excellent health, you can still qualify for traditional term or whole life policies. These require medical exams, blood work, and sometimes additional testing, but they offer the most coverage for the lowest relative cost among your available options.

A $1,000,000 20-year term policy costs about $146 monthly for a 50-year-old male in good health. While expensive compared to younger ages, this still provides substantial coverage if you can qualify medically and afford the premiums.

Simplified Issue: Skip the Exam, Pay More

Simplified issue policies eliminate the medical exam but require you to answer health questions. This middle ground works well for people with minor health issues who might not qualify for preferred rates but don’t want to pay guaranteed issue prices.

These policies typically cost 20-40% more than fully underwritten coverage but offer higher death benefits than guaranteed issue options. Coverage amounts usually range from $25,000 to $300,000, depending on your age and health responses.

When Health Limits Your Choices: Final Expense Insurance

For many people over 50, especially those with chronic health conditions, final expense insurance becomes the most realistic option. Also called burial insurance, these policies specifically target end-of-life costs rather than income replacement.

Final expense policies offer several advantages for older adults. Most require no medical exam and ask only basic health questions. Coverage amounts typically range from $2,000 to $25,000, with premiums usually falling between $30-$70 monthly for most seniors. The coverage never expires as long as premiums are paid, and rates are locked in.

Understanding the Trade-offs

These policies aren’t cheap relative to the coverage provided. A $10,000 final expense policy might cost $50 monthly, which equals $600 annually for $10,000 in coverage. That’s a much higher rate than traditional life insurance, but it serves a different purpose.

The average funeral in 2024 exceeded $9,000, according to the National Funeral Directors Association. A final expense policy ensures your family isn’t burdened with these costs during an emotional time, plus it can cover outstanding medical bills, credit card debt, and other immediate expenses.

Guaranteed Issue: Last Resort Protection

For people with serious health conditions who can’t qualify for other coverage, guaranteed issue life insurance provides a safety net. These policies accept everyone within the eligible age range (typically 50-85) with no health questions asked.

The limitations are significant. Coverage is usually capped at $25,000, premiums are high relative to the benefit, and most policies include a two-year waiting period. If you die from natural causes within the first two years, beneficiaries receive only the premiums paid plus interest rather than the full death benefit.

Despite these limitations, guaranteed issue policies serve an important role. They provide coverage for people who would otherwise be uninsurable and ensure that end-of-life expenses don’t create financial hardship for survivors.

The Waiting Period Reality

The two-year waiting period exists to prevent people with terminal illnesses from purchasing policies shortly before death. However, if death occurs due to an accident during this period, the full death benefit is paid immediately. After the waiting period ends, the benefit is paid regardless of the cause of death.

Whole Life vs. Term: The Over-50 Equation Changes

The traditional advice favoring term life insurance becomes more complicated after 50. While term policies still offer more coverage per dollar, the premium increases make them less attractive for long-term planning.

Whole life insurance premiums increase more gradually with age. A $500,000 whole life policy for a 50-year-old nonsmoking man costs about $6,698 annually and increases to $10,390 at age 60. That’s a 55% increase compared to the 448% jump in term premiums over the same period.

For people planning to carry coverage into their 70s and beyond, whole life insurance might provide better long-term value despite higher initial premiums.

Strategic Moves for the Over-50 Crowd

If you’re approaching or past 50 without adequate life insurance, time is your enemy, but you still have moves to make.

Assess Your Actual Needs

Your insurance needs likely differ from your 30s or 40s. If your mortgage is nearly paid off and your children are financially independent, you might need less coverage than you originally thought. Focus on specific goals: replacing lost income for a surviving spouse, covering final expenses, or leaving a financial legacy.

Lock in What You Can Get

Even if you can’t afford the coverage you ideally want, securing some coverage while you’re still healthy protects against future health changes that could make you uninsurable. You can always add more coverage later if your financial situation improves.

Consider Life Insurance Through Work

Many employers offer group life insurance that doesn’t require medical underwriting. While these policies typically aren’t portable if you change jobs, they can provide valuable coverage while you’re employed. Some employers allow you to purchase additional voluntary coverage at group rates.

The Bottom Line: Act Now or Pay Later

Life insurance after 50 requires a fundamental shift in thinking. You’re no longer shopping for the cheapest coverage; you’re securing the best protection you can still qualify for and afford. The perfect policy you could have bought at 35 is no longer available, but adequate protection still exists if you’re willing to pay the price.

The key is understanding that “expensive” coverage today will seem cheap compared to what the same coverage will cost in five years, assuming you can still qualify for it at all. Your 50s might be when premiums spike, but they’re also your last opportunity to secure meaningful protection before options shrink even further.