News & Trending Insurance News

10 Things Anyone Over 50 Must Know About Life Insurance

Yes, you can still qualify for life insurance during middle age. Here is what you need to know.

pensioners sitting at desk signing
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Some people think it’s too late to buy life insurance after age 50, but that isn’t true. While there are certain challenges to getting life insurance after this age, there are still plenty of options.

Life insurance can be a great tool for making sure your loved ones can pay their bills and maybe even get ahead financially after you are gone. Here is what everyone over 50 must know about life insurance.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

There are good reasons to purchase life insurance after 50

thodonal/Adobe life insurance

Life insurance can help ensure your dependents are taken care of when you're gone. If you die unexpectedly, those who rely on you financially may struggle unless they have this coverage.

Life insurance can bridge the gap financially for those you leave behind, helping them with daily expenses and possibly offering enough money to help them move beyond living paycheck to paycheck.

Or, you can purchase a more modest policy that will help cover your funeral costs.

You have to decide which type of life insurance policy you need

Photographee.eu/Adobe senior people signing life insurance

There are many types of life insurance policies that fall into two general categories: term life insurance and permanent life insurance. Depending on your needs and budget, you may prefer one type over another.

Term life insurance is a policy that is in effect for a set amount of time. You pay premiums monthly or annually in exchange for coverage during the policy term. Once the period is up, you are no longer covered.

Permanent life insurance does not expire as long as you pay the premiums. This policy also offers cash value that builds up over the years and that you can withdraw.

Term life insurance usually costs less than permanent life insurance.

Premiums will likely cost you more

Rawpixel.com/Adobe indian family interested in life insurance

Yes, life insurance premiums will cost you more when you are older. Age and health markers are two of the big risk factors insurance companies use to calculate premiums.

NerdWallet estimates that a 20-year $500,000 term-life policy for a 50-year-old in excellent health will cost $819 a year for men and $642 a year for women.

You will have to decide if the higher cost of purchasing life insurance at this age is worth the peace of mind.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

You might still qualify for a long-duration policy

Day Of Victory Stu./Adobe senior couple walking on the beach

Some people may believe that you can’t qualify for long-term policies once you reach 50. But it’s still possible to get a long-duration policy at that age.

The average life expectancy is 74.8 years for men and 80.2 years for women, according to the Centers for Disease Control and Prevention. While your age will be considered during the underwriting process, it’s not the only factor that goes into determining the cost and length of your policy.

A shorter term can save you money

izzuan/Adobe umbrella and wooden dolls

Term life insurance can be purchased for a set period, such as 10 to 30 years. These policies are much less expensive than whole-life policies because they expire after the term is up.

If you're just looking for coverage for a short period, term life can be the way to go.

You might have an option to add 'living benefits'

Rawpixel.com/Adobe elderly man sitting on wheelchair looking at life insurance

Living benefits on a life insurance policy are riders that offer financial benefits you can tap into while you are still living. You can use the money to pay for things like care associated with chronic illnesses, permanent disabilities, or terminal illnesses.

You will have to pay extra for living benefits, but this type of rider could provide you with financial support during specific types of life events.

You might be able to skip the health exam

Nutlegal/Adobe embracing each other with love

The majority of life insurance policies require you to fill out a health questionnaire and undergo a medical exam. But some policies do not require an exam and offer a fast-track route to getting life insurance.

You will still need to provide an accurate personal medical history and answer lifestyle risk questions, but these policies are issued much faster than those that go through the traditional underwriting policy.

This accelerated process will likely come at a higher cost and you may be limited in the amount of coverage you are able to get.

You can have multiple policies at one time

Deen Jacobs/peopleimages.com/Adobe senior couple on sofa with bills

If you have an existing life insurance policy but you want to add more coverage, you are allowed to have multiple policies at once.

In some cases, this strategy can increase your total coverage while keeping overall costs lower.

Life insurance benefits are generally tax-free

N Lawrenson/peopleimages.com/Adobe An older couple looking at computer

Life insurance proceeds generally are not taxed as income. This means the loved ones you leave behind will receive the money without having to pay taxes on it.

Many people take comfort in knowing that all of the death benefit will go to the people they are trying to protect.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

You may not need life insurance

Rawpixel.com/Adobe reading life insurance form

While life insurance can be part of a smart financial plan, it’s not necessary for everyone. If you've built enough wealth to cover your final expenses and care for any remaining dependents, it’s unlikely that you need life insurance.

You could choose instead to save the money you would otherwise spend on premiums and use it for your personal needs. Or, you could earmark the savings for leaving an inheritance or making a charitable donation at your time of death.

Bottom line

thodonal/Adobe life insurance

Even if you have a history of health issues or lifestyle factors that make getting a traditional policy difficult, you still might be able to find a life insurance policy that will boost the bank account of loved ones.

Life insurance isn’t necessary for everyone, but many will find that it can provide much-needed financial support to those they leave behind.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details