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In your 50s, life insurance can be an important tool to help provide financial security for you and your family. You may have dependents (children, parents, or both) or outstanding debts (mortgage), or you may want to ensure that funeral expenses and other end-of-life costs are covered. Term life insurance can offer a cost-effective way to provide your loved ones with financial protection, especially if permanent coverage is unnecessary or unaffordable.
Term life insurance provides death benefit protection over a specified period of time, provided premiums are paid as required. Also, some term policies offer a level premium for the protection period.
For example, with a 20-year $500,000 term life insurance policy, the required premiums remain level during the 20-year term, but, afterwards can increase substantially, Your family or other beneficiary in turn gets the financial protection of receiving $500,000 should you pass away during the 20-year term. And, if you are willing to pay the increased premiums, that protection can be extended.
This is distinct from permanent life insurance, which offers lifetime protection, as long as premium obligations are met, as well as other kinds of benefits, including the accumulation of cash value, which grows tax-deferred. Indeed, while term insurance works well for immediate protection needs, if you're looking at estate planning, legacy goals, or coverage past age 75, permanent life insurance might be more cost-effective in the long run despite higher initial premiums.
Now, many term policies offer a chance to convert to a permanent policy.
“Price is important, but convertibility is an important consideration,” said Kenneth Podell, a senior partner at Broad Street Financial in Radnor, Pennsylvania. “If your fortunes increase, you may want to convert."
If you don’t convert at the end of the term, the policy may expire and no death benefit is paid. This is why many people in their 50s consider guaranteed universal life insurance as an alternative if they need protection that can extend into their 70s and beyond.
And while many people have group life insurance through their employer, it's often limited and may disappear when they leave their job. As such, financial professionals sometimes recommend that those with employer group coverage consider purchasing private term life insurance coverage as well to ensure that they have coverage that will continue if they separate from their employer. (Learn more: Why group life insurance may not be enough)
Weighing options: Coverage and length
When choosing term life insurance in your 50s, it’s important to weigh factors like your health, budget, and desired coverage length or level premium payment length. Or, if there are any specific situations you need coverage for, like a business obligation or divorce. (Learn more: 4 situations to consider the benefits of term life insurance)
Premiums will be higher than at younger ages, and your health status plays a bigger role in qualification and rates. Assess how much coverage you truly need — balancing affordability and the financial well-being of your beneficiaries.
For people in their 50s, common term lengths offered by insurers include 10-, 15-, and sometimes 20-year policies. What’s right for you will likely depend on anticipated financial obligations.
For example:
- A 10-year term policy might be good for short-term needs or those approaching retirement.
- A 15- or 20-year term policy might be suitable if you have a long mortgage or a young family and want to ensure coverage until your children are financially independent.
Coverage amounts and calculation methods
Estimating your coverage needs in your fifties involves considering outstanding debts, income replacement, and future expenses.
So:
- Add up your debts (like mortgages and loans).
- Estimate your income replacement (typically 5-10 times your annual salary).
- Consider future costs your family may face (college, health care, final expenses).
- Adjust for any existing savings or life insurance.
To help sort out these considerations …
Additionally, especially for those in midlife with family obligations and some existing assets, some people go for a mix of term and permanent policies, called a ladder strategy. A financial professional can help sort out the various options.
Connect with a MassMutual financial professional
When medical exams are required
Most traditional term life insurance policies in your 50s require a medical exam involving blood work and vital statistics. This enables insurers to evaluate health risks accurately and offer lower premiums to healthier applicants.
If you’d rather skip a medical exam or have health concerns, some insurance companies offer coverage options without medical tests but often they have more questions about your health. And, typically, such coverage comes with much higher premiums, lower coverage limits, and the inability to convert your term coverage to permanent life coverage at a later date. These kinds of policies may also have waiting periods before full benefits are paid. (Learn more: Options for insurance in your later years)
Consider these trade-offs carefully against your health and financial needs.
Premium increases with age and health factors
As you enter your 50s, premiums for life insurance generally rise significantly due to increased risk of health issues. Even small health problems can affect your eligibility and rates. Insurers use age, gender, medical history, and even lifestyle habits to determine premiums.
Premiums in your 50s can be almost double what they are in your 40s for similar coverage.
For example:1
- At 2026 premium rates, a 45-year-old non-smoking man at an ultra-preferred rating would pay a premium of $245 a year for a $250,000 policy providing coverage for 10 years at a level premium.
- If purchased at age 55, that same policy would cost $513 a year in premiums.
Higher coverage amounts and longer term-lengths both increase premiums.
- For instance, if the 10-year policy above offered $500,000 in coverage, the annual premium for the 45-year-old would be $415 and for the 55-year-old $930.
- Extend that $500,000 coverage to 20 years and the 45-year-old would have an annual premium of $660 and the 55-year-old $1,580.
Balancing your needs and budget is key.
Choosing the best term life insurance plan for your 50s
Because of the price considerations, many people think term life insurance coverage is fairly standard from company to company.
It’s not.
The value of a term life insurance policy can vary widely, depending on:
- Features offered and chosen for the policy. Some life insurance companies will allow “riders” ― contract provisions that allow for certain added features in exchange for a higher premium ― to be added to term policies. For instance, a “return of premium” rider could be attached that would allow for money to be returned to the policyowner at the end of the term, something that normally wouldn’t happen at the expiration of a term policy.
- Provisions for renewing or converting the policy to permanent insurance. Term policies can also come with provisions or riders allowing some or all of their policy value to be converted into a whole life or another type of permanent life insurance policy. (Learn more: Pros and cons of converting term life to whole life)
- The company backing the policy. When it comes to conversion, the range of permanent insurance policies available as well as conversion terms will vary from insurer to insurer. The financial strength and track record of the insurance company is also vital. Insurance is a long-term commitment. You want a company that has the security and history to meet that commitment. (MassMutual was established in 1851 and its most recent financial ratings can be found here.)
“If the face amount the client is buying is large, pay up for quality,” said Podell. “I’ve seen too many companies change what they are offering and it is usually for the worse.”
He also noted that you should ask a number of questions about convertibility and costs when looking for affordable term life insurance for 50-somethings.
“Can you convert? What can you convert to? What do the rates look like after the guarantee period and are they competitive? Can you convert to survivorship (second to die) coverage with your spouse getting underwritten?”
The answers to these questions will likely differ depending on the insurance company.
So, in the end, term insurance has plenty of differences from company to company that make it wise to compare beyond the basic price. Shop around or talk with a financial professional about the types of term life insurance policies and options that make sense for your situation. (Related: Comparing differences in term life insurance)
Conclusion
If you have complicated health issues, estate planning questions, or are unsure about the right policy type, consulting a financial professional might be advisable.
Indeed, term life insurance in your 50s requires careful consideration, but the right plan can provide peace of mind and vital financial security for your loved ones. Start by evaluating your needs to figure out what might be the best fit.
FAQs related to shopping for term life insurance in your 50s
Q: What happens if I outlive my term life insurance policy?
A: The policy expires and no death benefit is paid. However, many policies offer conversion options that let you switch to permanent coverage before the term coverage expires, often without a new medical exam, or policies that can continue beyond the level premium payment period, but with rates that increase annually and can make the coverage unaffordable.
Q: Can I get term life insurance in my 50s without a medical exam?
A: Some companies offer "no exam" policies, but they typically cost significantly more, provide lower coverage amounts, and have limited (if any) conversion options. If you're in reasonable health, taking the exam usually results in better rates.
Q: How much term life insurance do I need at age 50+?
A: A common guideline is 5-10 times your annual income, plus outstanding debts. However, your specific needs depend on your dependents, mortgage, assets, household expenses, liabilities, and financial goals. (How much life insurance do I need?)
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___________1 Quotes based on MassMutual 10-year and 20-year term policies.
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