Is 50 too old for life insurance? No, but premiums increase significantly. Here's what you'll pay, your options, and whether life insurance still makes sense.
Complete guide to life insurance in Australia covering types, costs, and how to apply
Comprehensive premium breakdown by age, gender, and smoking status
Calculate your exact coverage needs with 3 proven methods and real Australian examples
If you're over 50 and wondering whether it's too late to get life insurance, here's the reassuring answer: no, it's not too late. Life insurance is available to Australians well into their 60s and even 70s, though premiums are significantly higher than what younger applicants pay.
But here's the honest truth: while coverage is available, the economics change dramatically after 50. Premiums that seemed theoretical in your 30s become very real costs in your 50s and 60s. The question shifts from "can I get coverage?" to "does it still make financial sense for my situation?"
This guide provides a clear-eyed look at life insurance for Australians over 50. We'll cover:
Important: This is general information only and does not take into account your individual circumstances. Life insurance needs vary significantly based on your financial obligations, health, and family situation. Consider seeking personal advice from a licensed financial adviser.
The single most important advice for anyone over 50 considering life insurance: if you're thinking about coverage, apply now, not later. Here's why:
Life insurance premiums increase exponentially with age, not linearly. On stepped premium structures, you'll pay approximately 7-10% more each year you delay. Waiting from age 50 to 55 doesn't add 50% to your premium - it roughly doubles it.
Real impact of delay:
Two years of delay at age 50 costs you an extra $480 per year in premiums - every year for the life of the policy.
The statistical reality is stark: most significant health conditions emerge in your 50s. High blood pressure, Type 2 diabetes, cholesterol issues, early-stage cancers, and cardiac problems all become dramatically more common after 50.
Once you have a diagnosis, you're no longer buying insurance "in case" something happens - you're buying insurance knowing something has already happened. This fundamentally changes your options:
The healthiest you'll ever be is today. Your insurability only decreases from here.
Younger applicants often receive coverage with minimal medical evidence - perhaps just a questionnaire and GP report. After 50, insurers typically require:
This isn't discriminatory - it's statistical. Insurers know that subclinical conditions (problems that haven't caused symptoms yet) are far more common after 50. The testing often reveals issues you didn't know you had, which then affect your premium.
Strategic tip: Get your health optimized before applying. If you're borderline on blood pressure or blood sugar, work with your GP to get readings into optimal ranges over 3-6 months before applying.
Compare real premiums from 8 Australian insurers based on your age and health profile. See what coverage actually costs - no obligation.
Get My QuoteLet's look at what you'll actually pay for life insurance at different ages. These figures represent stepped premiums (increasing annually) for $500,000 of life cover - a common amount for mortgage protection or family income replacement.
| Age | Male Non-Smoker | Male Smoker | Female Non-Smoker | Female Smoker |
|---|---|---|---|---|
| 50 | $200 | $395 | $145 | $285 |
| 52 | $240 | $475 | $175 | $345 |
| 55 | $310 | $620 | $225 | $445 |
| 58 | $395 | $790 | $285 | $570 |
| 60 | $485 | $975 | $350 | $700 |
| 62 | $580 | $1,165 | $420 | $840 |
| 65 | $760 | $1,530 | $550 | $1,100 |
| 68 | $1,050 | $2,100 | $760 | $1,520 |
| 70 | $1,350 | $2,700 | $980 | $1,960 |
Indicative stepped premiums based on major Australian insurer averages. Assumes standard health (no major pre-existing conditions), office-based occupation. Actual premiums vary by insurer, health status, and specific policy features.
The 50-60 decade is critical: Premiums more than double in this decade. A 50-year-old male pays $200/month; by 60, he pays $485/month - a 142% increase. This is the decade where the cost-benefit equation shifts most dramatically.
Smoking is increasingly punitive: While smoking adds roughly 100% to premiums at any age, the absolute cost becomes substantial. A 60-year-old male smoker pays $975/month - nearly $12,000 per year for $500k cover.
Women retain a significant advantage: Female premiums are 25-30% lower than male premiums across all age brackets, reflecting lower mortality rates at every age.
Post-65 becomes very expensive: By age 65, a healthy non-smoking male pays $760/month for $500k cover. Many people find this unsustainable and begin reducing or canceling coverage.
For a detailed breakdown of premiums across all ages, see our complete guide: Life Insurance Cost by Age in Australia.
Looking at monthly premiums is important, but understanding total outlay over time provides better context for decision-making.
Example: 50-year-old taking $500k cover to age 65 (15 years)
On stepped premiums:
That's $68,000 paid to maintain $500,000 of death benefit protection over 15 years. Whether this represents good value depends entirely on your circumstances:
The reality of being over 50 is that pre-existing conditions become more common. By age 55, roughly half of Australians have at least one chronic health condition. By 65, that figure rises to two-thirds.
Cardiovascular conditions (high blood pressure, high cholesterol):
Type 2 diabetes:
Mental health (depression, anxiety):
Cancer history:
Musculoskeletal (back pain, arthritis):
One counterintuitive benefit of being older: conditions you've had for years demonstrate stability. A 55-year-old with 10 years of well-controlled Type 2 diabetes may receive better underwriting outcomes than a 35-year-old newly diagnosed.
Insurers care deeply about:
Strategic tip: Gather your medical records before applying. A comprehensive GP letter showing years of stable control, consistent medication compliance, and no complications can significantly improve your underwriting outcome.
For comprehensive information on specific conditions, see our guide: Medical Conditions and Life Insurance in Australia.
One of the most common mistakes people over 50 make is conflating funeral insurance with life insurance. These are fundamentally different products with different purposes, costs, and value propositions.
| Feature | Funeral Insurance | Life Insurance |
|---|---|---|
| Typical cover amount | $5,000-$15,000 | $100,000-$2,000,000+ |
| Purpose | Funeral expenses only | Income replacement, mortgage, family protection |
| Medical underwriting | Minimal or none (guaranteed acceptance) | Full medical underwriting |
| Premium structure | Level premiums, often to age 99 | Stepped or level to age 65-75 |
| Cost-effectiveness | Often poor value over time | Generally better value per $1 cover |
| Maximum entry age | Often 79-85 | Usually 65-75 |
| Total premiums vs benefit | Often exceeds benefit if long-lived | Rarely exceeds benefit |
Comparison based on typical product features. Individual products vary significantly.
Funeral insurance sounds appealing: guaranteed acceptance, no medical questions, coverage to age 99. But the economics often don't work in your favor.
Example: A 60-year-old purchases $15,000 funeral insurance at $45/month.
Many funeral insurance policies result in total premiums exceeding the death benefit - especially if you live a long life (which is the outcome you want!).
Funeral insurance may be appropriate if:
Traditional life insurance with reduced sum insured: A 65-year-old can often get $50,000-$100,000 life cover for premiums similar to $15,000 funeral insurance - with far better value.
Self-insurance via savings: If you have $15,000 in savings, earmark it for funeral expenses. No premiums required, and if you live longer, you keep earning returns on that money.
Prepaid funerals: Some people prefer to prepay funeral expenses directly, eliminating the need for insurance entirely.
Choosing between stepped and level premiums is a critical decision at any age, but the calculus changes significantly after 50.
Stepped premiums: Start lower but increase each year based on your age. At 50+, expect 8-12% annual increases.
Level premiums: Fixed for an extended period (typically to age 65 or 70), then convert to stepped rates.
Level premiums are designed to save money over long periods - typically 20-30 years. After 50, you may not have enough years remaining in the level period to recoup the higher initial costs.
Example: 50-year-old with level premiums to age 65 (15 years)
Break-even analysis:
After 15 years, both convert to stepped rates at age 65. Total savings from level premiums: approximately $8,000-$12,000.
But: Level premiums at age 50 are typically 50-60% higher initially. If you cancel the policy before year 12 (for any reason - health, finances, changed circumstances), you'll have paid more for nothing.
Choose stepped premiums if:
Consider level premiums if:
For most people over 50, stepped premiums provide more flexibility.
Our quote calculator shows both premium structures side-by-side so you can see the real cost difference over time. Personalized to your age and coverage amount.
See My Premium OptionsMost Australians over 50 have life insurance through their superannuation fund - often without realizing it. This "default" coverage deserves careful review as you age.
Default super insurance usually includes:
Most super funds automatically reduce your coverage as you age:
Action required: Log into your super fund and check:
Lower cost: Super insurance benefits from group buying power - premiums are typically 30-40% lower than equivalent retail coverage.
Pre-tax funding: Premiums paid from super balance are effectively paid with pre-tax dollars (15% tax rate vs your marginal rate).
Easier acceptance: Many super funds offer "automatic acceptance" up to certain limits without medical underwriting.
TPD definitions: Super funds almost universally use "Any Occupation" TPD definitions - significantly weaker than "Own Occupation" available in retail policies.
Coverage limits: Many funds cap coverage at modest amounts that may be insufficient for your needs.
Lost on fund switching: If you change super funds, you may lose your insurance and need to reapply (potentially with health issues).
For a complete comparison of retail vs super insurance, see our guide: Retail Life Insurance vs Super.
Many advisers recommend a hybrid approach:
This provides the cost benefits of super insurance while filling the protection gaps with retail coverage.
As you move through your 60s and into your 70s, life insurance options narrow but don't disappear entirely.
At 60, most insurance options remain available:
Key consideration: Age 60 is often the last opportunity to obtain comprehensive coverage with reasonable premiums. If you have outstanding obligations (mortgage, dependent spouse), act now.
At 65, options begin to narrow:
What you can typically obtain:
After 70, traditional life insurance becomes difficult to obtain:
Available options:
For many people, the financially rational decision by age 65-70 is to reduce or cancel life insurance:
Consider canceling if:
Consider maintaining if:
There's no shame in concluding that life insurance has served its purpose and is no longer needed. That's actually a sign of successful financial planning.
This is the fundamental question every over-50 Australian should ask. Life insurance exists to protect against financial catastrophe if you die - but after 50, the nature of that protection often changes.
Life insurance replaces income and pays debts. The classic needs are:
By your 50s, many of these needs have changed:
"Self-insurance" means having enough assets to cover the same needs life insurance would address. Consider:
Your assets:
Your obligations:
If your assets exceed your obligations by a comfortable margin, you may be "self-insured" and life insurance becomes optional rather than essential.
You still need coverage if:
Coverage is optional if:
Yes, if you have financial dependents or significant debts that would burden survivors. At 50, premiums are higher than at younger ages but remain affordable for most - approximately $200-300/month for $500k cover for a healthy non-smoker. The key question isn't "is it worth it at 50" but "do I have financial obligations that would cause hardship if I died?" If yes, coverage is still valuable.
Most major insurers accept new applications up to age 65-70 for traditional life insurance. Some specialist insurers and funeral insurance products accept applications up to age 79-85. After 70, options are limited, premiums are very high, and coverage amounts are typically capped at $100,000-$500,000. If you're in your late 60s and considering coverage, apply sooner rather than later.
Not usually. Funeral insurance is often poor value - total premiums frequently exceed the death benefit if you live a long life. A 60-year-old can typically obtain $50,000-$100,000 of traditional life insurance for similar premiums to $15,000 of funeral insurance, providing far better value. Funeral insurance makes sense only if you've been declined for traditional coverage due to health conditions, or you're over 75 and have no other options.
Yes, but expect premium loadings. Type 2 diabetes with good control (HbA1c below 7%, no complications) typically adds 50-100% to standard premiums. Type 1 diabetes adds 100-200%. With poor control or complications, you may face higher loadings or decline. Key success factors: stable HbA1c readings over 6+ months, no complications (eye, kidney, nerve damage), medication compliance documented, and healthy lifestyle factors (non-smoker, reasonable BMI).
Review it carefully. Super insurance often automatically reduces after age 60 and may not provide adequate coverage. Check: your current coverage amount, any age-based reduction schedule, when coverage ends entirely (often 65-70), and the TPD definition (likely "Any Occupation" which is weaker). If your super insurance is adequate and still active, it may be your cheapest option. If it's insufficient, consider retail top-up coverage.
If you have stepped premiums, they continue increasing annually (expect 10-15% increases per year after 65). If you have level premiums, they typically convert to stepped rates at 65 - causing a significant jump. For example, a level premium of $110/month might become $760/month stepped at age 65. Plan for this conversion if you have level premiums approaching the end of the level period.
Life insurance after 50 in Australia is absolutely available - but it requires honest assessment of your needs, realistic expectations about costs, and strategic timing of your application.
Key takeaways:
Act now, not later: Every year you delay adds significant cost and reduces options. If you need coverage, apply while you're as healthy as possible.
Understand the costs: Premiums at 50 are roughly 3-4x what a 30-year-old pays. By 65, they're 15x or more. Budget accordingly.
Pre-existing conditions matter more: Over 50, most people have some health conditions. Optimize your health before applying, and gather comprehensive medical documentation.
Funeral insurance is not a substitute: For most people, traditional life insurance with reduced sum insured provides better value than funeral-specific products.
Review your super insurance: It may be your cheapest option, but check for age-based reductions and coverage limitations.
Consider if you still need coverage: By 60-65, many Australians are effectively self-insured through accumulated wealth. Life insurance is no longer mandatory - it's a choice based on your specific circumstances.
The most important decision is whether life insurance still makes sense for your situation. If you have financial obligations that would burden survivors, coverage remains valuable. If you've achieved financial independence and have no dependents, the premium dollars might be better directed elsewhere.
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Authorised Representative Number: 1244847 | Australian Financial Services Licence: 246623