Is 50 too old to get life insurance?

It is not too late to get life insurance at 50, but it is more expensive than it would have been at a younger age, and you should consider your health status [1, 2].

Is life insurance worth it after 50?

One of the most important reasons to have life insurance in your 50s is to ensure your family's financial security. If you're still the primary breadwinner, your passing could leave a significant gap in your family's income.

What is the 7 year rule for life insurance?

The 'seven-pay' test

The IRS uses the “seven-pay” test to determine whether to convert a life insurance policy into a MEC. If you put too much money into your policy in the first seven years, it becomes a modified endowment contract.

What age is too late to get life insurance?

There's generally no strict legal age limit for buying life insurance, but insurers set their own maximums, often around 80-85 for term/whole life, with specialized final expense or guaranteed issue plans available for seniors up to age 85+ or even 90, though options decrease and costs rise significantly with age, making it best to act sooner for better coverage. 

Do I get my money back if I outlive my life insurance?

You generally can't get a full refund from a lapsed life insurance policy, especially term life, but you might recover some value from policies with cash value, like whole life, by surrendering for a reduced amount or using non-forfeiture options (paid-up value). For term policies, premiums are usually gone, but reinstatement is often possible, though it may require health questions and paying back premiums plus interest. Always contact the insurer quickly to explore options like reinstatement or cashing out the policy's built-up value. 

Life insurance in your 50s and 60s

What is the best life insurance for over 50?

Best Life Insurance Companies for Seniors of December 2025

• Best Life Insurance Companies for Seniors.
• Best Overall: State Farm.
• Best Term: MassMutual.
• Best Universal: Pacific Life.
• Best Whole: USAA.
• Best for Final Expense Policies: Mutual of Omaha.
• Best for No-Exam Policies: Nationwide.
• Best for Coverage Amounts: Protective.

Do you pay taxes on life insurance?

Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren't includable in gross income and you don't have to report them. However, any interest you receive is taxable and you should report it as interest received. See Topic 403 for more information about interest.

How much can you inherit from your parents without paying taxes?

While state laws differ for inheritance taxes, an inheritance must exceed a certain threshold to be considered taxable. For federal estate taxes as of 2024, if the total estate is under $13.61 million for an individual or $27.22 million for a married couple, there's no need to worry about estate taxes.

What does Warren Buffett say about life insurance?

Berkshire Hathaway owns companies like GEICO and General Re, and it invests heavily in life insurance operations. Insurance is not just a side business for Buffett. It is the foundation of his success. Buffett understands that insurance is about managing risk fairly and building trust.

Which policy is best at age 50?

Term Life Insurance is one of the most affordable options. It offers a high sum assured for a low premium but only covers a fixed period, such as 10, 15, or 20 years.

What does $9.95 a month get you with Colonial Penn?

For $9.95 a month from Colonial Penn, you buy one "unit" of guaranteed acceptance whole life insurance, not a specific dollar amount of coverage, with the actual benefit amount depending on your age, gender, and state, generally for ages 50-85, featuring a two-year waiting period for natural deaths and no medical exams. 

Why is whole life insurance a money trap?

Whole life insurance builds cash value, but here's the catch: It can take years—sometimes over a decade—before the cash value grows into a meaningful amount. Initially, most of your premiums are allocated to fees, commissions, and insurance costs.

What does Suze Orman say about life insurance?

Suze believes that permanent life insurance such as whole life or indexed universal life (IUL) are bad investments, much like other financial entertainers such as Dave Ramsey. In her opinion, she feels you would be better off investing the money you save by buying cheaper term life, than by investing in life insurance.

How much life insurance should I have at age 50?

At 50, you need enough life insurance to cover debts, future expenses (like college), and replace income for dependents, often 10-15 times your income, but using methods like the DIME (Debt, Income, Mortgage, Education) or subtracting assets from total needs provides a more personalized, accurate figure than just income multipliers. Consider how long your family needs support (e.g., until kids are independent), factor in your spouse's income, and adjust for potential income growth and inflation. 

What happens when you cash out a life insurance policy?

Cashing out a life insurance policy, usually a permanent one with cash value, means you receive funds but forfeit the death benefit, potentially incurring surrender charges, fees, and significant taxes on gains, reducing your payout; options include taking a loan (tax-deferred, interest-bearing), a withdrawal (taxable if exceeding premiums paid), or surrendering the entire policy (ending coverage for the net cash value). 

What is the best life insurance company?

• Best Life Insurance Companies.
• Best Overall: MassMutual.
• Best Whole: USAA.
• Best for No-Exam Policies: Nationwide.
• Best Term: Protective.
• Best for Customer Experience: Northwestern Mutual.
• Best for Seniors: State Farm.
• Best Universal: Pacific Life.

Can IRS take life insurance from beneficiary?

Life Insurance

If you are the beneficiary of such a policy and owe the IRS, the agency can levy those proceeds. Additionally, if you have a life insurance policy with no named beneficiary and owe taxes, the IRS can seize the policy funds before they are distributed to your next of kin.

What death is not covered by life insurance?

Life insurance typically excludes deaths from suicide within the first one to two years (suicide clause), deaths during illegal activities, those resulting from misrepresentation on the application, murder by a beneficiary, and sometimes deaths from extreme sports or war, though coverage for certain exclusions like war or high-risk activities might be added with riders. Always read your specific policy for exact exclusions, as they vary by insurer.
 

What does Dave Ramsey say about term life insurance?

Dave Ramsey strongly advocates for term life insurance, calling it the only smart option, to provide income replacement for dependents during a specific period, typically 10-12 times your annual income for a 15-20 year term, while avoiding expensive permanent policies that bundle investing with insurance. He stresses that life insurance isn't for wealth transfer but a temporary safety net, allowing you to invest the savings to become self-insured by the time the term ends. 

What is the best type of life insurance for over 50?

Whole life insurance

It includes a death benefit and a cash value component, which can build value over time. People over 50 can often tap into your cash value while you're still alive by borrowing or withdrawing from it. Aflac offers whole life insurance with lifelong coverage.

What not to say when applying for life insurance?

• Avoid Providing Inaccurate Health Information. ...
• Don't Underestimate Lifestyle Risks. ...
• Avoid Exaggerating Income or Financial Status. ...
• Don't Hide Smoking or Substance Use. ...
• Avoid Making Assumptions About Coverage Needs. ...
• Don't Rush Through the Application.

Is it worth getting whole life insurance at 50?

You might be wondering if it's too late to get life insurance now that you're older. The truth is, it's not. In fact, whole life insurance for seniors can still offer long-term value, some peace of mind, and financial protection for your loved ones.

Who is the best company to go with for life insurance?

Read on to see which life insurance policies we rated the highest in 2025:

• Vitality. myTribe rating: 5.0. ...
• Aviva. myTribe rating: 5.0. ...
• Scottish Widows. myTribe rating: 5.0. ...
• LV= myTribe rating: 5.0. ...
• Legal & General. myTribe rating: 5.0. ...
• Zurich. myTribe rating: 4.5. ...
• Royal London. myTribe rating: 4.5. ...
• HSBC. myTribe rating: 4.5.