Turning 50 is a natural time to review your life insurance. Your mortgage may be shrinking, your children may be becoming financially independent, and your priorities are shifting. At the same time, premiums increase significantly with age - making it important to ensure you have the right level of cover at the right price. Compare life insurance options for over 50s below.
Pinnacle Life offers competitive premiums through a direct online model, which can be particularly beneficial for over 50s looking to keep costs manageable - click below to get an estimate.
Life insurance needs change considerably once you reach your 50s. For many Australians, this decade brings a shift in financial responsibilities - the mortgage is more manageable, children are leaving home or becoming financially independent, and retirement planning becomes a greater focus. At the same time, premiums on existing life insurance policies often increase sharply after age 50, prompting many people to reassess whether their current cover still makes sense.
One of the most important decisions for over 50s is whether to maintain full life cover or transition to a lower level of protection. If your mortgage is largely paid off and your dependants are no longer reliant on your income, you may not need the same sum insured you took out 20 years ago. Reducing your cover can deliver significant premium savings. The Sorted life insurance guide provides a helpful framework for reassessing your needs at different life stages.
For those who still need cover - whether to protect a remaining mortgage, provide for a dependent spouse, fund estate obligations, or simply cover funeral costs - there are options designed specifically for older Australians. Funeral insurance, which typically provides a lump sum of $10,000 to $25,000, is a popular alternative to full life cover for those whose primary concern is not leaving funeral costs to their family. The Consumer Protection Australian website has information on understanding insurance product terms.
Whether you are reviewing an existing policy, shopping for new cover, or considering cancelling your life insurance altogether, the key is to make an informed decision based on your current circumstances rather than simply rolling over a policy you took out decades ago. With premiums rising and financial needs shifting, your 50s are the right time for a thorough review.
Understanding how your needs change after 50 helps you make informed decisions about life insurance cover.
| Consideration | Importance | Details | Insurance Impact |
|---|---|---|---|
| Rising Premium Costs | High | Life insurance premiums increase with age because the statistical risk of death rises. After 50, annual premium increases of 5-10% are common, and the rate of increase accelerates through your 60s. A policy that cost $100 per month at age 40 could cost $300-500 per month by age 60, even without any change in cover level. | Compare premiums across multiple providers to ensure you are getting competitive rates. Consider whether reducing your sum insured, switching to decreasing term cover, or transitioning to funeral insurance could bring premiums to a more sustainable level. |
| Changing Financial Obligations | Moderate | By your 50s, your financial situation is often very different from when you first took out life insurance. Your mortgage may be significantly reduced, children may be financially independent, and you may have built up savings and investments. The level of cover you needed at 35 may no longer be appropriate. | Review your actual financial obligations and dependants. If your mortgage is $200,000 instead of $600,000 and your children are working, reducing your sum insured from $600,000 to $250,000 could cut your premiums substantially while still providing meaningful protection. |
| Health Changes and Insurability | High | Health conditions become more common after 50 - diabetes, heart conditions, cancer history, and other issues can make obtaining new life insurance more difficult or expensive. If you already hold a policy, your insurer cannot change the terms or cancel your cover due to health changes (provided you disclosed everything accurately at the time of application). | Think carefully before cancelling an existing policy that was underwritten when you were healthier. A new application will require fresh health disclosures, and conditions that have developed since your original application may result in exclusions, loadings, or even decline. |
| Funeral and End-of-Life Costs | Moderate | The average cost of a funeral in Australia is between $8,000 and $15,000, and costs continue to rise. Many over 50s want to ensure their family is not burdened with these costs. Funeral insurance provides a smaller, targeted payout specifically for this purpose. | Funeral insurance typically provides $10,000 to $25,000 in cover and is significantly cheaper than full life insurance. Some products offer guaranteed acceptance with no medical questions, although these often have a stand-down period of 12-24 months. |
| Partner and Spouse Dependency | Moderate | Even if children are independent, your spouse or partner may depend on your income or superannuation contributions. Losing one income in retirement can significantly affect the surviving partner's quality of life, particularly if they have limited retirement savings of their own. | Consider whether your partner would need financial support if you were to pass away. A smaller life insurance policy specifically designed to provide a few years of income replacement or supplement Australian Super may be more appropriate than maintaining a large policy designed for mortgage and child-rearing years. |
Disclaimer: The considerations above are general in nature and based on publicly available information from Sorted, the Financial Markets Authority, and industry sources. Individual circumstances vary - consider seeking personalised guidance from a licensed financial adviser.
Australian life insurance providers offer a range of options for people over 50, from full life cover to funeral insurance. Compare your options below.
One of Australia's leading life insurers, Partners Life offers flexible policies that can be adjusted as your needs change through your 50s and beyond. Their advisers can help structure cover that balances protection with affordability as premiums rise with age.
AIA provides comprehensive life insurance with options well-suited to over 50s, including the ability to scale back cover as needs change. Their Vitality wellness programme can also help manage premiums through healthy lifestyle rewards.
Now operating under Resolution Life, Asteron Life has decades of experience serving older Australians. Their product range includes options that can be tailored for over 50s, including reduced cover levels with more manageable premiums.
Australia's largest locally-owned life insurer, Fidelity Life offers a range of products suitable for over 50s. Their funeral insurance product provides a simpler, lower-cost alternative to full life cover for those whose primary concern is end-of-life costs.
Pinnacle Life's direct-to-consumer model means no adviser fees are built into premiums, which can result in more competitive pricing for over 50s. Their online application process is straightforward and cover can be arranged without face-to-face meetings.
A digital-first insurance brand offering life insurance online with transparent pricing. Cove provides a simple, no-fuss option for over 50s who want straightforward cover without lengthy adviser meetings or complex product structures.
Disclaimer: Provider information, features, and pricing are based on publicly available data as of early 2026 and may change without notice. Coverage limits, exclusions, and terms vary between policy tiers - always read the Policy Document before purchasing. Compare.com.au may earn referral fees from some providers listed above.
Several factors determine how much you will pay for life insurance as an over 50 in Australia.
Age is the single biggest factor in life insurance pricing. Premiums at 55 are significantly higher than at 45, and by 65 they can be several times the cost. Each year you delay taking out or reviewing cover, the more expensive it becomes. If you already hold a policy, your existing rates - while rising - are typically better than starting fresh.
Conditions that commonly develop after 50 - high blood pressure, type 2 diabetes, elevated cholesterol, joint issues, and cancer history - all affect premiums. Insurers assess your current health, family history, and any ongoing treatments. Full disclosure is essential as non-disclosure can void your policy.
Reducing your sum insured is one of the most effective ways to lower premiums. If your mortgage has reduced from $500,000 to $150,000 and your children are independent, dropping your cover to $200,000-$300,000 could save hundreds of dollars per month while still providing meaningful protection.
Smokers pay substantially higher premiums at any age, and the gap widens after 50. If you have quit smoking for 12 months or more, most insurers will reclassify you as a non-smoker, which can reduce your premiums significantly. Contact your provider to request a rate review if your smoking status has changed.
Full life insurance provides a large lump sum and is the most expensive option. Funeral insurance provides a smaller payout ($10,000-$25,000) at much lower premiums. Guaranteed acceptance funeral policies - with no health questions - are available but typically have a stand-down period and higher premiums per dollar of cover.
A policy with 10 years remaining costs less than one with 25 years remaining, all else being equal. If you only need cover until retirement at 65, a shorter-term policy will be more affordable than cover to age 85. Aligning your policy term with your actual needs can deliver meaningful savings.
Different situations call for different approaches to life insurance after 50. Here are the main options to consider.
Keep your existing life insurance policy but reduce the sum insured to match your current obligations, lowering premiums while maintaining some protection.
Transition from full life cover to a funeral insurance policy that covers end-of-life costs without the high premiums of a large sum insured.
Continue with your existing level of life cover if your financial obligations, dependants, or estate planning needs still warrant it.
If your assets are sufficient to cover all obligations and your dependants are financially independent, cancelling life insurance and relying on savings may be an option.
Practical tips to help Australians over 50 make smart decisions about life insurance cover.
Many people set up life insurance in their 30s and never review it. By your 50s, your circumstances may be vastly different. Take time to assess your actual financial obligations, dependants, and assets. You may find you are paying for far more cover than you need. The Sorted life insurance calculator can help you estimate your current needs.
Your existing policy was underwritten based on your health at the time of application. If your health has changed since then - even minor conditions like high blood pressure or elevated cholesterol - a new application may result in higher premiums, exclusions, or decline. Reducing your existing cover is often better than cancelling and starting fresh.
If life insurance premiums have become unsustainable, funeral insurance offers a way to maintain some protection at a much lower cost. Products from providers like Fidelity Life and Pinnacle Life provide cover of $10,000 to $25,000 - enough to cover funeral costs and provide a small buffer for your family.
Stepped premiums increase each year with age and can become very expensive after 50. Level premiums are fixed (or increase only with inflation) and are higher initially but may be cheaper over the long term. If you are on stepped premiums and plan to keep your cover for another 10-15 years, ask your provider about switching to level premiums.
Consider your life insurance in the context of your overall financial position. If you have a healthy superannuation balance, investment properties, or other assets, you may need less life cover than someone with fewer resources. Work through your total financial picture before making changes to your insurance.
Some Australian life insurers offer benefits or considerations for long-standing customers. If you have held a policy for 15-20 years, contact your provider to ask about any available discounts, loyalty benefits, or alternative product options that may better suit your current stage of life.
Common questions Australians over 50 ask about life insurance.
Disclaimer: The information on this page is for informational purposes only and does not constitute financial, insurance, or legal advice. All pricing shown is indicative and based on publicly available data as of early 2026. Actual premiums will vary based on your age, health, smoking status, sum insured, and chosen cover level. These figures are not quotes - always obtain a personalised estimate from Compare.com.au or a quote directly from the provider. Compare.com.au may earn referral fees from some providers featured on this page. This does not affect the completeness or order of our comparisons. For personalised financial guidance, consider consulting a licensed financial adviser.
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