Here's What Happens if You Don't Buy Life Insurance Until Your 50s

Putting a life insurance policy in place could protect your loved ones financially in the event of your passing. Now, by the time you reach your 50s, it may be that your kids are grown and are holding down jobs of their own, so it's only a spouse you need to worry about. But every situation is different.

It may be that you don't have a spouse or kids, but rather, you've become a caregiver for your aging parents. And in that case, if you were to pass away, your parents might be forced to take up residence at an assisted living facility at an astronomical price they can't afford.

Either way, there are different situations that might explain why you're first applying for life insurance in your 50s. And one thing you should know is that you can, in fact, get approved for coverage despite being older. But don't be surprised if that coverage ends up costing you more.

Your age might drive your premium costs up

Life insurance companies don't just set premium rates at random. Rather, they set those rates based on risk -- specifically, the risk of them having to pay out on a policy while it's in effect.

If you have a heart condition, for example, that might drive the cost of your premiums upward, since it might make you more likely to pass away at a younger age. Similarly, life insurance companies will generally ask about your hobbies and habits when you apply. If your favorite weekend activity is skydiving, that, too, could result in higher premiums.

Similarly, life insurers take the age of an applicant into consideration when determining premium rates. So if you're on the older side, you should expect to pay more for life insurance than someone who's younger.

Term life insurance may be your most affordable option

When it comes to buying life insurance, you have choices. You could get a whole life policy that accumulates a cash value and provides coverage on a permanent basis, or you could get a term life policy with no cash value that runs out after a period of time.

Term life insurance can be far more affordable than whole life insurance. So if you're applying on the later side, then you may want to stick to a term life policy. Of course, in that case, you'll need to decide how many years of coverage you want.

If you're buying that insurance to protect a spouse financially, you may decide that a 10-year term is adequate, since your spouse might be able to get on Social Security once they reach their 60s (this assumes your spouse is roughly the same age as you). Or in the case of putting a policy in place to protect your elderly parents, a 10-year policy might also suffice if you don't think they'll live beyond that point.

And to give you an idea of the costs you might face, if you're looking for a $1 million policy and you're a non-smoker, a 10-year term life insurance policy might cost you $126.50 a month at age 50, says Dave Ramsey, while a 20-year term life policy might cost you $195.50 a month. But that's also based on $1 million in coverage, which may be more than you need.

All told, buying life insurance in your 50s will generally mean paying more than you would have for coverage had you applied earlier. But if you shop around for rates, you might manage to secure coverage that's affordable for you.