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In this paper the accelerated aging experiments of oil-paper insulation are carried out to simulate the oil-paper aging process under normal thermal aging process. On the basis of the results of accelerated aging experiments, how the deviation degree of aging status change under the same aging factors is studied, and a method to calculate the failure probability due to the loss of mechanical strength of the insulation is put forward. This paper presents an approach for economic assessment on insulation diagnosis through accelerated aging experiments. The foundation of this approach for economic assessment on insulation diagnosis is to establish condition simulation method of triple relationships between condition status, aging time and failure probability according to data from accelerated aging experiments. The conclusions are made that the economic and technical factors can affect the optimum life cycle cost of each maintenance strategy, which consequently affects the economic feasibility of condition-based maintenance strategies. [ABSTRACT FROM AUTHOR]