Cross-linked polyethylene (XLPE) has been widely used as insulation material for cables. In 2019, the highest voltage level AC 500 kV XLPE submarine cable has been operated in Zhoushan, China. The irreversible degradation poses a safety hazard to the operation of submarine cable. Therefore, it is necessary to investigate the physical, chemical and electrical properties of XLPE submarine cable insulation under aging condition and explore the method for its deterioration degree assessment. In this paper, the AC 500 kV XLPE submarine cable insulation material was thermally aged at 130 °C. The deterioration characteristics of materials were analyzed based on morphology, chemical structure, mechanical property, thermal property and dielectric properties. Multiple characteristic parameters were extracted and new deterioration condition assessment model was established. Results show that the physicochemical characteristic parameters including retention rate of elongation at break, carbonyl index ( CI ) based on FTIR, full-width at half-maximum (FWHM) of the diffraction peak based on XRD, melting enthalpy based on DSC analysis, and the dielectric characteristic parameters including modified Cole-Cole model parameter $\chi _{\mathrm {s\alpha }}$ and AC breakdown strength are sensitive to deterioration condition of XLPE material. According to the change of elongation retention at break, the deterioration condition of XLPE sample was divided into enhanced stage, wear-out stage and disposal stage. The new multi-factor deterioration condition assessment model including six characteristic parameters (retention rate of elongation at break, CI , FWHM, melting enthalpy, modified Cole-Cole model parameter $\chi _{\mathrm {s\alpha }}$ , AC breakdown strength) was successfully established by grey correlation analysis. The new model can reflect the property of mechanical, chemical, thermal and dielectric property and has prominent effect in differentiating deterioration degree of the AC 500 kV XLPE submarine cable insulation material.