The OP provided almost no detail when requesting help. Nor since. It wasn't even clear if this 500m distance was horizontal or vertical; I assumed the latter because it's the maximum permitted elevation. And I'm all for flying safely, thinking of others. But we have gone up to the maximum of 500m (over 1,500ft) on several occasions. We have had no VLOS, being above the clouds. However, we had clear sight ahead via the bright screen of the
P4P+ and excellent visibility both before and once through the low cloud - with two of us avidly focused on the screen, looking ahead.
Before anyone immediately also jumps down my throat, it was done above our own huge expanse of land in South Africa. We are in a very remote area. The chances of encountering a military helicopter are close to zero. There are no crop sprayers, small aircraft, or commercial helicopters (other than one occasionally hired by us for game capture). There are commercial aircraft very high above, at 35,000-40,000ft - which leaves a safety gap of approximately 28,000ft or more from the drone.
Like almost everyone else, I too make assumptions (which are mostly correct, but only a starting point that sometimes need correcting when wrong or inexact). But to repeat, none of us know the OP's particular circumstances. Dronesolace has only posted a few times - and I hope some of the responses above on this thread haven't put him/her off from continuing to post or visit this excellent forum.
Rules and regulations are sadly necessary. And they can't always provide a perfect match to each and every situation in life. But there's also common sense - even if it's far from being common. Exceptions do exist, especially when your standards are high. Safety isn't always dependent just on rigidly sticking to the rules and regulations. The dangers of flying a small drone thankfully are much less than flying a light manned aircraft, for example, when sticking rigidly to the aviation rules should be a given and those pilots bragging how they have ignored them whilst sitting/drinking in the club house afterwards are merely lucky to have got away with it.
I've flown with British RAF pilots many times during the Ethiopian famine of 1984/1985. They broke the rules many times, adjusting to circumstances, usually (but not always) with good reason. And C-130s are a bit bigger than our wee drones. They were brilliant and safe. These were calculated exceptions.
I've written the above, not to start further argument. Nor am I in any way suggesting there should be a cavalier attitude to flying our drones. If someone with such outstanding experience and thoughtfulness like BigAl07 was to reprimand my above-the-clouds actions, I'd listen/consider/learn. As of now, I'd do exactly the same again (if required) with a clean conscience.