The Best Life Insurance for 54-Year-Olds: Sample Rates, Top Companies, & Policy Options

Last Updated: November 2020

If you or a loved one is 54 years old and interested in life insurance, this guide is for you.

Purchasing a life insurance policy can support your family in the event of your passing. A life insurance policy in your 50’s can be affordable and a good investment in many situations.

In this article, we will cover sample rates for different policies, the 7 best life insurance companies, and the best policy types for age 54.

• Should I Get Life Insurance at Age 54?
• Sample Rates: The Cost of Life Insurance at Age 54
• The Best Life Insurance Companies for 54-Year-Olds
• The Best Types of Life Insurance Policies for 54-Year-Olds
• How to Save On Life Insurance at Age 54

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Should I Get Life Insurance at Age 54?

Life insurance is a financial tool you can use to prevent your loved ones from having to deal with financial strain, unexpected costs, and more during their time of grief.

When there is an unexpected death, it can be devastating, especially for a family who are not financially able to cover the expenses.

If your loved ones cannot afford to continue payments on a car without your income, they might lose the car. The same is true of a home in which your family has grown up.

In the worst of cases, the family cannot afford outstanding medical bills or the funeral service, let alone cremation or burial. The final expenses are put on credit cards and families are left with a significant debt thereafter.

There are many reasons a 54-year-old man or woman might need a life insurance policy. Here are several examples where it makes sense.

• You might need life insurance to provide for your spouse and your children in the event of your untimely death.
• You might have medical bills that you need to start paying for.
• You might have credit card debt or a mortgage or a car loan that your family would be unable to pay off if you were to pass away.
• You might have people who are dependent upon you, like a disabled child or older, retired parents.
• You might want to use your insurance policy as collateral for other financial gains in which case you need a policy that you can use immediately.
• You might simply choose to use your life insurance policy to generate extra cash or as an investment tool.
• You might want a policy to help you set up enough money to cover estate taxes and provide an inheritance.

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Sample Rates: The Cost of Life Insurance at Age 54

The costs of life insurance for someone who is 54 will vary based on things like health, smoking, and hobbies.

If you fall into the “preferred” category because of good health and a safe lifestyle, the non-smoker monthly rates are as follows.

Term	$100,000	$200,000	$500,000	$1,000,000	$2,000,000
10 years	$18	$31	$63	$116	$226
15 years	$24	$43	$81	$154	$304
20 years	$30	$56	$109	$208	$411
25 years	$48	$93	$171	$325	$646
30 years	$61	$117	$214	$420	$836
Whole	$264	$473	$891	$1,694	$3,344

Life Insurance Rates for 54-Year-Old Smokers

Your health and lifestyle habits will have a big impact on your costs. Consider these sample monthly rates for a smoker with the same health components as the applicant above other than smoking.

Term	$100,000	$200,000	$500,000	$1,000,000	$2,000,000
10 years	$64	$123	$260	$469	$933
15 years	$78	$152	$323	$632	$1,260
20 years	$104	$204	$435	$849	$1,691
25 years	$134	$266	$612	$1,206	$2,408
30 years	$141	$281	$649	$1,291	$2,580
Whole	$858	$1,672	$3,553	$6,952	$13,860

As you can see, the costs are significantly higher for someone who is currently a habitual smoker of cigarettes and cigars.

Working a year or two to reduce smoking habits, if you choose to change them, can help move you back into the less expensive price category.

Life Insurance Rates for 54-Year-Olds with Diabetes

Smoking is not the only thing that impacts costs. This is an example of monthly rates for someone who has diabetes that is being moderately handled.

Term	$100,000	$200,000	$500,000	$1,000,000	$2,000,000
10 years	$31	$57	$111	$190	$373
15 years	$40	$73	$135	$258	$509
20 years	$49	$90	$176	$335	$663
25 years	$77	$151	$297	$578	$1,150
30 years	$71	$135	$313	$619	$1,230
Whole	$440	$803	$1,485	$2,838	$5,599

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The Best Life Insurance Companies for 54-Year-Olds

The best life insurance carrier for you depends on the type of policy you need, your health, and other factors. These three companies often have great policies for people at age 54.

• Best for Term life insurance: Lincoln Financial Life Insurance company has great rates for higher coverage amounts during your highest income-earning years.
• Best for Whole life insurance: Northwestern Mutual Life Insurance company has strong dividend performance for this age.
• Best for High-Risk life insurance: Prudential Life Insurance company has a lot of underwriting advantages for those with Prostate Cancer, Diabetes, etc.

These three companies have great policies, but it’s always best to compare as many top-rated companies as possible before purchasing a policy.

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The Best Types of Life Insurance Policies for 54-Year-Olds

At this age, you can choose from three separate policy types.

Burial Life Insurance

Burial life insurance is the bare minimum option you have at your disposal.

• It is the most affordable type of life insurance.
• It has the lowest coverage amounts, usually $5,000 to $50,000.
• It is designed primarily to cover final expenses and burial costs.

For people who might have severe health concerns, those who do not need to provide large sums of money to their families, or those who might not be able to afford anything else, burial life insurance gives you just enough money to cover your final expenses.

Term Life Insurance

Term life insurance is set up for a specific period. These policies are meant for people who need to replace income, pay off debt, or otherwise provide money for a specific length of time.

• It is cheaper than permanent life insurance.
• It usually comes in 10, 20, or 30-year terms.
• After the term is up, you lose the policy.
• You can sometimes convert the policy to a whole life policy.
• There are more flexible options like policy riders.
• It is designed to pay off large debts in the event of your death.

At this age, you might need to invest in a term policy because you have a mortgage that still isn’t paid off. You might need to invest in a term policy because you have children who are still living at home for whom you must provide.

Even if your income isn’t the only income in the house, it probably pays for services specific to your children such as education, babysitting, health care, and other things.

Ideally, the amount of coverage you set up and the length of your term should cover your family until they all become of age and move out on their own, usually once they have finished college.

Permanent Life Insurance

At this age, a permanent life insurance plan is something you should consider if you have people who are permanently dependent upon you.

• This is the most expensive type of policy.
• It comes in small and large coverage amounts.
• The policy does not expire, so your family is essentially guaranteed to get the death benefit.
• Acquires cash value through the monthly premiums.

If you have a history of family illness that might render you incapacitated in the future or might require a great deal of permanent home care, you might want to consider setting up a permanent life insurance plan so that you can borrow against it.

Permanent plans are also good for people who have received a diagnosis of a terminal illness and want a policy where they can take out cash and still maintain a death benefit.

People who have parents or disabled children who are dependent upon their income might buy permanent life insurance.

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How to Save On Life Insurance at Age 54

All life insurance companies provide the same function, but they do have different qualifying criteria. This means that every company will look at you slightly differently when they go to determine your risk.

Some companies might disqualify you entirely from coverage because of an existing medical condition where others might just charge you a higher premium.

Do your homework and find out which companies are friendliest to your situation and focus on the policies they have to offer.

It is in your best interest to work with an independent agent or broker and not directly with the insurance company until you are ready to buy.

Independent agents know which lifestyle questions and health questions are most important and they can help you find out whether your health history or lifestyle are going to be problematic for different companies.

If you reach out to the insurance company alone, you might not get unbiased information and you certainly won’t get a clear idea of who all the players are and what each of them has to offer.

We’ve helped 1000’s of people in their 50’s purchase affordable life insurance. Fill out the quote form on this page, and give us a call so we can help you compare rates from all the top carriers, all free to you.