Life Insurance for 54 Year Olds

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.

To prevent conflict, both financial and emotional, you can invest in a life insurance policy. It is never too late. Even in your 50’s a life insurance policy can afford your family the protection they need if you pass away.

Why You Need Life Insurance at 54

There are many more granular reasons why at 54 years old you would need a life insurance policy.

  • 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 gain 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 a state taxes and provide an inheritance.

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. For people who might have severe health concerns, those who do not need to provide a half the amount of coverage 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.

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.

Your income even if it isn’t the only income in the house, 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.

If you have a history of family illness which 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.

Life Insurance Rates for 54-Year-Olds

The costs 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 safe lifestyle, the non-smoker rates are as follows:

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

Life Insurance Rates for 54-Year-Old Smokers

That said, your health and lifestyle habits have a big impact on your costs. Consider this example of a smoker with the same health components as the applicant above other than smoking:

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

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 someone who has diabetes that is being moderately handled:

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

What Are the Best Life Insurance Companies for 54-Year-Olds? 

Best Life Insurance Companies for 54-Year-Old Diabetics

For a diabetic, these are the best rates you will receive for a $2,000,000 coverage policy for 20 years:

CompanyMonthly Rate
Prudential$663.69
Transamerica         $792.06
AIG$815.18
Protective$820.01
Lincoln Financial$822.15

Best Life Insurance Companies for 54-Year-Old Smokers

For a smoker, these are the best rates you will receive for a $500,000 coverage policy for 20 years:

CompanyMonthly Rate
Banner Life$435.50
Prudential               $441.00
AIG$438.04
Transamerica$445.91
Pacific Life$447.34

Best Life Insurance Companies for 54 Year Old Substandard Health

For someone without any health concerns, who is not a smoker, or a diabetic, these are the best rates you will receive for a $200,000 coverage policy for 20 years:

CompanyMonthly Rate
Prudential$663.69
Transamerica         $792.06
AIG$815.18
Protective$820.01
Lincoln Financial$822.15

7 Best Life Insurance Companies for 54-Year-Olds – Review

CompanyA.M. Best RatingLife Insurance Options
Lincoln Financial GroupA+
  • Term life
  • Universal life
  • Variable universal life
Prudential FinancialA+ Superior
  • Term life
  • Whole life
  • Survivorship life
  • Universal life
  • Indexed universal life
  • Variable universal life
Banner LifeA+ Superior
  • Term Life Insurance
  • Universal Life Insurance
TransamericaA+ Superior
  • Term life
  • Whole life
  • Universal life
  • Variable universal life
AIGA Excellent
  • Term life
  • Whole life
  • Universal life
  • Indexed universal life
  • Variable universal life
Protective LifeA+ Superior
  • Term life
  • Universal life
  • Variable universal life
  • Survivorship life
Pacific LifeA+ Superior
  • Term life
  • Universal life
  • Indexed universal life
  • Variable universal life

Out of these, each have their niche. For example: Protective is a wonderful option for smokers because they offer non-smoker rates to those who do not make a habit of smoking.

Even for their burial insurance, smokers can lock down non-smoker rates and then take the first three years of the policy to try and quit smoking. If they are successful, they can continue to pay the non-smoker premium for the duration of the policy.

Transamerica offers fast, automated underwriting so you can get a policy without having to wait for months.

How to Get the Best Life Insurance Rates as a 54 Year Old

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 have to offer.

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About Jeff Root

is the owner of rootfin.com. He's an independent life insurance agent who has helped 1,000's of consumers purchase life insurance online and over the phone.

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