If you or a loved one is 54 years old, and interested in life insurance, this guide is for you.
Below you’re going to find out if you should buy life insurance at age 54, which types of policies are best for you, the rates you can get, and the best life insurance companies for 54-year-olds.
Purchasing a life insurance policy can support your family in the event of your passing. Even in your 50’s, a life insurance policy can be affordable and a good investment in many situations.
- Should I Get Life Insurance at Age 54?
- Types of Life Insurance Policies for 54-Year-Olds
- Life Insurance Rates for 54-Year-Olds | For Smokers | For Diabetics
- 7 Best Life Insurance Companies for 54-Year-Olds
- How to Save On Life Insurance at Age 54
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.
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 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 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 safe lifestyle, the non-smoker rates are as follows.
|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
Your health and lifestyle habits will have a big impact on your costs. Consider these sample rates for a smoker with the same health components as the applicant above other than smoking.
|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.
|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|
The 7 Best Life Insurance Companies for 54-Year-Olds
Again, the best company for life insurance depends on your health, medical history, and hobbies. Some companies have better policies for healthy people, while other carriers cater to smokers or diabetics.
In general, these are the best companies for a 54-year-old man or woman, based on financial rating, policy options, customer service, and our industry experience.
|Company||A.M. Best Rating||Life Insurance Options|
|Lincoln Financial Group||A+||
|Prudential Financial||A+ Superior||
|Banner Life||A+ Superior||
|Protective Life||A+ Superior||
|Pacific Life||A+ Superior||
Out of these, each has its 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 fast without having to wait for months.
Call us to find out which of these companies is best for your situation!
Best Companies for a Diabetic at Age 54
For a diabetic, these are the best rates you will receive for a $2,000,000 coverage policy for 20 years:
Best Companies for a Smoker at Age 54
For a smoker, these are the best rates you will receive for a $500,000 coverage policy for 20 years:
Best Companies for a 54-Year-Old with 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:
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.
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