Costco Life Insurance Review

Considering buying life insurance from Costco?  We strongly suggest exploring your other options before you do. 


While Costco offers great deals and service on thousands of items, their life insurance offering is less than ideal. Costco sells a single Universal life insurance policy to all its members. However, in the world of insurance, the one size fits all approach is never a good idea.

Our independent agency helps you shop and compare Costco’s life insurance policies with top competitors. We frequently find our clients with better coverage and lower premium rates with other providers. Fill out the form on your screen to see what we can do for you.

Costco Life Insurance Overview

  • Protective Life Insurance Company underwrites and issues all Costco policies
  • Only one plan available which is a Universal life policy
  • An extensive medical exam required
  • Not everyone will qualify
  • Rates that increase when the policy is renewed
  • Not an ideal option for people over age 50

Costco Is Not An Insurance Company

Costco is a bulk supply store. Not an insurance company. Therefore, the life insurance options they offer are through an exclusive partnership with Protective Life.

About Protective Life Insurance Company

Operating since 1907, Protective Life is one of the nation’s oldest insurance providers. They have roughly 8.6 million customers. And a long history of innovative products and competitive rates. Protective offers many different insurance policies to fit their client’s needs; however, through Costco, they only have access to one.


Costco’s Member Advantage Universal Life Insurance Policy

The Member Advantage Universal Life is Costco’s only life insurance option.  They do not offer whole life, final expense, or guaranteed acceptance life insurance options.

Quick Glance 

  • Coverage up to 20 years
  • Renewable options that can last as long as you live.
  • Rates increase over time
  • Full medical exam required
  • Protective Life does not have lenient underwriting. Many people with pre-existing medical conditions will fail to qualify 

Understanding Universal Life Policies

Term insurance = temporary coverage 

Whole life insurance = permanent coverage 

Universal Life = option for either or

A Universal Life (UL) policy is a term insurance policy that provides a renewable option that can last a lifetime.  For those who qualify, these policies have flexible options to adjust for your life insurance needs along the way.

UL policies are a great choice for work aged individuals with changing life circumstances such as growing a family. 

Benefits of Costco’s Universal Life Policy

  • Flexible options
  • Builds cash value
  • Low rates (for those who qualify) 

Why Universal Life Insurance Policy From Costco Is Not Good For People Over 50

Increasing Rates:  Universal Life coverage provides temporary coverage for a defined period of time. During this time, your rates remain fixed. However, if you choose to renew your policy, your rates dramatically increase each time you do. Many senior’s end up dropping UL policies due to rising rates.

Difficult To Qualify For:  Most people with pre-existing medical conditions won’t pass the extensive medical exam required for enrollment.  

Roughly 85% of people over age 60 suffer from at least one chronic condition. If this is you, you’ll likely need to explore final expense and guaranteed acceptance life insurance policies. Neither of which require medical exams.

High Policy Amounts:  Costco’s life insurance policy requires a minimum of $100,000 in coverage. Far more than what the average American needs to pay for end-of-life costs. High policy minimums result in higher premium rates. If you’re looking to cover your final expenses, we strongly suggest not purchasing Costco’s life insurance.

Do Costco Member Get a Discount On Life Insurance?

Costco claims that members can save up to 20% on their life insurance. However, this claim is merely clever marketing and wordplay.

It doesn’t matter how big of a discount a company says they are offering, what matters the final cost. We frequently find out clients better rates with other providers that don’t offer any ‘discount.’

Financail Ratings & Reviews

Financial ratings reflect the strength and stability of financial institutions.  In other words, investing with a highly rated carrier can bring added peace of mind about your investment.

Protective Life has earned high ratings across the board.


Moody’s A1
A.M. Best A+
Standard & Poor’s





Customer Reviews

Everyone loves Costco.  So much so that it’s rather challenging to find negative reviews about them.  As a company, they treat their customers far better than most companies, which is why the company continues to flourish.  However, keep in mind that it’s not Costco who’s issuing the insurance policy.

All customer service interactions are through Protective Life.  Protective certainly treat their customers well also. The BBB gives Protective an A+ rating; however, their customer reviews are 1 1/2 out of 5 stars. 

Should You Buy Life Insurance From Costco?

In our opinion, probably not. As much as we love Costco for bulk food items, their one size fits all life insurance approach is not ideal.

Individuals age 50 – 85 can find better policies and lower rates from other competitors. And out independent agency is here to help you do just that.
We’ve helped thousands of individuals save both time and money on their coverage, and we’d love to help you too!

Explore your options today by filling out the form on your screen. See how Costco’s life insurance policies compare to your other market offers.

Our services are free. And there’s never any obligation when speaking with an agent. Fill out the form to get started today.

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