Costco Life Insurance Review

Considering buying life insurance from Costco? We highly recommend 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 offers a single, Universal life insurance policy to all its members. In the world of insurance, the one size fits all approach is not a good idea.

Most of the people who buy Costco life insurance could find better coverage and lower rates with other insurance providers. Our agency is here to help you do just that.

We help you shop and compare life insurance companies nationwide to find your best policy and lowest premium rate.

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Costco Life Insurance Overview

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

About Costco’s Life Insurance Offering

Costco is a bulk supply store. Not an insurance company. Therefore they sell life insurance through an exclusive partnership with Protective Life.  Protective life insurance company underwrites and issues all Costco life insurance policies.    

About Protective Life Insurance Company

As one of the nation’s oldest insurance providers, Protective Life is a fantastic insurance carrier. They have a long history of innovative products and competitive rates.   

Protective Life offers several insurance policies; however, through Costco, they only offer one.


Costco’s Member Advantage Universal Life Insurance Policy

The single insurance policy Costco offers is a universal life policy called Member Advantage. Costco does not offer Final expense life insurance or guaranteed acceptance life insurance.   

Quick Glance 

  • Coverage up to 20 years. 
  • Renewable options that can last for as long as you live. 
  • Rates increase over time. 
  • An extensive medical exam is required.
  • Protective is not very lenient with their health underwriting. Many applicants will fail to qualify due to poor health.

What is Universal Life?

A Universal life insurance policy is a term life insurance policy that has a renewable option that can extend for a lifetime.   

A UL policy provides temporary coverage for a defined period or until you reach a certain age. After the initial coverage period, your policy will expire. However, you have the option to renew your coverage on a year to year basis. Rates for Universal Life policies increase each time you renew your coverage. 

Universal life insurance requires undergoing a medical exam and a health questionnaire. Individuals seeking life insurance with pre-existing medical conditions will likely not qualify.

Benefits of Universal Life Policies

  • Low rates for individuals who qualify – (rate increase the longer you own the policy)
  • Flexible policy design and payment options.
  • Possible cash value.

Cons of Universal Life Policies

  • A medical exam is required.
  • Individuals with pre-existing medical conditions will pay more or will not qualify. 
  • Rates increase over time. 

Do Costco Members Get a Discount on Life Insurance?

Costco claims that members can save up to 20% of their life insurance. That’s a big claim. While their claim may be true, it is merely clever marketing and wordplay. 

It doesn’t matter how big of a discount they say they are offering. What matters is the final cost. 

If another insurance company offers lower rates than Costco, well, their ‘discount’ is now shown as just another marketing tactic.

Our independent agency frequently finds our clients more coverage and lower premium rates with other insurance providers.

Financial Ratings & Reviews

Financial ratings reflect the strength and stability of financial institutions. High ratings show that the carrier has the financial means to pay out on policy claims. Investing with a highly-rated carrier will bring added peace of mind about your purchase. 

Protective has earned high ratings across the board. 

          Rating Institutions
A.M. Best
Standard & Poor’s
Protective Life Insurance Company

Customer Reviews

Everybody loves Costco. And it’s rather challenging to find a negative review about Costco. They are a fantastic company and have remarkable customer service. However, if you purchase a life insurance policy from Costco, all your customer service will come from Protective Life.
The BBB gives Protective an A+ rating. However, their customer reviews reflect only 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 supply peanut butter, their one size fits all approach to life insurance is not ideal coverage.

Individuals age 50 to 85 can find better coverage and lower rates with other types of senior life insurance policies.

Working with Our Independent Agency

Finding your perfect policy is easier than you might think.

Quote Instantly receive personalized quotes from all the top-rated providers when you fill out the quote form on your screen.

Compare One of our friendly agents will reach out to help you compare policy details and answer any questions.

Enroll Complete enrollment in about 15 minutes. No medical exams. And guaranteed acceptance options for those in poor health. 

We’ve helped thousands of individuals save time and money on their life insurance.

We’d love to help you too. 

Explore your options today and see how Costco’s life insurance compares to your other market options.  


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