Have you heard about Costco life insurance? Probably not — most people haven’t. But it’s a great way to safeguard your family’s future at affordable price levels. Read on to learn how it works and what it costs.
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So, Costco sells televisions, tires, bananas, and…life insurance? Well, not exactly. Costco partners with Protective Life insurance to offer Costco members exclusive offers.
On average, Costco Members save an average of 15% on life insurance with Protective Life. Sound too good to be true? Well, it’s not! Read on to learn all you need to know.
What Is Costco Life Insurance?
Protective Life Insurance Company is a stable insurer with more than 100 years of experience in the industry. The brand partners with Costco to offer reasonably priced coverage.
Members enjoy special entry-level rates for the first five years of their Advantage Life UL Policy. Founded in 1907, Protective Life offers products in all 50 states.
The company pays out more than $2 billion in claims each year. So, you can feel comfortable knowing they are a life insurance company that lives ups to its promises.
Products Offered

The coverage offered by Protective is called Member Advantage Life UL. This is a universal life insurance policy with term life insurance qualities. Here’s what Member Advantage Life UL offers, in a nutshell:
- Flexible life insurance protection for 10 to 20 years
- Option to extend your coverage for your lifetime if needs change
- There is an extended level payment period that matches the policy length you select
- Additional reduction in premium for the first five years of payments
- Premium payments and coverage amounts personalized to your needs
- Less expensive that term, universal or whole products
Costco Life Insurance Cost

Of course, life insurance varies by each individual’s circumstances, needs, and policy chosen. And Executive members can save even more.
Protective offers sample pricing for a 29-year-old male who has smoked 2-5 years ago with with $100,000 of coverage in a 20-year period:
Gold Star Member
- $8.97 per month for years 1-5
- $10.46 per month for years 6-20
Executive Member
- $8.54 per month for years 1-5
- $9.95 per month for years 6-20
While $100,000 is a good place to start, Protective offers policies for up to $5 million. There are several factors you should consider when determining how much life insurance coverage you’ll need:
- Replace income
- Children’s college tuition
- Home mortgage payment
- Care for elderly parents
- Debt payment
To calculate your personal life insurance needs, visit costco.com/life-insurance-services.html or call 844-737-5433.
The Fine Print
Life insurance is complicated, but thankfully Protective offers the flexibility to change your plan after the third policy year. Here is some of the fine print to keep in mind:
- The Costco entry-level pricing is for the first 5 years. Premiums will increase starting at year six.
- The level premium period beginning at year six can be extended beyond the level benefit period. However, the face amount will decrease at this point each year until it reaches $10,000. At that point, premiums will increase.
- Requests to increase coverage must have evidence of insurability to Protective Life. Decrease can occur after the third policy year but are subject to minimums.
- Full medical underwriting might be required if applicants don’t meet eligibility criteria.
- The death benefit amount for the life policy will decrease each year after the initial coverage period until it reaches 10,000. Premiums increase at that point.
How to Apply

The other benefit to Costco members is the easy, streamlined application process. Here’s how to apply for Protective Life insurance as a Costco member.
Get life insurance quotes online by visiting costco.com/life-insurance-services.html and clicking “Calculate Your Needs.”
- Enter your information along with your beneficiary’s names and percentage they are to receive.
- Wait for a call from Protective Life. An insurance agent will call at your convenience for a 20-minute phone call. They will conduct a short interview about your medical history.
- Then, you will schedule a medical exam. You don’t even need to go to the doctor. A representative will come to you for a routine life insurance physical examination.
Protective Life will then review the information on your application and the medical exam.
The insurance agency will contact you once your application and underwriting are complete. You will receive all information electronically so you can file it for your records.
Note: Depending on your exam results and medical history, the life insurance company may request additional medical records or underwriting process. This can take a few extra weeks.
Costco Life Insurance Pros and Cons

Buying Protective Life insurance through Costco has some big benefits. Namely, price. There are lots of added benefits to protect your loved ones in the event the worst case scenario should occur. Here are some pros and cons of Costco’s life insurance product.
Pros (what we like)
- Term life insurance through Costco is typically 10 to 20% cheaper than market rates.
- There is an option to convert term policies into whole life policies or renew it into another policy after the initial period.
- There is an additional accelerated death benefit that pays out a lump sum of up to 60% of your policy after a terminal illness diagnosis. It can cover immediate medical expenses along with your health insurance.
- A disability benefit allows you to maintain monthly premium payments so that your policy can stay active while you’re disabled.
- Trustworthy provider with more than 100 years in business.
- They offer great customer service.
- Many riders and policy add-ons.
Cons (what can be improved)
- Costco insurance only offers 10- and 20-year term policies.
- There is no 30-year term or whole life insurance.
- Life insurance for smokers can be 2 to 4 times higher than non-smokers.
- There are also other health issues considered like diabetes.
- Discount expires after 5 years.
- Costco only sells from one company.
While Costco’s discounts with Protective Life can be limited, it’s important to keep in mind that the company offers many additional policies if you need them in the future.
You can choose a whole or universal policy. These even offer a cash value. But, they are not offered through Costco so you can’t take advantage of the discounted life insurance rates through the wholesaler.
Costco Life Insurance Summary

Life insurance is complicated. To simplify, the type of insurance offered through Costco is term life insurance through Protective Life Insurance.
If you’re comparing options, the policies through Costco Wholesale typically cost 10 to as much as 20 percent below competitors.