Costco life insurance is a Protective Life Insurance Company product offered to Costco members only.
Protective Life is a great company, we work with them all the time as well as many other life insurers.
The Pros and Cons of Costco Life Insurance
Before you buy any life insurance policy, think about the pros and cons of the product.
Should you buy life insurance from a big-box retail store like Costco?
It’s definitely worth considering, but read this first to become an informed consumer about this type of product.
- Cheap – The price is great if you qualify for the best rate class
- It’s easy – You can apply online quickly
- Fast – Some people may be approved through accelerated underwriting
- Executive membership gets you an additional 5% discount!
- Only 2 term lengths are available
- You may have to take a medical exam to qualify
- The conversion privilege is limited
- Discount ends after 5 years
- Gold membership costs 5% more
Something we haven’t been able to get an answer on is:
What happens to your discount if you are no longer a member of Costco or change your membership level???
If you’re new to life insurance, check out our Life Insurance 101 guide.
How to decide if Costco life insurance is right for you
Before you decide if Costco life insurance is right for you, consider these 4 important points.
First – Decide if a 10-year term life insurance policy or a 20-year term life insurance policy is right for you.
While Protective Life offers many term lengths for their most popular products, this policy is only available in 10 or 20-year durations.
Second – Your health – The better your health is, the more appealing the Costco life insurance cost is, here’s why.
Costco term life insurance offers 4 underwriting rate classes:
Select Preferred, Preferred, Non-Tobacco, and Tobacco rate classes.
Like most companies, Costco’s Protective life insurance policies have specific underwriting rules to qualify:
Select Preferred Underwriting Highlights:
- No nicotine use for past 5 years
- Up to 12 cigars per year is ok
- No DUI in 5 years
- No history of heart disease, cancer in parents or siblings before 60
- Blood pressure max 135/85
- Cholesterol max of 275, ratio 4.5
- Height/Weight Chart – BMI of 28+/-
Preferred Underwriting Highlights:
- No nicotine use in 24 months
- Up to 24 cigars per year
- No DUI in 5 years
- No death of heart disease, cancer in parents or siblings before 60
- Blood Pressure max 140/90
- Cholesterol max of 275, ratio 5.5
- Height/Weight Chart – BMI of 30+/-
If you qualify for the Select Preferred rate class, this Costco life insurance plan is a good deal and is hard to beat.
Third – Is Costco life insurance always the best deal?
Definitely not, especially if you do not qualify for Select Preferred rates.
For example, if a parent died from cancer before 60, the best Costco life insurance rate you will qualify for is the “Preferred” rate.
Compare that to Banner Life – the best rates are available if a parent died from cancer before 60.
If you have a pre-existing medical condition such as diabetes, heart disease, cancer history, you should definitely consider other life insurers.
Last but not least – Consider your membership level – the Executive level offers an additional 5% +/- discount over the Gold level.
It seems like a no-brainer that if you are buying life insurance from Costco, make sure your membership is at the Executive level.
Alternatives to Costco life insurance
As an independent life insurance agency, we have access to over 50 life insurance companies.
When you request a quote from us, two things happen.
One – You’ll receive instant term life insurance quotes ranked from cheapest term life to most expensive.
Two – We’ll contact you to make sure you qualify for the rates you see.
There is never any pressure or obligation with our service.
You’ll get the information you need to make an informed decision about your life insurance.
How to apply for Costco life insurance
If you decide to apply for the Member Advantage Life Term product, you have to take the following steps:
Step One – Get a free quote
There are 10 inputs required to get your quote – coverage amount, term length, state of residence, membership type, gender, date of birth, height, weight, tobacco status, and health.
Step Two – Fill out an application
You’ll enter your personal details such as contact information, beneficiary information, ownership information, employment, income information, etc.
Step 3 – Complete a phone interview
You’ll be contacted by a representative to review the information you provided and to discuss further details of the life insurance process
Step 4 – Get a free medical exam
During the phone interview, a paramedical exam will be scheduled for you. Some people may be able to skip this step – you’ll know during the phone interview.
Step 5 – Wait for underwriting approval
The waiting time for approval ranges from days to as many as 8 weeks. It will all depend on whether a medical exam and physician records are required. Once everything has been received and reviewed, you’ll receive an underwriting decision from the company.
Step 6 – Accept or reject your policy
Once approved, you may either accept or reject the life insurance policy offered to you. You are under no obligation to accept it, and there is no cost to you if you reject it.
FAQ about Costco life insurance
You may have some questions before you consider applying.
What are the minimum and maximum amounts of coverage?
The minimum is $100,000 and the maximum available is $5,000,000
Is the policy convertible to permanent life insurance?
Yes, conversion is available for a limited period of time. Up to 8 years for the 10-year product, and 18 years for the 20-year term product.
Is there a product guide available?
Yes, please see below for the consumer approved guide
Costco life insurance is a great option to consider if you are in excellent health.
If you don’t qualify for the very best rates, it makes sense to compare other options as another life insurer may be better, even with the member discount.
Get a free, no-pressure, no-obligation life insurance quote today.
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