Costco Life Insurance Review – medical exam Quote

Costco Life Insurance Review

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  1. Costco Term Life Insurance

  2. Member Advantage Life Term by Protective Life

  3. Costco Life Insurance Rates

  4. Buying A Life Insurance Policy With Costco

  5. Pros & Cons of Costco Life Insurance

  6. Benefits of a Costco Insurance Policy

  7. Drawbacks to a Costco Life Insurance Policy

  8. Frequently Asked Questions About Costco Life Insurance

  9. Final Word

Suppose you’re one of the over 98 million people with a Costco membership. In that case, you’re probably used to stopping in for wholesale prices on frozen food, bottled beverages, books, electronics, and even an eye exam.

Other than the cost of your membership and the deal you got on a 48 pack of water, you’ve probably never thought about Costco for your financial needs. So you might be surprised to know that Costco offers life insurance.

Yes, life insurance. Costco, the second-largest retailer globally, has offered life insurance to its members since 2014 under Costco Insurance Agency Inc. In fact, life insurance is just one of many insurance options available to you as a Costco member.

Insurance options available from Costco includes: 

  • Life
  • Health
  • Dental
  • Vision
  • Home 
  • Auto

We’ll be focusing on life insurance in this article, but it’s good to know that other insurance types are available, especially if you already have a Costco membership.

The idea behind Costco is that your membership allows you to get discounts on the everyday items you’d need anyway. The discounts should add up to more than your membership cost saving you money in the long run. 

The same principle applies to Costco’s insurance offerings. Costco claims that members can save an average of 15 percent on their premiums for the first five years of the policy.

Plus, Costco’s life insurance policies are backed by Protective Life, a trusted name in the life insurance industry.

So, if you’re a Costco member, should you look into Costo life insurance? Is it really a good deal? As is the case with many things in financial planning, there’s no one size fits all answer. It comes down to your needs and personal circumstances.

Read on to see if Costco insurance makes sense for your situation.

Costco Term Life Insurance

The first thing you need to know is that currently, Costco only offers term life insurance. So if you’re looking for permanent life insurance plans such as universal life or whole life insurance, Costco will not be an option for your life insurance needs.

Term insurance is a temporary life insurance policy covering you for a set period of time, also referred to as contract length. At the end of your term contract, your policy will expire. Term life policies have no cash value. You won’t get any money back from a standard term life policy if you outlive the coverage.

However, term life policies are the most affordable type of life insurance, making it a popular choice for most people, including young families.

You can often get a large death benefit amount that will be paid to your beneficiary if you die during the contract length. Term policies are generally much cheaper than universal or whole life policies because they have an end date and don’t require a higher premium that is typically needed to help grow cash value.

Costco’s term policy is called Member Advantage Life Term, and it is exclusive to Costco members only.

You can choose between either a 10 or 20-year term duration. Death benefits between $100,000 and $5 million are available. According to Costco, you can make changes to your policy over the years, including your death benefit amount, by reaching out to Protective.

$500,000 Costco Term Life Insurance Sample Rates

Male 10-Year (Years 1-5) 10-Year (Years 6-10)
Age 30 $12.09 $13.60
Age 35 $12.36 $14.03
Age 40 $15.97 $18.28
Age 45 $24.45 $27.63
Age 50 $36.21 $41.23
Age 55 $59.86 $68.43
Age 60 $95.92 $109.65
Age 65 $169.46 $193.80
Age 70 $285.20 $325.98
Age 75 $555.32 $634.95
Female 10-Year (Years 1-5) 10-Year (Years 6-10)
Age 30 $10.39 $11.90
Age 35 $11.28 $12.75
Age 40 $14.48 $16.58
Age 45 $21.33 $24.23
Age 50 $30.07 $34.00
Age 55 $44.71 $51.00
Age 60 $65.19 $74.38
Age 65 $105.80 $120.70
Age 70 $172.95 $197.63
Age 75 $432.25 $494.28

*Rates shown in the above table are based on a male/female considered excellent health and do not use tobacco. Rates are current as of 02/10/2021, representing the cost of a $500,000 Costco Members Advantage Life 10-Year plan with an Executive membership.

View Rates

Buying A Life Insurance Policy With Costco

When you buy a policy through Costco, you’re really purchasing it through Protective Life. Although the Member Advantage Life Term policy is only available exclusively to Costco members, it is a Protective Life policy.

That means Costco doesn’t decide whether your application is approved and does not assign your premiums. Their job is to provide you access to getting coverage, almost like an insurance broker. The actual underwriting and issuing of your policy are done entirely by Protective Life.

How does applying for a policy work?

Costco insurance options can be found on the Costco website under the “services” tab located on the homepage. From there, you will want to navigate to the life insurance tab, where you will be taken to a dedicated Members Advantage Life Term page that has all the details about the term life insurance coverage.

If you’re interested in viewing rates and applying for coverage, you can do all of it online by completing a short application. There is no paperwork required at all.

To begin the online application, you will need to have either your Costco Gold Star or Executive membership number before you can proceed with the application.

After you complete the online portion of the application, a few things will happen:

Telephone call – Followed by the online application, you will need to complete a telephone interview with a Protective Life representative. The interview takes about 20 minutes, and the questions will be based on your medical history.

You’ll undergo a medical exam – You will need to take a medical exam to get covered. Protective will arrange for a medical professional to your home or office to complete the exam at a time that’s convenient for you. There is no added cost for the medical exam, and you will have access to the results.

Protective will make a decision – Protective will look over your application, exam results, and other details to decide if they’re able to approve you for a policy and what premium rate you qualify for.

Protective will notify you of their decision – Once you have completed the online application, telephone interview, and medical exam, your application will be underwritten. You’ll be notified of Protective’s decision as soon as they’re ready. If you’ve been approved, you can choose to accept your policy and rate or decline coverage.

Your Costco discount will apply to your policy – Your Costco discount will be applied to your policy once you accept it. The discount will continue for the first five years of your policy. After the fifth policy year premium will automatically change to the regular cost of the life insurance coverage and remain that price through the remainder of the term duration.

Pros & Cons of Costco Life Insurance

With Protective Life’s help, Costco can offer its members an excellent term life insurance plan with many pros. However, with all good things, there can often be negatives to be aware of. 

To provide you with an honest review, the next section will lay out all the pros and cons of Costco Life Insurance.

Pros of a Costco Life Insurance Policy: Cons of a Costco Life Insurance Policy:
A premium discount of 15 percent on average Approval is not guaranteed for all Costco members
Policies are offered by trusted insurance company Protective Your 15 percent discount only lasts five year
You can change your death benefit amount as needed The cost of a Costco membership might be more
than the discount you receive on life insurance
You can purchase up to 5 million dollars in coverage You could find cheaper life insurance options from other companies
The ability for your premiums to be reconsidered if your health improves Only term policies are offered
Multiple riders are available Only 10 or 20-year term lengths are available
Convertible to permanent life insurance Polices aren’t offered in New York State
An insurance broker might be able to offer a better Protective Life policy

Benefits of a Costco Insurance Policy

There are more than a few reasons to consider getting a life insurance policy from Costco. Some top benefits are discussed below.

An Average Discount of 15 Percent

Life insurance premiums are rarely ever discounted. It’s almost unheard of. However, because Protective has designed an exclusive life insurance plan that is only available to Costco members, they are actually able to offer a 5-year discount of up to 15% on their term life insurance premiums.

It requires a Costco membership of either Executive or Gold Star, and the discount will be applied to the life insurance premiums upon approval for coverage. 

According to Costco, the average member saves 15 percent. So, let’s say you were quoted a monthly premium of $35.00. If you got the 15 percent discount with Costco, you’d only be paying $29.75 a month. That means you’d save $63 in the first year of your policy and $315 over the first five years.

After the fifth policy year, your premium would automatically change back to the pre-discounted rate and will remain that price until the end of the level premium term length.

Policies from Protective Life Insurance

Life insurance is an important purchase and choosing a strong company is just as important as the actual insurance policy itself.

Protective Life is a trusted life insurance company that has been in business since 1907. The insurance company is well-rated, reviewed, and has a strong reputation for having good customer service.

One way of the best ways to verify the financial strength of an insurance company is to look at their look at professional ratings. Specifically when dealing with life insurance look for the company’s AM Best Rating. 

Protective Life has an A+ rating from AM Best making it the 2nd highest rating out of 15 possible ratings. What does this mean to you?

A company with a strong rating should provide peace of mind knowing that the insurance company has a strong financial outlook in being able to meet their obligations to their customers.

The Cost Of A Costco Membership

This one might sound obvious, but it’s worth mentioning that Costco memberships aren’t free. Currently, a Costco membership costs between $60 and $120 depending on your membership level.

Of course, if you’re using your Costco membership to buy groceries and household goods, this probably doesn’t matter. If your Costco insurance discount is one of many discounts, you’re getting through Costco, that $60 probably works out to a terrific deal.

On the other hand, you wouldn’t want to spend $60 just to get a 15 percent discount. So, if you’re already getting use out of your Costco membership, it might be a good idea to look into insurance, but it’s definitely not worth it to join Costco just for the insurance plan.

Only One Life Insurance Product Is Offered

Costco only offers term life insurance. While term policies are the most popular type of life insurance and a great fit for most families, they’re not right for everyone. In some cases, a permanent policy, like a whole life insurance or universal life policy, might fit your needs a lot better.

It’s always a good idea to look at all your options, and unfortunately, with Costco, your options are limited.

Limited to One Company’s Rates & Policy Features

One of the best ways to get a good deal on life insurance is to shop around and get quotes from multiple companies. When you buy a life insurance policy with Costco, you’re only seeing rates from Protective.

While Protective is known for having very competitive rates, that doesn’t’ always mean they’ll be the lowest. By not shopping around, you could be losing on getting a much better rate with another company.

Rates are not the only thing you could be missing out on.

Insurance companies are always looking for ways to offer competitive products. In doing so, you can find many life insurance products that offer unique features such as living benefit riders that can pay a steady stream of income if you become ill with a critical or chronic illness.

Limited-Term Options

Costco only offers 10 and 20 term options. These are very common term options, but they’re not ideal for every family. Sometimes a 15-year policy might be your best bet. In other situations, you might need a 30-year-policy to completely cover your mortgage or other financial obligations.

Coverage Isn’t offered In New York State

There are no Protective policies offered in New York State, including the Costco Member Advantage Life Term policy. So, if you live in New York, you’ll need to find other term life insurance options.

Compare life insurance rates from the top AM Best rated life insurance companies.

Compare Rates

Frequently Asked Questions About Costco Life Insurance

It’s understandable if you still have questions about life insurance from Costco. Check out answers to some common ones below.

Is the Costco Member Advantage Life Term policy a good deal?

For many people, it definitely can be a great option. The Costco Member Advantage Life Term policy is a term policy. That means it will be more affordable for most people than a whole or universal life policy.

Add in the 15 percent discount, and you could get a large death benefit amount for a very small premium. If you’re young, healthy, and already a Costco member, the policy might be a great deal.

That said, you should shop around first. You don’t want to miss out on an amazing rate from another company. It’s a smart idea to get quotes from other term life insurance companies and a quote from Costco before you apply anywhere.

Do I need to take a medical exam to get a Costco policy?

A medical exam will be required if you choose to apply for Costco life insurance. If you’re looking for a no medical exam alternative, there are plenty of excellent options to choose from, and we can help.

Use the quick quote form here at No Medical Exam Quotes to get quotes from top no exam term insurance companies today.

Is there an age limit on Costco Life Insurance Policies?

Yes. You’ll need to be 65 or younger for a 20-year policy. You’ll need to be 75 or younger if you’re interested in a 10-year policy.

What type of questions are asked during the telephone interview?

The questions on the telephone interview will be similar to completing an actual paper life insurance application. The interviewer will ask a few routine questions such as name, address, employer, income, etc.

Once the basic information has been complete, you will need to answer questions about your medical history. You will need to provide contact information to any doctors treating you for any medical issues. 

After completing the telephone application, you will have the opportunity to schedule your medical exam. The medical exam will consist of a blood and urine collection, height and weight measurement, and blood pressure readings.

At the end of your exam, you will sign your telephone application, and the examiner will submit the entire packer to Protective to be underwritten for possible approval of coverage.

If you have been approved for the coverage, you will be notified, and your policy will electronically be sent to you via email.

How long will it take to get a Life Insurance Policy from Costco?

It depends on your application, medical history, and other factors. Most applicants can expect to see results in a few weeks.

Final Word

Costco’s life insurance might work for you if you’re already a Costco member. The 15 percent discount and large coverage amounts make it a great fit for some people.

However, even if the coverage is exactly what you’re looking for, we’d still advise that you shop around a little before committing. Get quotes from other term policies or work with an agent to see what’s available.

It’s rarely a good idea to only look at one company when you’re shopping for life insurance. After you’re done comparison shopping, a Costco policy might end up being the best option for you, but since you’ll have seen other options, you can buy your plan with a lot more confidence.

If you’re considering the convenience of a no exam policy, you’re already in the right place. At No Medical Exam Quotes, we can show you quotes from the very best no exam companies. Use our easy form to get quotes and get started on your life insurance shopping today.

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