Costco Life Insurance is a treat for its members who want 10- or 20-year term life insurance. The company offers a 15% discount for members and gives coverage of up to $5 million. However, other insurers are more flexible with their approaches and don’t require memberships to get insurance policies. Costco Insurance can be a good option for people who are already Costco members, but other insurance providers give more choices and flexibility.
- Coverage of up to $5 million, which is more than many term life insurers
- Discount for Costco members
- Get an online quote quickly and easily
- Only choose a term life insurance policy that is 10 or 20 years
- Must be a Costco member to get Costco insurance
- Medical exam for most applicants
Costco Life Insurance Ratings at a Glance
A life insurance policy is like a safety net. You don’t plan on using it, but it gives your loved ones extra protection. While a life insurance policy can help, it takes time to find the right policy for your financial needs. Costco Life Insurance is one policy to consider. The multi-billion dollar retailer has insurance policies available and offers discounts for its members. Is Costco legit? This Costco Life Insurance review will cover what Costco offers and if its insurance is worth it.
Costco Life Insurance Review
Costco offers life insurance policies through its partnership with Protective Life. The insurer has reliable finances to cover the policies and offers a 15% discount for Costco members. You can get a quick, personalized quote by filling out a short online form. Protective Life has competitive premiums and term life insurance policies of up to 20 years.
While Protective Life offers additional insurance policies, you can only get a term life insurance policy if you get insurance with Costco. A nice feature of Costco life insurance is that you can adjust the death benefit as your goals change. You can lower the death benefit to reduce your premiums or increase your coverage for extra protection. Protective Life is a financially strong insurer that received an A+ rating for financial strength. The company has been in business for over 100 years.
You can reach out to Costco customer service at 1-844-737-5433. The phone line is open from 8 a.m. to 7 p.m. EST from Monday to Thursday. The phone line closes early on Fridays, with the full hours being 8 a.m. to 6 p.m. EST.
Costco only offers term life insurance through its partnership with Protective Life. Term life insurance policies are 10 or 20 years. There isn’t much flexibility, but if you find what you are looking for, Costco Insurance may be a good option.
The chart shows Costco Life Insurance rates for men and women with excellent health who want $100,000 in total coverage. The male calculations in the example assume the individual weighs 200 pounds, while the female calculations assume the individual weighs 170 pounds. The consumer is also a Costco Gold Member.
| 10-Year Term | 40 year old | 50 year old | 60 year old |
| Male | $8.11 per month for the first 5 years $9.18 per month for years 6-10 | $13.60 per month for the first 5 years $15.47 per month for years 6-10 | $30.15 per month for the first 5 years $34.43 per month for years 6-10 |
| Female | $7.69 per month for the first 5 years $8.67 per month for years 6-10 | $12.29 per month for 5 years $13.94 per month for years 6-10 | $22.93 per month for the first 5 years $26.18 per month for years 6-10 |
Factors to Consider
You can choose from several insurance policies. Before you commit to an insurer, here are some things to keep in mind.
The Insurer’s Financial Health
Make sure the insurer has a good rating for their financial strength. A high rating means the insurer is more likely to have the financial resources to cover your policy. You want the process to be as seamless for your loved ones as possible if they end up using your policy.
The Premium
Consumers should review their monthly budgets to see how much they can afford toward insurance. Missing premium payments will nullify the policy, and if premium payments get in the way of essential expenses, you may want to choose a more affordable policy. You should check to see if your premiums qualify as tax write-offs.
The Coverage
Getting higher coverage results in higher premiums but also gives your loved ones more financial protection in case something happens. Each consumer must decide how much coverage they want and how much they are willing to pay for extra coverage.
How Much Does Term Life Insurance Usually Cost?
The cost of most 10-year term life insurance policies with $100,000 in coverage will fall below $20 per month. The costs vary based on your health and other factors. If you are younger, you may be able to get a plan for under $15 per month.
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Get the Extra Protection You Need
A Costco Life Insurance policy is more affordable for Costco members and gives your family extra financial protection. Not everyone needs an insurance policy, but it can act as a safety net that helps your family with their finances. It’s up to each consumer to decide how much they want to pay in monthly premiums and what amount of coverage is right for them.
Frequently Asked Questions
Is Costco a reputable company?
Costco is a reputable company that has been in business for over 40 years.
What is the rating for Costco Insurance?
Costco Insurance has an A+ rating for financial strength.
Are Costco and MetLife the same company?
Costco and MetLife are not the same company.
What is Costco known for?
Costco is known for affordable retail.
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Methodology
Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.
About Marc Guberti
Marc Guberti is an investing writer passionate about helping people learn more about money management, investing and finance. He has more than 10 years of writing experience focused on finance and digital marketing. His work has been published in U.S. News & World Report, USA Today, InvestorPlace and other publications.