Costco Life Insurance Review [2024]

What You Should Know About Ameriprise Auto & Home Insurance (Costco)

Life insurance is one of the many services Costco offers its members, but it doesn’t cover the needs of every customer. Costco doesn’t sell life insurance directly – instead, Protective Life underwrites policies for Costco members.

Costco life insurance costs tend to be lower than many other companies, but it only sells term life policies. Although it only sells term policies, Costco offers several types of life insurance riders so customers can customize their plans.

Learn more about your options by exploring the Costco life insurance review below. Then compare quotes with as many companies as possible to find the right plan for you.

Costco Life Insurance Pros and Cons

It’s always important to compare your options when buying life insurance. One of the best ways to quickly determine if a company is right for you is to look at the pros and cons. When you buy a policy using your membership, Costco life insurance benefits include the following:

• Costco life insurance quotes tend to be about 15% cheaper than other companies
• An accelerated life insurance death benefit is available for some customers
• Costco members can apply online

For as many advantages as Costco’s life insurance offers, there are also a few drawbacks. Before signing up for a policy from Costco, you should be aware of the following cons:

• The only coverage option is Costco term life insurance
• You must be a Costco member to purchase a policy
• Costco life insurance premiums increase after five years

While keeping these pros and cons in mind is helpful, you’ll need more information to determine if Costco life insurance is right for you.

Costco Life Insurance Customer Service and Financial Ratings

Generally speaking, Costco life insurance receives good ratings for its customer service and financial strength. A.M. Best rates Costco life insurance with an A+, meaning you don’t have to worry about your beneficiaries receiving your death benefit.

The National Association of Insurance Commissioners (NAIC) rates companies on the number of complaints they receive compared to their size. Costco has a very low rating of 0.19, meaning it receives fewer complaints than similarly-sized companies. In particular, customers report high levels of satisfaction with Costco life insurance claims handling.

Ameriprise Auto & Home Insurance (Costco) Insurance Coverage Options

Although there are many types of life insurance policies on the market, Costco only sells one — term life. One of the reasons why Costco is one of the cheapest life insurance companies is that it only offers one plan. Unfortunately, there is no Costco whole life insurance.

Term life insurance covers you for a set period. Costco members have the option of a 10 or 20-year plan ranging in coverage between $100,000 and $5 million. Like most life insurance policies, you’ll probably need to undergo a medical exam before signing up, typically including an interview and bloodwork.

However, some Costco members might be eligible for accelerated underwriting, which means they can skip the medical exam. When it comes to how much term life insurance you can buy with accelerated underwriting, it depends on your age. 18 to 45-year-olds can purchase up to $1 million, while people aged 46 to 60 can buy up to $500,000.

Unfortunately, you won’t be able to buy life insurance with accelerated underwriting from Costco if you’re over 60. If you’re interested in no-exam life insurance when you’re older, consider Colonial Penn life insurance for seniors.

Costco Life Insurance Riders

Although Costco only offers one type of life insurance, it has several riders to choose from. These include:

• Accidental death benefit. This rider increases your monthly rates but will pay your beneficiary a larger benefit if you die in a covered accident.
• Children’s term. You can add coverage for a child under the age of 18. Once they come of age, their coverage ends, but they’ll have the option of converting into a separate policy.
• Terminal illness accelerated benefit. Purchasing this rider allows you to use up to 60% of your death benefit to cover medical expenses if you become terminally ill. This rider is automatically included in your policy for no extra charge.
• Waiver of premium. Policyholders between 18 and 55 can add this rider to their policy for an extra cost, which suspends your premiums if you become disabled.

While there are only four riders available, most customers appreciate the opportunity to customize their policies.

How to File a Costco Life Insurance Claim

Filing a Costco life insurance claim is easy, with two options available. You can use the Protective online claims tool or call the claims number at 800-424-1592. You’ll need the policy number and policyholder details to make a claim.

Costco Life Insurance Online Offerings and Mobile App

Although Protective Life has a mobile app, it’s designed to manage auto insurance policies rather than life plans. However, you can manage your account through the Protective website.

Ameriprise Auto & Home Insurance (Costco) Insurance Rates Breakdown

As far as term life insurance companies go, Costco offers its members very affordable prices. For example, Costco term life insurance quotes for a $250,000 policy average $13 per month for 45-year-olds.

To get an idea of how much you might pay for your insurance, check out the rates below.

Costco life insurance rates are generally affordable, but some customers see higher average prices. For example, Costco life insurance for seniors can be much pricier than policies for younger adults.

Customers should also be aware that their rates will increase after the first five years. Usually, the rate increase is small, but it can come as a surprise if you’re not expecting it.

Ameriprise Auto & Home Insurance (Costco) Discounts Available

Costco doesn’t list any discounts available to its customers, but you’ll automatically see some savings as a member. The average Costco member sees a savings of 15%, which you can see in the prices below.

It’s also unknown if Protective Life offers discounts that Costco members can take advantage of. Still, you can learn more about the possibility by looking at the Protective Life insurance review.

How Ameriprise Auto & Home Insurance (Costco) Ranks Among Providers

When comparing Costco life insurance vs. other companies, you might feel overwhelmed by your choices. While there’s a lot to consider when shopping for coverage, comparing average rates is a great place to start. Check below to see how Costco rates compare with other companies.

Although Costco has cheaper rates across the board, keep in mind that your prices will increase after the first five years.