Costco Life Insurance Review [2021]

Costco Life Insurance is offered through Protective Life. Costco life insurance for members is an affordable option to life insurance. Rates start as low as $9. Find out more in this Costco Life Insurance Review 2021.

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Benjamin Carr was a licensed insurance agent in Georgia and has two years' experience in life, health, property and casualty coverage. He has worked with State Farm and other risk management firms. He is also a strategic writer and editor with a background in branding, marketing, and quality assurance. He has been in military newsrooms — literally on the frontline of journalism.

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Reviewed by Benji Carr
Former Licensed Life Insurance Agent

UPDATED: Jul 19, 2021

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Protective Life Insurance Company Overview
Key InfoCompany Specifics
Year Founded1907
Current ExecutivesCEO – Richard Bielan
COO – Mike Temple
Number of Employees2,900
Total Sales / Total Assets$463,000,000 / $121,000,000,000
HQ Address2801 Hwy 280 South
Birmingham, AL 35223
Phone Number1-205-268-1000
Company Websitewww.protective.com
Premiums Written – Individual Life$2,406,628,653
Financial Standing$463,000,000
Best ForUniversal Life Insurance
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The wholesale giant Costco and nationwide life insurance provider Protective Life Insurance Company offer coverage at a discounted rate to Costco members. The above table shows the basic company info in Costco Life Insurance’s partner Protective Life Insurance.

Costco life insurance for members is an exclusive offer between two nationwide companies. 

Follow this guide to determine if Costco Life Insurance is right for you as you learn about the discount offered and other life insurance information from Protective Life Insurance. 

Start comparing life insurance quotes from companies in your area by entering your ZIP code. 

Costco Life Insurance 

If you’re thinking about getting life insurance and already a Costco member, do what that company loves doing best and bundle. Your membership gets you discounts from Protective Life Insurance. But what’s Costco Life Insurance? 

Costco members may seek income replacement or look to help their loved ones pay bills after they die. Life insurance can do that and more. 

  • Income replacement 
  • Home mortgage payment 
  • College tuition 
  • Eldercare 
  • Debt payment 

You may be the head of household, or in a partnership where you’ve accumulated a lot of death, either way, you don’t want to leave your family with a heavy load after you’ve died. Keep reading to learn more about Costco Life Insurance.

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Does Costco offer life insurance?

Costco has more than 750 stores and more than 90 million members nationwide.  This powerhouse created Costco Life Insurance by working with Protective Life Insurance to offer its members’ life insurance policies. Protective Life was established in 1907 in Alabama. 

Protective Life is a major name in the insurance world. It is in the top 20 companies with the most market share. 

Top 10 Life Insurance Companies by Market Share & Protective Life Market Share
RankCompaniesDirect Premiums WrittenMarket Share
1MetLife$10,877,337,0006.7%
2Northwestern Mutual$10,550,806,0006.5%
3New York Life$9,385,843,0005.8%
4Prudential$9,170,883,0005.6%
5Lincoln National$8,825,314,0005.4%
6MassMutual$6,874,972,0004.2%
7Transamerica$4,867,311,0003.0%
8John Hancock$4,657,312,0002.9%
9State Farm$4,636,147,0002.9%
10Securian$4,426,864,0002.7%
20DAI-ICHI Life Holdings Inc Grp (Protective Life)$2,450,639,1101.41%
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Protective Life Insurance Company is the Protective Life and Annuity Insurance Company’s parent company, West Coast Life Insurance Company, MONY Life Insurance Company, and Protective Property and Casualty Insurance Company.

Is Protective a good life insurance company?

Costco life insurance for members is provided by Protective Life through Member Advantage Life UL (or universal life).

Member Advantage Life is a universal life insurance policy that has a mixture of term life features.

Costco’s Member Advantage Life is a 10-year or 20-year premium policy. Depending on what level of life insurance policy you choose, the premiums and death benefit may be guaranteed throughout the chosen period.

This life insurance policy does require a medical exam and an underwriting review. However, there are circumstances where members can bypass this requirement.

When you enter your online application information, you will enter your age, location, health profile, nicotine use, and coverage type. This will begin the process to determine if you need a medical exam. 

Costco members are offered exclusive benefits for purchasing life insurance through the store. Keep reading to learn more about Costco’s Member Advantage Life.

Is Costco life insurance a good deal?

One pretty cool benefit to Costco life insurance is that it offers cheaper premiums for the first five years for both the 10 or 20-year period plans.

They will readjust at the six-year mark. 

  • Gold Star Members: $9.81 per month for the first five years, and from years six to 20 is $11.48 per month. 
  • Executive Members: $9.35 per month for the first five years and from years six to 20 is $10.88 per month. 

As you can see, the price doesn’t change much from year one to year 10 with Costco life insurance. These prices are also substantially lower than the average rate. Check out the model below. 

Average Term Life Insurance Modal Rates
Payment ModeModal FactorPeriodic RatesTotal Annual Rates
Annual1.00$1,000$1,000
Semi-Annual.51$510$1,020
Quarterly.26$260$1,040
Monthly.087$87$1,044
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Once the level term period is completed, you can either continue coverage at the same price. However, if you decide to keep the same, the death benefit will reduce every year until it reaches $10,000.

Some members may see a 15 percent discount, while if you’re a Gold Star member, you could see a benefit from a 20 percent savings on your life insurance policy.

What other coverage does Protective offer?

Protective Life is a major umbrella company that offers its own plethora of services. Costco members may feel secure knowing that it ranks in the top life insurance companies 

What are the top-rated term life insurance companies? Check out this table 

Top 10 Life Insurance Companies by Market Share & Protective Life Market Share
RankCompaniesDirect Premiums WrittenMarket Share
1MetLife$10,877,337,0006.7%
2Northwestern Mutual$10,550,806,0006.5%
3New York Life$9,385,843,0005.8%
4Prudential$9,170,883,0005.6%
5Lincoln National$8,825,314,0005.4%
6MassMutual$6,874,972,0004.2%
7Transamerica$4,867,311,0003.0%
8John Hancock$4,657,312,0002.9%
9State Farm$4,636,147,0002.9%
10Securian$4,426,864,0002.7%
20DAI-ICHI Life Holdings Inc Grp (Protective Life)$2,450,639,1101.41%
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Protective has three different insurance policies. 

The term life insurance plan is the most affordable option. This plan has guaranteed rates, which means your premiums won’t change throughout the period, and it provides an income-tax-free death benefit to beneficiaries.

This policy can be upgraded into a permanent policy if you’d like, but you will need to take a medical exam.

Other reasons to consider term life insurance:

  • It’s simple.
  • It’s affordable.
  • Long-term coverage. 

Universal life insurance policies offer flexibility to policyholders. Universal life insurance provides flexibility in your payments, in the use of cash value, and flexibility in the death benefit.

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