Costco Life Insurance Reviews
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Costco Life Insurance Review

Costco life insurance reviews are all over the internet.  Sorry to add one more to that list.  We do promise, however, that this will be the only review of Costco Life Insurance company that you will need.

We are going to take you behind the scenes with Costco, dive into products and give you the inside scoop on everything you need to know.

However, we always recommend that if you are trying to save time that you should stick to comparing rates and quotes with all life insurance companies.

You can do this easily below using our instant life insurance quotes rate engine to compare rates with 50 of the top rated life insurance companies.

Costco Life Insurance will even be one of the options for the rates displayed that you can view depending on the parameters and coverage amount you are searching for.

Costco Life Insurance Reviews, The Company Behind the Company

You see, Good Life Protection likes to review all life insurance companies.  We want to know who’s the best life insurance company and why, so we can relay it to you in a jiffy.

This ultimately helps you make more informed decisions that will ultimately place you in a great spot to protect your family with the correct life insurance coverage.

Without knowing the needed information or having unbiased reviews existing for a company like Costco, how would you know what to do?  You wouldn’t.  That’s okay.

Let’s start breaking down Costco Life Insurance Company and cover everything you need to know.

We do this frequently and for an accurate reading on how we evaluate life insurance companies, you can always visit our insurance carrier review criteria here.

About Costco Life Insurance and What Costco Life Insurance Is

Costco is also known as Costco Wholesale Corporation.

It’s an American Multinational corporation and operates a chain of warehouse clubs that are “membership only” as a barrier of entry to the insurance products.

Beginning in 2015 Costco was the names the second largest retailer in the world following behind Walmart.

They currently sit at #15 on the Fortune 500 in the United States based on total revenue and soon plan to expand to China in 2019.

All of this sounds too good to be true but let’s revert to the title of this article.

We don’t care what Costco is doing around the world, and the amount of packaged meat, extensive selections of wine and the fact you have a beautiful membership card don’t mean a darn thing when it comes to purchasing life insurance.

Just meaning, don’t use Costco for your life insurance needs without understanding the company and reviewing all options.

We will cover the basics of why here shortly.

Don’t Limit Your Choices Shopping For Life Insurance

When you see and select the option to use Costco for your life insurance you run into one major issue.

You have no choices. 

They wholesale with one life insurance company and that it’s.

We will admit that the one company they do partner with is a good life insurance company, but that doesn’t mean you should go through Costco to get it done.

When you do this, you handcuff yourself to one company and one only.

If it doesn’t work out or come back favorable or how you would like it to, where are you going to go?

I’ll tell you where.


You won’t be afforded that option if you go with Costco initially.

Plain and simple.

So, let’s forget about Costco being an option momentarily and move onto whom they partner with and how it works.

The Behind the Scenes Look and Costco and Protective Life Insurance Review

Again, Costco is not going to present you with a nice large variety of life insurance companies to work with.

They are going to offer you one.

Protective Life Insurance Company

First and foremost, if you need more information on Protective Life Insurance Company, you can use the link below.

Full Protective Life Insurance Review.

Let’s also make sure to add this disclaimer again.

We are not directly tied to Costco Life Insurance or Protective Life Insurance.

In fact, Protective Life Insurance is one of our favorite life insurance companies to work with.

We use them all the time, and they have some very good underwriting niches to work with as well as competitive pricing and products.

Again though, you have an issue.  Using Protective Life Insurance Company for your coverage is perfectly fine but not when you can pivot if need be.

Protective Life is not going to be the best company for you for many reasons.

There may be reasons why they may be the best, but for the most part, options with life insurance companies after your medical exam is the number 1 option or road to take when purchasing life insurance.

Otherwise, you might as well call “Jake” from State Farm and pay the crazy high prices they have to offer.

It may ultimately turn out the same with whichever of those options you take.

No options or working with a Captive Company ultimately lead to higher prices and a higher number of life insurance policies declined, not taken or eventually lapsed and dropped.

It’s that simple folk. Trust us.

We have helped thousands of individuals with life insurance, so we have been around the block a few times and seen a few things.

It’s not a good idea.

Costco Life Insurance Medical Exam and Being Handcuffed to One Option Only Explained Further

So, we already know that Costco is partnered with Protective Life and Protective Life only.

Let’s cover the first biggest issue as to why this may pose problems after completing the life insurance medical exam.

Underwriting Guidelines with Costco Life Insurance (Protective Life Insurance Co)

All right so you have decided to try using Costco for the discount or price break.  Here are the problems you are going to run into.

Protective Life Insurance is not known for being great with the following.

Tobacco Use

Did you recently quit smoking or possibly even have a cigar from time to time?

Is there any chance that your blood test for the life insurance medical exam will come back positive for nicotine?

If so, you have already made the wrong decision and should have taken the advice to use an option like Good Life Protection or another independent Life Insurance Agency because your rates are about to double.

Protective Life insurance is not a company for tobacco users.

They have long wait periods for the quitting smoking timeline, and they also allow for fewer cigars, chewing tobacco and other forms of nicotine to be used without slapping you with the tobacco rating.

What do I mean by this?

Companies such as Lincoln Financial Group or even Prudential Life Insurance and AIG will allow for some of these other forms of tobacco use but not Protective.

Don’t use Costco if you have used tobacco in the last 1-5 years or use other forms of tobacco outside of just cigarettes.

We can still get you non-smoking or non-tobacco rates with another life insurance company outside of Costco and Protective if this is the case.

See our Full AIG Life Insurance Review Here.

Family History Underwriting Guidelines with Costco and Protective Life Insurance

Family history is another spot it may not be a good idea to use Costco and Protective Life Insurance as your primary option when purchasing life insurance.

Many life insurance companies phrase this question about family history on the life insurance application like this “has anyone in your immediate families such as mom, dad, sister or brother passed away before the age of 60 due to heart problems, cancer or diabetes? 

If the answer is no, you would be good to qualify for top rates with many other life insurance companies.

Not Protective.

If your mom, dad, sister or brother has been had one of those items listed about, but is still alive and doing just fine, they will not allow you to achieve top life insurance rates which ultimately means you’re paying more for the coverage because your mom had breast cancer 12 years ago but is currently doing incredible.

Not fair I know.

However, that doesn’t make them a bad life insurance company.

It’s just how the underwriting guidelines work with Protective Life.

Protective Life can easily still be the best life insurance company for you, hands down if you fit all the criteria.

The only way to ultimately know if you fit all the criteria is by working with an independent agency or agent to get the job done.

Let’s Review more medical and underwriting issues Costco and Protective Life may Cause You.

PTSD (Post Traumatic Stress Syndrome) Mental Disorders and SSDI

This is another downfall of Protective Life Insurance.  In all honesty, this won’t be easy with any life insurance company, so we can’t fault Protective too much for this, but many other companies will at least look at the full scope of the situation.

Here is an article about life insurance with PTSD in case you needed further help with this scenario.

Simply meaning if you had SSDI or PTSD and applied with a company such as Prudential, they would evaluate the case based on how it’s currently impacting your life.

If you are.

  • Stable
  • Working Full Time
  • No Bankruptcies
  • No Criminal Record
  • No Major Medication Swaps in the last 6 months

Then, other companies you have a chance at approval with, it just may cost more.

With Protective Life, it’s not going to be approved, unfortunately.

The only way to fight back against this is by working with an independent agent with access to all these companies and again, going with Costco life insurance isn’t going to get the job done in this situation.

Hate to break it to you.


This falls into a similar basket as the PTSD we just discussed.  If this is you, save the time and money by applying independently.  Sure, you have a chance at being approved but at the end of the day, it’s unlikely and the rates will be too high.  Keep all your options on the table.

Sleep Apnea

Sleep apnea is a health condition you would want to leave heavily on a company like Prudential Life.

Not Protective.  

Guess whom Costco doesn’t allow you to apply with?


See Full Prudential Life Insurance Review Here.

Anyone but Protective so again, Costco is not going to be the winner for anyone who is battling sleep apnea or anyone who was recently diagnosed with sleep apnea.  Rates can get expensive if you fall into this boat so weigh your options carefully.

Type 2 Diabetes

Type 2 Diabetes is another niche underwriting area that you would be much better served looking elsewhere outside of Protective Life.  Banner Life Insurance and even AIG will offer more competitive rates than Protective in this category, so this is another example to shy away from Costco.

Cancers, Including Prostate Cancer

Cancers are extremely delicate underwriting situations.

They require medical records and in-depth Q&A time between you and the agent and life insurance agency.

Having 1 option in this scenario is a huge mistake and will cost you either a declined application or many extra dollars to pay for the policy once approved for the coverage.

Let’s move onto to a few other items we need to cover about Costco.

What Products does Costco Offer and How do I get Costco Life Insurance Quotes?

Costco isn’t technically offering you any life insurance products.

Protective Life Insurance is. 

With Costco will be able to provide you with the same coverage as Protective.

Just meaning, there is no such thing as Costco term life insurance. It doesn’t exist.  However, Protective Life offers,

  • Term Life Insurance
  • Universal Life Insurance (Advantage Choice Universal Life)

These are your big 2.

Outside of these another carrier outside of Protective and Costco is most likely the best idea for you.

Here’s an overall look at the Costco Pros and Cons

Working with or through Costco Life Insurance Pros

  • Protective Life Is A Strong Life Insurance Company.  If it fits, no harm no foul
  • Possible Membership Savings
  • Easy as 1,2,3

Working with Costco Life Insurance Cons

  • No options, likely paying more for coverage or getting declined
  • No future Service, no independent life insurance agent servicing your policy
  • High potential for increased premiums or a declined life insurance application

Use an Independent Life Insurance Agent Instead of Costco Life Insurance

Can you call Costco right now and complete the application and be done with it?


Whom do you plan to call when you have issues with the policy?

A plumber?

The customer service rep at Protective Life sitting in a call center?

Neither of these is desired alternatives so don’t put yourself in that situation.

Work with an independent agency and agent model.

We service our policies.

We call you on your anniversaries to make sure life event hasn’t changed, or needs haven’t altered down a new road?

We may even send you the cheesy Christmas card…Depends on the year…Kidding, of course.

We help you achieve the best rates. Dead Serious about this one!

Here is how you contact Costco and Protective Life Insurance- Costco / Protective Life Insurance Contact Phone Number- 1-844-740-5433

So, after reading this Costco Life Insurance Review…What are you going to do?

Listen, there is nothing wrong with Costco, or Protective Life Insurance.

I love Costco for many reasons outside of life insurance, and I probably write Protective Life Insurance business for 40% of my total of business.

Both are reputable companies.

However, I do dislike you not having options, someone in your corner and someone not able to help if things take a sour turn during the underwriting process.

It’s not my call to make, however.

The choice is ultimately yours.

We even provided you the Costco contact information above, so you have a head start in case we didn’t make a strong enough case for the independent model you should choose.

Get your Costco Life Insurance Quote here!

Regardless of what option you choose, we appreciate you stopping by and reading. Leave a comment below with additional questions or fill out the quote form on the right for your possible rates with over 60 of the largest life insurance companies.