“Costco has that?” It’s a well-known joke that the retail giant sells almost everything, but did you know they also sell life insurance? You may think that Costco Life Insurance would be a bargain, but we don’t believe it’s the best choice for seniors for several reasons.
Unfortunately for seniors, Costco Life Insurance is only available as term life insurance through the major provider Protective. Though Protective is a fine provider, term life doesn’t match seniors’ needs.
At Final Expense Benefits, we recommend burial insurance to seniors, a type of whole life insurance better suited to reliably covering their needs at affordable rates.
If you’d like to learn more about burial insurance and other life insurance options, call us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET, or check our free online quoting tool for a personalized pricing estimate.
Key takeaways
Costco offers life insurance managed by the large insurer Protective.
Costco policies are only available as term life insurance.
Though Costco Life Insurance rates are about average, term life isn’t the best choice for seniors.
Costco’s policies aren’t available as burial insurance — a much better choice for seniors.
What is Costco Life Insurance from Protective?
Costco is well-known for having just about anything you need, from food to clothes and furniture. Costco partnered with the major life insurer Protective Life Insurance to cover another important gap: life insurance.
Known for low rates, Protective has been in business since 1907 and is currently headquartered in Birmingham, Alabama. Similar to other major life insurance companies like New York Life and Prudential, Protective offers a variety of financial and retirement products, such as annuities.
Costco Life Insurance Coverage Options
Though Protective offers a wide range of life insurance options including whole life and universal life insurance, term life is the only coverage option for their partnership with Costco. Here’s our review of Costco’s term life insurance:
1
Costco Term Life Insurance
Unlike policies with permanent coverage like whole life insurance, term life plans only cover for a specified period, usually 10 to 30 years. Costco term life insurance is available in 10, 20, and 30-year terms, with coverage ranging from $100,000 to $5 million.
Term life insurance benefit payouts are so large because these policies are usually used by young adults and workers as income replacement in case of death. Because they’re focused on use by younger, healthier applicants, term life insurance rates are normally low, but health requirements are strict.
Many policies require medical exams, unlike most whole life and burial insurance plans. Costco’s term life plan sometimes doesn’t require a medical exam depending on your age and the amount of coverage you’d like. Applicants ages 18 through 45 seeking up to $1 million don’t need an exam if they meet Protective’s requirements. The same goes for 46 to 60-year-old applicants looking for up to $500,000 in coverage.
2
Costco Term Life Introductory Discount
Costco offers term life insurance with an introductory discount. This discount applies to the first five years of monthly premiums, then rates rise to the rate you’ll pay for the term’s remainder. Once the term is over, you’ll have to renew or pay for yearly coverage.
This is the major problem that seniors have with term life insurance. If you outlive your coverage, you’ll have to renew the term. Unfavorable medical requirements and underwriting mean that seniors have to pay high rates for term life policies. Seniors with pre-existing conditions may not be eligible at all.
Costco Life Insurance Rates
Unlike many insurers, Protective shares sample rates for their term life insurance plan. Rates vary by Costco membership level.
These reflect monthly rates for a $250,000 20-year term policy, calculated using a non-smoking 40-year-old male applicant with no pre-existing conditions:
| Term Period | Costco Gold Star Membership | Costco Executive Membership |
|---|---|---|
|
Term Years 1 – 5 |
$19.04 |
$18.28 |
|
Years 6-20 |
$20.83 |
$20.83 |
Protective states that these rates are for an applicant in the preferred health class, but it’s unclear how strict their underwriting health requirements are. Seniors often have difficulty qualifying for term life insurance, but burial insurance is built to accommodate managed health issues like diabetes or high blood pressure.
If you’re interested in learning more about burial insurance, contact Final Expense Benefits or check our free online quoting tool for a pricing estimate.
Costco Term Life Insurance Pros & Cons
Pros
- Online application
Protective offers an easy online application process for Costco term life insurance. - Discounted Costco member rate
Costco members enjoy a reduced rate for their policy’s first five years. - May not require a medical exam
A common practice for term life insurance, qualifying applicants seeking smaller payouts don’t need to take a medical exam to apply. - Online sample rates
Protective Life Insurance shares sample rates for the Costco term life policy, making it easy to compare their rates with other quotes.
Cons
- No insurance riders
Life insurance riders offer simple, accessible customizability to policies, but Protective offers no riders on the Costco term life policy. - Only term life insurance
Though Protective offers whole life insurance, Costco Life policies are only available as term life insurance, which poorly fits seniors’ needs. It’s disappointing that Protective doesn’t offer a wider range of options for their partnership with Costco. - Unfavorable underwriting practices
Seniors with pre-existing conditions are rarely eligible for term life policies and will likely have difficulty qualifying for Costco term life policies. Several customer reviews complain about issues qualifying, despite being in good health. - Average rates
Though Costco Life Insurance rates have a discounted five-year introductory period, they’re overall average for term life insurance. - Poor customer service ratings
Though third-party rating services are overall positive for Protective Life Insurance, some customer reviews report major issues with payouts and customer service.
Costco Life Insurance Reviews: Third-Party Rating Services
AM Best Rating
1
AM Best assesses life insurance companies’ credit and ability to meet financial obligations with the goal of protecting consumers. AM Best rated Protective A+, indicating strong financial reliability for Costco’s partner.
NAIC Rating
2
The National Association of Insurance Commissioners (NAIC) tracks customer complaints against life insurance companies and rates them on their yearly complaint index. Ratings range from 0 to 10, and insurers should aim to be rated below the average of 1.
The NAIC rates Protective Life Insurance 0.57, indicating strong, reliable customer service.
BBB Rating
3
The Better Business Bureau (BBB) helps customers find trustworthy businesses by tracking customer complaints and offering complaint resolution services for customers and businesses. Their rating scale ranges from F to A+.
Protective Life Insurance isn’t BBB accredited. However, they do have an A- BBB Rating, indicating decent customer relations ability. However, BBB customers rate Protective 1.14 out of 5.
Costco Life Insurance Reviews: Customer Ratings
These ratings reflect customer opinion on Protective Life Insurance overall, not just Costco’s options.
Ashley H
1/5
Their service is absolutely horrible. My father has 2 policies with them, we’ve been trying to view his policies online and change his beneficiaries for weeks and have not been able to. We called the customer support number, and were told to send an email, I emailed multiple times, no response. They make it extremely difficult to get any kind of assistance. I’m very nervous now for how difficult it’s going to be when the time comes to make a claim.
Nancy O
1/5
Protective Life Insurance Company does not deserve even one star. My husband passed away in January 2024. They were contacted the same day he passed away. We have filled 7 packets which include a W-9 form, Quick claim fraud form and death certificates. The funeral home has filled out 2 packets that have included the same W-9 forms, Quick claim fraud form and death certificate. I call weekly to get updates of the progress of payment and EVERY week I get a different answer.
I have sent a letter and have been told on 3 occasions that a processor would call me back. One never called. All I am asking is the policies that I have paid for be processed AND PAID in a timely manner. This is the worst insurance company I have ever worked with. I do NOT want an apology or excuses. I want the money that is OWED to me.
Julie B
1/5
I spent months applying for a term life policy on myself … gave them everything they needed. Got lab work done, etc. I’m in perfect health. They denied me coverage … referring to a dr visit in which they say I was “diagnosed” with something. They wouldn’t say what. In reality I was diagnosed with nothing! Their reason was completely bogus and fabricated . I tried to reach out to them and got stonewalled at every turn. No one returned my calls. Everyone I asked to speak with was “unavailable”. This company is a scam!!! Get your insurance somewhere else!
Burial Insurance: The Best Choice for Seniors
Also called final expense insurance, burial insurance is usually the best choice for seniors looking for life insurance. It offers dependable, affordable coverage with no waiting period, even to seniors with pre-existing health conditions.
Nursing home-bound seniors or those with major health concerns like cancer, dementia, or terminal illness can still get coverage, as some policies guarantee acceptance.
Burial insurance benefit payouts are lower to help maintain accessibility, ranging from around $5,000 to $50,000. Seniors usually use life insurance to cover their end-of-expenses like funeral, cremation, and burial plot costs, and burial insurance payouts are plenty to cover those needs or leave an inheritance to loved ones.
Plus, all burial insurance policies are whole life, so premium rates are locked at the policy’s start, they grow in cash value, and benefit payouts will never decrease.
Burial Insurance Sample Rates
Final Expense Benefits is proud to partner with over 20 of the best burial insurance companies and to provide the resources you need to make a great life insurance choice. Check our funeral cost calculator to see how much coverage you need.
Below are sample quotes from some of our top partners for a benchmark $10,000 burial insurance policy using a non-smoking applicant with no pre-existing medical conditions:
| Company |
Male 50y/o |
Female 50y/o |
Male 60y/o |
Female 60y/o |
Male 70y/o |
Female 70y/o |
|---|---|---|---|---|---|---|
|
$34 |
$27 |
$50 |
$40 |
$70 |
$56 |
|
|
$31 |
$26 |
$43 |
$35 |
$71 |
$53 |
|
|
$31 |
$24 |
$44 |
$33 |
$75 |
$53 |
|
|
$34 |
$29 |
$45 |
$35 |
$79 |
$59 |
|
|
$33 |
$26 |
$48 |
$36 |
$82 |
$58 |
These figures are estimates only, based on a $10,000 final expense insurance policy with no applicant pre-existing conditions.
If you’re interested in these or any of our great life insurance partners, call us at (866) 786-0725 or check our free online quoting tool for a personalized pricing estimate.
Final Thoughts
Costco Life Insurance may seem like a bargain option, but it’s not a great option for several reasons. Term life insurance generally isn’t great for seniors, and Costco term life’s limitations make it a poor choice overall.
Seniors seeking life insurance will do much better with burial insurance, which offers benefits and medical requirements better focused on seniors. As experts in the burial insurance market, Final Expense Benefits can help you find a great policy at any budget.
To learn more about life insurance, call us at (866) 786-0725 Monday through Friday, 9 a.m. to 5 p.m. ET, or check our free online quoting tool.
FAQ
Does Costco offer life insurance?
Costco offers term life insurance with Costco member-exclusive rate discounts through a partnership with Protective Life Insurance.
Is Costco Life Insurance good?
Costco life insurance is average for term life insurance, but has little customizability and may not line up with seniors’ needs.
How much is Costco Life Insurance?
Costco Life Insurance rates are about average for term life insurance and have a five-year introductory discount.
What is term life insurance?
Term life insurance covers specific periods, usually 10 to 30 years. Once the term ends, the policy must be renewed to continue coverage. These policies offer large death benefits and are usually used by young adults as income replacement in case of death.
What is burial insurance?
Burial insurance is a low-cost type of whole life insurance designed to offer seniors accessible, affordable coverage. Average benefit payouts range from around $5,000 to $50,000 and are typically used to cover costs for funerals, cremations, burial plots, and other end-of-life expenses.
How much does a funeral cost?
In 2025, average funeral costs in the U.S. are around $10,000, which is why most sample burial insurance quotes are for $10,000 policies. Check our free funeral cost calculator to see how much coverage you need.