When it comes to finding the correct life insurance coverage to meet your needs and provide for your loved ones after you pass away, it can be a difficult task. There are numerous insurance providers and products from which to pick. Which life insurance provider is the best? Is Costco a good place to buy life insurance? We want to provide answers to these questions, so read on to learn more about Costco Life Insurance in our Costco Life Insurance Review!
Costco Life Insurance
Costco Wholesale is one of the most well-known merchants in the United States, with memberships necessary, bulk purchases, and cheap, low costs. Costco has officially entered the life insurance market, so we’ll look at their products, financials, history, and ratings to determine if this is the right life insurance for you.
In actuality, Costco choose Protective Life Insurance as a partner to enhance the value, stability, and financial security of their life insurance. Will they, however, be able to offer their members a low-cost life insurance product? In order to understand how this all works, we’ll have to look at the Protective Life Insurance plan that Costco offers.
The Protective Life Insurance Company has been in business for over 110 years and currently has over seven million active policies across the United States. Every year, they pay out over two billion claims to beneficiaries, which is rather outstanding. That said, how will their stats compare to the greatest life insurance firms across the country now that they’ve partnered with Costco?
Protective’s Financial Situation
We need to look into Protective’s finances to see how well they are doing because they are the ones that provide the life insurance coverage, not Costco. Their financial situation is actually quite solid, as evidenced by their GAAP assets, which are worth well over $3.2 billion dollars, and the amount of life insurance they have purchased so far is well over $773 billion dollars, which is quite astounding!
Protective Life Insurance Rating
Costco would not have a rating from the many agencies that rate all insurance providers because they are not a life insurance company. As a result, we must investigate Protective’s evaluations from these organizations.
- M. Best has been rating insurance firms for a long time, and its ratings indicate how well a company will be able to pay all of its liabilities in the future. Costco has received a “AA-” grade from Protective, which is considered one of the best! This implies they are financially secure in a way that few other life insurance firms are.
- Both companies have received an A2 rating from Moody’s, which examines debts, liabilities, and overall credit ratings for insurance companies. Both Costco Life Insurance and Protective Life Insurance are in excellent financial shape, with debt ratings that have recently risen from Baa1 to Baa2, indicating continued market expansion.
- Standard and Poor’s, like Moody’s, assess a life insurance company’s financial ability to satisfy its future insurance policy commitments. Both of these companies have an AA- rating, which is the fourth highest out of 21 ratings, indicating that there should be no issues.
- Fitch evaluates a company’s financial ratings, and this insurance company received an A+ rating, the fifth-best out of 22. Needless to say, both organizations have an extremely amazing and successful financial ratings. Protective Life Insurance, which provides Costco Life Insurance, is a very safe provider to purchase a life insurance policy.
Last but certainly not least is the Better Business Bureau. The BBB examines numerous facets of customer service. Advertising difficulties, complaints, and a company’s history are among these factors.
Life Insurance Products at Costco
Anyone who has shopped at Costco knows that they have a huge selection of products for its members, ranging from groceries to electronics. They have maintained their policies simple now that they have entered the insurance market. When it comes to house and vehicle insurance, you’ll find they provide a variety of options to pick from. Furthermore, they provide a fantastic health insurance policy that you may want to investigate.
What about Costco’s life insurance? What are the many forms of life insurance that Costco offers?
Costco has only one modest life insurance policy on the books. Unfortunately, they only have one life insurance plan available right now, the Member Advantage Life UL Policy.
“Is Costco life insurance good?” is a question that most buyers are likely to ask. Let’s look at the new Costco Life Insurance plan in more detail.
Costco Member Advantage Life UL
This policy, they claim, comes with various perks that come with their term life products, all of which are quite reasonable. In comparison to comparable products in the life insurance sector, Costco claims you can save up to 20% on your coverage.
Costco offers a very flexible universal life insurance policy that lets you choose between 10 and 20 years of coverage, depending on your needs. Additionally, if your needs alter at any point during the insurance, you will have the option to extend your coverage before it expires.
In addition, depending on the length of your policy, you may qualify for an extended level payment term, which will lower your premiums for the first five years. Furthermore, unlike a conventional universal life policy, coverage amounts and premium payments can be changed throughout the policy’s lifetime.
Costco Member Advantage Life UL Disadvantages
You know what they say: if anything sounds too good to be true, it probably is. Costco claims that members will save 20% on life insurance, so let’s take a closer look at the details.
Increases in the interest rate
Only a Gold Star or Business Membership that is based on the first five years of the premium is eligible for the 20% discount. Your monthly premiums will increase at the start of the sixth year of the Member Advantage Life. The face amount will decline after their initial level benefit period until it reaches $10,000, at which point the premium will begin to rise again.
There is only one option.
Another disadvantage of Costco Life Insurance is that you can only have one firm and one policy. The issue is that you may desire something longer than a 10-year or 20-year coverage at some point in the future. You might decide that a 30-year term life insurance policy is better for you. You may possibly find that a whole life insurance policy or an indexed universal life policy is a better fit for your financial needs.
What about Costco’s no-exam life insurance? One of the downsides is that. In order to be approved for a Costco life insurance policy, you’ll need to take a medical exam. As we’ve previously stated, it’s usually a good idea to shop around for life insurance coverage before making a decision.
Costco Term Life Insurance
How about some evaluations of Costco term life insurance? Costco Life Insurance, unfortunately, only offers the Member Advantage Life UL universal life insurance coverage. At this time, there are no Costco term life insurance plans available. The Member Advantage UL, on the other hand, offers some term life features.
You have the option of choosing between a 10-year or a 20-year coverage. We’ll update those facts with new Costco term life insurance reviews if Costco offers a term option in the future.
The Advantages of Costco Membership
Whether you’re a current Costco member or considering joining, there are a number of attractive incentives that may make it worthwhile to join.
However, choosing a life insurance policy only on the basis of its benefits is never a wise idea. Whatever coverage you select, must fit your current and future needs. If you’ve concluded that this policy is a good fit for you, you should take advantage of the additional benefits.
Customer Service at Costco
Customer service is just as crucial as the insurance coverage you select. Without mentioning their customer service, our Costco insurance reviews would be incomplete. You should know that if you have a problem or want to make changes to your policy, you will be contacted by someone who will assist you. The last thing you want is to be directed to your nearest Costco! That said, there should be no problem because they have a variety of options for directing you to someone who can assist you.
Protective’s website offers a comprehensive FAQ section that will address all of your issues. If you require more information, each inquiry has a detailed answer or a link and email address. If you prefer to speak with a professional in person, Costco Life Insurance also includes an email address and a phone number.
Another great option is their “Talk to an Agent” live chat, which is ideal if you need quick assistance or attention for a pressing issue. You can also keep up with the newest news from the company or contact them through their social media sites, such as Facebook and Twitter.
To Sum It Up
Costco is a fantastic place to shop for food, beverages, and other household necessities. The major question is whether or not you want to purchase life insurance from Costco.
Costco and Protective Life Insurance are excellent companies for life insurance. However, you only have one product option. Make wise purchases by comparing prices from a variety of companies and items. For our readers, we review all of the main carriers at Life Insurance Blog. Other reviews include AAA Life Insurance, Genworth, ING Reliastar, and Liberty Bankers Life, to mention a few.
It’s always a good idea to shop around for the best policy for you, depending on what’s out there. You want to make sure you’re obtaining exactly what you want and that it’ll meet all of your requirements.
We hope you found this article useful in your search for the best life insurance policy for you and your family. Both Protective Life and Costco Life may be viable options for you to consider.
Always do your research and work with a licensed independent broker. We’ll assist you in obtaining unbiased estimates and information from dozens of top-rated life insurance companies across the United States.
If you’re still interested in learning more about your options, please give us a call, and we’ll gladly offer you further information.
We’ll get you quotes from Protective and the other of the country’s top carriers. We’ll use our years of knowledge to help you choose insurance that is a good fit for you and your family.
Reviews of Costco Insurance
Thank you for taking the time to read our Costco life insurance reviews. Please visit our website to learn more about life insurance.