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MARCH 2021

Your guide to beneficiaries, wills, and trusts

No matter where you are in your life, everyone can benefit from estate planning. Often people think that estate planning is just for the wealthy, for those approaching retirement age, or for those who have children.

However, only about 50 percent of employees have designated a beneficiary (a person or entity who will receive those benefits in the event of your death).

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Almost all Costco employees have life insurance

That’s right! All full-time and part-time employees enrolled in a Costco medical plan, even those who declined coverage because they’re enrolled by another employee or health plan, have life insurance and an accidental death and dismemberment (AD&D) policy that’s paid for by Costco. However, only about 50 percent of employees have designated a beneficiary (a person or entity who will receive those benefits in the event of your death). Without a designated beneficiary, your life insurance may not go to the correct person — or your loved ones will have to take extra steps to access your life insurance. Therefore, it’s important for all employees to designate their life insurance and AD&D beneficiaries by logging onto the enrollment website located on Costcobenefits.com or calling the enrollment center at 800-541-6205. Employees can view and update beneficiary information at any time.

Don’t forget your retirement accounts

Most employees also have a 401(k) or 1165(e) account through Costco’s Retirement Plan. Just like life insurance and AD&D, it’s important for employees to designate a beneficiary for their Costco retirement account. (There are some special rules about designating a retirement account beneficiary when you’re married.)

To learn more about beneficiary and eligibility rules, view the Costco Retirement Plan Summary Plan Description located on Costcobenefits.com. To designate a beneficiary to your Costco Retirement Account, log on to TRowePrice.com or call 800-922-9945.

Learn about wills, trusts, and other estate planning

Designating a beneficiary takes care of your life insurance, AD&D, and retirement plan through Costco’s Benefit Program. But what about your other assets like your house, cars, collectibles, bank accounts, and other investments? And what happens if the unlikely event your death occurs before your children are adults, or you become unable to make financial or health care decisions for yourself?

Wills and trusts ensure that your assets and possessions end up where you want them to go. If you have children who are minors, you can also make a will to name who will be your child(ren)’s physical and financial guardian.
Durable power of attorney and health care directives give the person you choose the ability to make decisions for you regarding your health care, legal matters, and finances if you become incapacitated or unable to communicate your own wishes.