Costco Life Insurance Canada Review (2024)
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Discover the methodologyWe all know who Costco is, but did you know that Costco Life Insurance Canada exists? That’s right, Costco life insurance is available to all Canadian Costco members, their spouses, and employees.
But how good is it? More importantly, is it good for you? Well, read on as we review the Costco Life Insurance Canada plans, coverage, pros, cons, and premiums.
You can also use our comparator to compare plans from Canada's best life insurance brands and get free personalized quotes to help you decide if Costco is the right choice for you or if there's another plan that suits you better.
Costco Life Insurance Canada: 5 Key Points
- Costco teamed up with Manulife to offer affordable term life insurance
- Coverage ranges from $25,000 to $1,000,000
- No medical test is required for individuals under 50
- Costco life insurance quotes are available online
- Special discounts for Costco members
Our review on Costco Life Insurance Canada: Best option for Costco members
Costco life insurance, provided through a partnership with Manulife, offers affordable and flexible term life insurance options tailored exclusively for Costco members. It includes 5-Year Term Life, 10-Year Term Life, and FollowMe™ Life, catering to different life stages and needs. Coverage ranges from $25,000 to $1,000,000, with the flexibility to purchase in $25,000 increments.
Costco’s plans are particularly appealing for individuals seeking budget-friendly term insurance with added benefits like Living Benefits, Accidental Death Benefit, and the option to convert term policies into permanent coverage without medical exams.
Costco life insurance is an excellent choice for younger, healthy applicants or families seeking affordable coverage. For instance, non-smokers under 50 often benefit from streamlined approvals without medical exams, making the application process quick and hassle-free.
Executive Members also enjoy additional savings, with discounts of up to 5%, while all members can save 10% on coverage above $200,000. These features make Costco a competitive option when compared to traditional insurers like Sun Life Insurance or Canada Life, especially for members looking for straightforward term policies.
Costco’s FollowMe™ Life is ideal for individuals transitioning out of group life insurance plans due to job changes or retirement. This unique offering guarantees acceptance without medical exams if applied for within 60 days of losing group coverage. However, it caps coverage at $200,000, which may not be sufficient for those with larger financial obligations.
However, Costco Manulife insurance might not be the best fit for those seeking whole life insurance or individuals over 70 requiring higher coverage limits. Those interested in more extensive permanent coverage might find tailored solutions with competitors like RBC Insurance more suitable.
Expert advice
Costco life insurance is best for Costco members seeking affordable term life coverage with flexible options and discounts, especially younger, healthy individuals or those transitioning from group plans. However, it may not suit those over 70 or those needing permanent whole life insurance, as coverage limits and options are more limited compared to competitors.
Pros of Costco Canada life insurance
- Insurance plans offered by Manulife, a reputed provider
- No medical exams are required for individuals under 50
- Quick and easy onboarding process
- Discounts for Costco members
- Good coverage limits ranging from $25,000 to $1,000,000
- FollowMe™ policy dedicated to those who recently lost employer-provided life insurance
- Competitively priced for individuals 50+
Cons of Costco Canada life insurance
- No whole life insurance or universal life options
- Not suitable for those needing more than $1M in cover
- Only available to Costco members (a big drawback mentioned in Costco Life Insurance Canada reviews from customers)
- Not that competitively priced for individuals aged <45
If you want to weigh the pros and cons of Costco Life Insurance Canada against other providers, you can do it right here. Use our comparator below to compare the coverage of Canada's top life insurance policies and also get free quotes in seconds.
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What does Costco Manulife life insurance cost?
Costco life insurance costs are transparent and can be easily calculated using the Membership tables provided within their brochure (see below). To figure out your Costco life insurance cost all you have to do is multiply the premium rate listed for your age by the number of units of life insurance coverage you wish to have.
Each unit is $25,000 and you can only buy Costco life insurance in increments of $25,000. So if you want to have $100,000 in life cover, that would be equivalent to 4 units.
| Age | Non-smoker male | Non-smoker female | Smoker male | Smoker female |
|---|---|---|---|---|
| 18-30 | 2.35 | 1.89 | 3.59 | 2.79 |
| 35 | 2.51 | 2.06 | 4.09 | 3.18 |
| 40 | 2.92 | 2.41 | 5.44 | 4.53 |
| 45 | 3.80 | 3 | 8.18 | 6.43 |
| 50 | 5.12 | 4.26 | 13.73 | 8.69 |
| 55 | 8.08 | 6.99 | 20.63 | 12.24 |
| 60 | 14.53 | 9.99 | 33.52 | 18.5 |
| 65 | 26.62 | 15.32 | 53.41 | 30.39 |
| 70 | 38.26 | 31.62 | 78.55 | 54.79 |
Good to know
For example, let's take a Costco Executive member. A 35-year-old non-smoking female looking for $200,000 Costco term life insurance would expect to pay $16.48 a month prior to any Costco membership discounts being included. The calculation would therefore be:
2.06 x 8 = $16.48
2.06 is the rate for her age, multiplied by 8 as $200,000 is 8 units of $25,000.
For more detailed pricing, see the Costco Manulife life insurance brochure right here.
What types of life insurance does Costco offer?
Costco offers three life insurance products: 5-year Term Life, 10-year Term Life, and FollowMe™ Life. The 5 and 10-year life insurance policies are traditional term life insurance plans that cover you for a certain period, while the FollowMe™ Life policy is a term life insurance specific to individuals who have recently left an employer-provided life insurance plan.
Costco Term Life Insurance Canada Plans: An Overview
| Costco Life Insurance Canada | 5-year Term Life | 10-year Term Life | FollowMe™ Life |
|---|---|---|---|
| Eligible Applicant Age | 18-65 | 18-70 | 18-69 |
| Other Eligibility Requirements |
|
|
|
| Policy Termination Age | 75 | 80 | 80 |
| Minimum Cover | $50,000 | $50,000 | $25,000 |
| Maximum Cover | $750,000 | $1,000,000 | $200,000 |
| Guaranteed Premium | |||
| Costco Member Discount | 10% on coverage of $200,000 or more | 10% on coverage of $200,000 or more | |
| Costco Executive Member Discount | Up to 5% | Up to 5% | |
| Medical Exam Requirement |
|
| No medical exam required if applying within 60 days of losing group life insurance. |
5-Year Term Life Insurance
The 5-year Term Life Insurance plan is ideal for those looking for affordable, temporary financial protection for their loved ones. It’s especially suited for individuals securing their first policy or those looking to supplement existing coverage at a lower cost.
Features:
- Coverage amounts: Choose between $50,000 to $750,000 in $25,000 increments.
- Guaranteed rates for 5 years, renewing automatically without medical exams, even if your health changes. Coverage expires at age 75.
- Optional add-ons:
- Accidental Death & Dismemberment Insurance
- Income Protection Disability Insurance
- Living Benefit: Receive up to 50% of your coverage (up to $100,000) as a cash advance if diagnosed with a terminal illness (available after 2 years of coverage).
- Savings:
- 10% discount for coverage of $200,000 or more.
- Additional 5% savings for Costco Executive Members.
- Simplified approval:
- No medical tests for applicants under age 50.
- No tests for ages 51–55 for coverage up to $250,000.
- Non-smoker discounts available.
- Conversion option: Convert to permanent coverage anytime before age 75 without medical exams.
10-Year Term Life Insurance
The 10-Year Term Life Insurance plan is perfect for those entering life stages that require more stability, such as starting a family or managing large financial responsibilities like mortgages or children’s education. This plan ensures longer-term financial security at Costco members-only rates.
Features:
- Coverage amounts: $50,000 to $1 million in $25,000 increments.
- Guaranteed rates for 10 years, automatically renewing every 10 years without medical exams until age 80.
- Included benefits:
- Accidental Death Benefit: Provides an extra 25% of the life coverage (up to $250,000) in case of accidental death.
- Job Loss Waiver of Premium: Waives premiums for up to 9 months if you or your spouse lose your job.
- Living Benefit: Cash advance of up to 50% of coverage (max $100,000) for terminal illnesses, available after 2 years of continuous coverage.
- Simplified approval:
- No medical exams for applicants under age 50.
- No tests for ages 51–55 for coverage up to $250,000.
- Non-smoker rates and a 30-day free-look period.
- Conversion option: Convert to permanent coverage before age 80 without medical exams.
FollowMe™ Life Insurance
FollowMe™ Life Insurance is designed for those who are losing their group life insurance due to retirement, job loss, or career changes. It’s best for individuals seeking affordable, guaranteed coverage without the need for medical exams during the application process.
Features:
- Guaranteed acceptance: No medical exams or health questions if you apply within 60 days of your group coverage ending.
- Coverage amounts: $25,000 to $200,000, based on your previous group plan.
- Renewable up to age 80, ensuring continuous protection as long as premiums are paid.
- Living Benefit: Access up to 50% of your coverage (max $50,000) if diagnosed with a terminal illness, available after 2 years of coverage.
- Affordable rates tailored to your needs, with no cancellation as long as premiums are paid.
Is there a Costco Whole Life Insurance Canada plan?
While Costco does not have whole life insurance, they do offer term life insurance with a conversion option. The conversion option allows policyholders to convert their term life insurance policy to a permanent whole life insurance plan before the age of 75. A new medical exam is not required in order to convert the policy.
If you are interested in shopping for whole life insurance you can do it right here. Use our comparator below and get over 20 free personalized quotes for whole life insurance and decide upon a policy that is tailor-made for your unique needs.
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How to get a Costco life insurance quote?
Before picking Costco life insurance get 20 quotes from Canada’s other leading life insurers using HelloSafe’s comparison tool above. It's quick and free to use.
To get a Costco life insurance quote, head to Costco Canada’s website and click through to their insurance services page. Once there, click on the Manulife Term Life Insurance link which will redirect you to the joint Manulife Costco life insurance website where you can get an instant quote by simply entering some personal information.
How to contact Costco Life Insurance customer service?
Costco Manulife Life Insurance has a dedicated customer support system and contact details for all its members. You can contact them anytime between 8 am and 8 pm ET via telephone, or by mail or email. Manulife Costco insurance details are listed below.
| Contact Method | Costco Canada Life Insurance Contact Details |
|---|---|
| Telephone | 1-866-707-4922 |
| [email protected] | |
| ManulifeIndividual InsurancePO Box 670, STN Waterloo, Waterloo, ON, N2J 4B8 |
While the life insurance may be bought through Costco, any policy will be administered and serviced by Manulife as they are the insurance provider. Costco life insurance reviews are therefore often tied to the performance and customer service of Manulife.
How much Costco life insurance do I need?
It isn’t always easy knowing exactly how much life insurance you need to cover your loved ones in case the worst was to happen. That’s why HelloSafe has developed a life insurance calculator to help in just such situations. Try it now to find out exactly how much coverage you need.
Manulife has also developed a life insurance calculator that can be accessed by those considering Costco Canada life insurance. Simply head to the designated Manulife Costco life insurance website mentioned above and follow the links to their life insurance needs calculator. On the website, you can provide details surrounding your current financial situation and you will receive a recommendation on the amount of life insurance you may need.
