Is Costco Life Insurance Canada Worth It? 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 Takeaways
- Between a 10%-30% discount for Costco members
- Costco teamed up with Manulife to offer good term life insurance products
- Costco life insurance quotes are available online
- No medical test required for individuals under 50
- Coverage ranges from $25,000 to $1,000,000
Our review on Costco Life Insurance Canada: Best option for Costco members
Costco Canada is a well-known wholesale supplier of anything from food to furniture, electronics, and jewelry. It is lesser known for offering life insurance to Costco members, spouses, and employees. In order to be able to provide insurance to its members, Costco partnered with Manulife Insurance, one of the biggest insurance providers in the world.
In association with Manulife, Costco offers three term life insurance products: 5-year Term Life, 10-year Term Life, and FollowMe Life. With discounts ranging from 10% to 30%, Costco provides cost-effective solutions, especially for individuals aged 50 and above.
The inclusion of no medical exams for those under 50 streamlines the application process. However, it might not be the most competitive choice for individuals under 45.
Costco's partnership with Manulife ensures stability and reliability. If you're a Costco member seeking hassle-free life insurance with discounts and you're aged 50 or older, Costco's offering could be ideal. For those under 45, exploring other insurers might yield more cost-effective options.
Pros of Costco life insurance
- Big discounts of up to 10%-30% for Costco members
- Partner company Manulife is an excellent insurer
- No medical exams are required for individuals under 50
- Quick and easy onboarding process
- 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 life insurance
- Limited range of products
- 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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How much does Costco life insurance cost?
Costco life insurance costs are transparent and can be easily calculated using the Membership tables provided within their brochure (see below). In order 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 does Costco life insurance cover?
Costco Canada life insurance covers most causes of death, including terminal illness, natural and accidental death, suicide (after 2 years of continuous cover and excluding pre-existing conditions), and homicide.
Costco life insurance cover is also good if you are looking for family protection, business continuation, or any special needs specific to your situation. Circumstances, where you should consider buying life insurance, can be broken down into the following categories.
Life insurance for family needs include:
- Rent and/or mortgage payments
- Education or extended schooling tuition costs
- Final expenses such as funeral costs
- Survivors’ income
Life insurance for business continuation:
- Funds for a company buy and sell agreements
- Family business continuance
- Collateral Insurance
Life insurance for special needs may include:
- Surviving critical illness
- Maximizing retirement income
- Bequest to charity
We recommend that you compare what other life insurance companies have to offer before zeroing in on Costco Life Insurance. While it may seem like a daunting process, all you need to do is use our comparator below and compare various policies and get free quotes from Canada's best life insurance providers.
Compare the best life insurance companies
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 normal term life insurance plans that cover you for a certain period of time, while the FollowMe™ Life policy is a term life insurance specific to individuals who have recently left an employer-provided life insurance plan.
What is Costco Term Life Insurance Canada?
Costco’s term life insurance at a glance.
| 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 | $250,000 |
| Guaranteed Premium | |||
| Costco Member Discount | 10% on coverage of $200,000 or more |
| |
| Costco Executive Member Discount | Up to 5% | Up to 5% | |
| Medical Exam Requirement | up to the age of 50 | up to age of 50 | if you apply within 60 days of your group life insurance cover ending |
5-year Term Life
Costco 5-year Term Life insurance is a normal temporary life policy that is issued by Manulife. It is great for individuals looking for short-term cover with guaranteed premiums at a low cost, but the cover can also be extended up to the age of 75. It is also possible to convert this policy into a permanent whole life insurance policy before age 75.
Important 5-year Term Life insurance features include:
- Guaranteed rates for 5-year intervals
- Guaranteed renewals without new medical exams
- No medical exam up to the age of 50
- Coverage between $50,000-$750,000
- 10% Costco Member discount on coverage over $200,000
10-year Term Life
Costco 10-year Term Life insurance is a temporary life policy issued by Manulife, that guarantees premiums and coverage for ten years at a time. The 10-year Term Life product offers extended death benefit coverage when compared to the 5-year Term Life plan as well as greater discounts for Costco members.
Perks of the 10-year Costco Term Life insurance include:
- Guaranteed rates for 10 years
- Guaranteed, automatic renewal
- No medical exam up to the age of 50
- No medical exam for ages 51-55 with a death benefit less than $250,000
- Coverage between $50,000-$1,000,000
- 25% Costco Member discount on death benefit of $250,000-$499,000
- 30% Costco Member discount on coverage >$500,000
FollowMe™ Life
Costco FollowMe™ Life insurance is a special term life insurance policy dedicated to individuals who have recently lost their life insurance coverage which they held through employment. If a Canadian resident and Costco Member apply for the FollowMe™ Life policy within 60 days of losing their work-supplied insurance, they will be guaranteed acceptance without having to complete a medical exam.
It should be noted that FollowMe™ Life’s premiums are not guaranteed. Instead, premiums increase every year as a policyholder’s age increases.
FollowMe™ Life is available to those aged 18-69 and comes with the following features.
- Guaranteed cover until age 80
- Cover between $25,000-$250,000, but cannot be greater than the coverage the individual had through employment
- No medical exam
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.
