Costco Life Insurance Review Canada: Read Before Applying!

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In This Article

Key takeaways:

  • Costco members get a discount on Costco life insurance based on their membership level.
  • To get life insurance coverage with Costco, you'll need to do a medical history phone interview.
  • Prices go up in year six, and there isn't info online on what the rate increase is.

Our rating for Costco life insurance: ★★★☆☆ (3.5)

Who is Costco?

Costco is a well-known retail chain that also offers a variety of financial and insurance products, including life insurance. Costco Canada's life insurance is provided by Manulife, one of the largest banks in the country.

Their products are super limited though, they only offer a five-year term and a 10-year term policy. We only suggest Costco for Costco members looking for a short-term policy otherwise, it's not worth it.

Costco Wholesale Canada quick facts

  • Costco Wholesale was founded in 1983 in the U.S.
  • Headquarters: Issaquah, Washington
  • AM Best Rating: A+
  • Assets: 66.75 billion

Costco Life Insurance rates

  • 5-Year Policy: Starts at $10.54 for first five years but goes up by term renewal.
  • 10-Year Policy: Starts at $11.90 but goes up by term renewal.

Costco Life Insurance pros and cons

Costco Life Insurance Pros

  • Costco Gold Star or Business memberships get a deal in the first five years of their policy.
  • Costco offers a 30-day free-look period, so you can test out your policy before making a commitment.
  • Costco Executive Members qualify for extra discounts, up to 30% off.
  • Offers term life insurance policies with coverage form $50,000 to $1 million.
  • Policies are underwritten by Protective Life Insurance Company, which has an A+ rating from A.M. Best and a strong reputation in the industry.
  • Customers can get a quote online.

Costco Life Insurance Cons

  • Limited information available about the specific policy details and features without speaking with a representative.
  • To apply, you must go through a 20-minute medical history phone interview with a Protective Life representative.
  • Only offers term lengths of 5 or 10 years.
  • Term policies are renewable but the monthly premiums costs go up (no one likes that).
  • Coverage options may not be as customizable or flexible as other providers in the market.
  • Some applicants may be required to undergo a medical exam, which can be a barrier for those with pre-existing medical conditions or concerns.

Costco Life Insurance customer reviews

Positive Costco Life insurance reviews

"Our agent is very thorough in explaining the coverages with us. He's professional, always returns calls promptly if we have questions. The coverage was by far the most economical when I shopped around for coverages. They offer an extensive list of types of insurance that can be truly geared to our specific needs." - Customer on Better Business Bureau.

Negative Costco Life insurance reviews

"My dad passed 2 months ago. We called in to make the claim and were told 19 business days for policy funds to be deposited. Nothing was deposited after that time, so we called back twice and were told a rush would be put on it. Still nothing. Called the broker and he talked with them. They told him it would be 5-7 business days. Still nothing. It's now 2 months" - Customer on InsurEye.

Costco Life Insurance products

1. Term Life Insurance

  • Coverage Amount: $50,000-$1,000,000 million.
  • Term Lengths: 5 or 10 years.
  • Policy renews automatically until the age of 75 (or 80 for a 10 year term policy).
  • Applicants under the age of 50 do not need to take a medical exam.
  • Those looking for a no-medical policy can get up to $250,000 in coverage.
  • Renewable, premiums increase annually after the term period, which is standard.
  • Premiums are guaranteed for five years, then increase in policy year six, and then stay the same for the rest of the term period.

What's the bottom line on Costco Life Insurance?

Costco life insurance essentially offers a renewable term insurance policy. They offer either a five-year or a 10-year coverage which autmotically renews but the costs of the policy goes up as you age. Although their products are limited, the biggest benefit to their policy is that Costco members get up to 10% on premiums at $200,000+.

But otherwise, you're better off getting a cheaper policy that stays the same price throughout your entire policy!

FAQ: Costco Life Insurance review

What types of life insurance policies does Costco offer?

Costco offers one type of life insurance policy: Term Life Insurance. Term life insurance provides coverage for a set period, such as 5 or 10 years.

How much life insurance coverage can I get from Costco?

The amount of coverage you can get from Costco varies based on the type of policy you choose. For Term Life Insurance, coverage ranges from $50,000 to $1 million.

What are the eligibility criteria for Costco Life Insurance?

The eligibility criteria for Costco Life Insurance vary based on the policy you choose. Some applicants may be required to undergo a medical exam, while others may not. It is important to accurately disclose any medical conditions during the application process to ensure that you receive the proper coverage.

How do I apply for Costco Life Insurance and what documents do I need to provide?

You can apply for Costco Life Insurance online by completing an application and providing basic personal and financial information. Depending on the policy you choose, you may be required to provide additional documentation, such as medical records or proof of income. Once your application is submitted, you will receive a quote and can choose to accept or decline coverage.

Here are more reviews of Canadian life insurance companies:

Laura McKay

COO & Co-Founder
About the Author

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