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Costco Life Insurance Review

by Mark Cluett
9 min read

Our Take: Not Recommended For Canadian Life Insurance Buyers

Costco Life Insurance Review

Costco Insurance

AM Best
financial strength rating Rating

Our Take: Not Recommended For Canadian Life Insurance Buyers

Costco Life Insurance Review

Costco Insurance

AM Best
financial strength rating Rating

Costco Term Life Insurance Review

Though Costco is a great place to shop for groceries and other consumer goods, it is not the best place to shop for a life insurance policy. Costco members have grown to expect sizable discounts on their purchases, and this is applicable to insurance too. Though there are avenues for savings by going with a Costco policy, there are better options available elsewhere, which offer much more customization to suit your needs and budget. 

We would recommend choosing one of the many other insurers in the market at this point in time, given the potential to obtain lower prices and access a wider spectrum of features and optional benefits. Use PolicyAdvisor’s quoting tool to find the right coverage through several competitive quotes from Canada’s best life insurance companies.


  • Savings: Costco members can get a discount of a minimum of 10% on their premiums (as compared to non-members who purchase the same product directly through Manulife)
  • The discount percentage may increase and be as high as 30%, depending on the term and the amount of coverage chosen
  • Executive Members get an additional discount of 5% over and above those mentioned above through the memberships cashback directive
  • Backed by Manulife – trusted name in insurance


  • Lack of choice: There are only two terms offered: 5 and 10 years
  • Though the coverage is  renewable at end of term, premiums increase drastically
  • No options to tailor coverage – restrictions on the amount of coverage one can choose
  • Few additional riders or benefits offered

Who is Costco Insurance?

Costco is an American multinational corporation founded in 1983 (though with a longer corporate history dating back to 1976 when accounting for mergers and acquisitions). Costco operates a chain of warehouse-styled, retail grocery and shopping clubs across 8 different countries. These clubs charge a yearly membership fee to shop at their locations, with perks including high quality in-house brands, extended warranties on products purchased at their locations, wholesale pricing and bulk products, and exclusive deals for their members. 

In Canada, Costco offers are two different individual membership tiers: Gold Star and Gold Star Executive. Costco is the second largest retailer in the world, with over 100 locations across Canada alone.

Costco offers its members a variety of additional amenities apart from physical goods, including insurance and other financial services. In the life and living benefits space, Costco offers life, health and travel insurance, all in partnership with Manulife

Founded in 1867, Manulife is one of Canada’s largest and oldest insurers and a global player in the insurance world with over a trillion dollars in collected assets.

Costco: Quick Facts

  • Founded: 1983
  • Headquarters: Seattle, Washington
  • AM Best Rating: N/A
  • Better Business Bureau Accreditation and Rating: N/A
  • Assets: N/A
  • Annual Premiums: N/A

For insurance facts, please refer to our Manulife Term Life Insurance Review.

Costco offers two types of term life insurance through their partnership with Manulife.

10 Year Term Life Insurance

This is a term life insurance with fixed premiums and a 10-year term, as the name suggests. Once the term ends, coverage renews automatically, at a higher premium which reflects your age at that point in time. This renewability is available until age 80 and can be cancelled at any time.

Coverage is available in amounts of $50,000 to $1,000,000. Those under the age of 50, do not require medical examination to qualify for any amount of coverage. For those between the ages of 50 and 55, no-medical coverage is limited to $250,000.

Benefits Included:

  • Accidental Death Benefit: An additional 25% of the life coverage amount, to a maximum of $250,000, will be paid out in the event of accidental death before age 75.
  • Job Loss Waiver of premium:  If you or your spouse involuntarily lose your job while insured, and are under age 70, you won’t have to pay premiums for up to 9 months while you’re unemployed. 
  • Cash Advance: You will receive a cash advance of up to 50% of your coverage amount, to a maximum of $100,000 if you are diagnosed with a terminal illness and have less than 12 months to live
  • Savings for Costco Members:
    • Costco Members can save 25% on coverage of $250,000 or more, and 30% on coverage $500,000 or more.
    • Executive Members get additional savings of up to 5% over and above this discount.

5 Year Term Life Insurance

This is a term life insurance with fixed premiums and a 5-year term. At the end of the term, the coverage renews automatically, albeit with a higher premium – similar to their 10-year term life option – until the age of 75.

Coverage is available in the range of $50,000 to $750,000. Those under the age of 50 do need to need to undergo medical testing to qualify for any amount of coverage. Those between the ages of 50 and 55 can get up to $250,000 without a medical.

Benefits Included:

  • There is only one benefit included in the 5 Year Term Life Insurance option. Policyholders can qualify for a Cash Advance Benefit if they are diagnosed with a terminal illness and have less than 12 months to live
  • Savings for Costco Members:
    • All Costco Members can save 10% on coverage of $200,000 or more 
    • Executive Members get additional savings of up to 5% over and above the previous discount.
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What term life insurance amounts and coverage does Costco offer?

  • Available Term Lengths: 5-Year and 10-Year
  • Available Term Types: Level guaranteed term
  • Maximum Amount of Coverage: $1 million (the minimum amount is $50,000, with increments of $25,000)
  • Renewability: Renews automatically at the end of the term (5 or 10 years) up to the age of 80
  • Convertibility: Eligible for conversion to permanent life insurance within a certain period

What other insurance coverage does Costco offer?

Costco offers several other insurance options to its members:

  • Health and Dental Insurance: This is also offered through Manulife for many common healthcare expenses not covered by government health plans. The plans cover a variety of out-of-pocket expenses like prescription drugs, home-care and therapists. You can keep the coverage for life, regardless of your health condition, as long as you keep paying premiums.
  • Travel Insurance: This is yet another Manulife product for Costco. There are different options for traveling Canadians, visitors to Canada and students. You can choose from single and multi-trip coverage, trip cancellation and interruption and also emergency medical top-up.
  • Auto and Home Insurance: Costco offers auto and home insurance through an intermediary brokerage, Innova Insurance Brokers. You can access quotes from a variety of companies such as Aviva, Intact and Travelers Insurance.
  • Pet Insurance: Costco has partnered with Pets Plus Us to offer pet insurance to its members. There are two products, one covering only accidents and another which covers both accidents and illness.

Is Costco Insurance right for you?

While Costco Insurance offers name recognition (through both the wholesale club and its partnership with Manulife) and basic life insurance coverage products that are a fit for many Canadian consumers  – there may be better options. As insurance advisors for multiple life insurance companies and products, we can help you decide if Costco’s products are the best fit for you or if another provider can meet your needs.

As Canada’s best online life insurance advisor, we will assist you in comparing and choosing products across all our partner companies. Speak to our licensed advisors and we will be able to assist you in finding you the best coverage for your needs.

The information above is a brief representative summary for indicative purposes only. It does not include all terms, conditions, limitations, exclusions, termination and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details. In case of any discrepancy, the language in the actual policy documents will prevail. A.M. Best financial strength ratings displayed above are not a warranty of a company’s financial strength and ability to meet its obligations to policyholders.

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