Costco Life Insurance Review for Canadians
Discover the benefits and drawbacks of Costco Life Insurance in Canada
5 minute read
Originally published: November 11, 2024
Costco Life Insurance Review for Canadians
Discover the benefits and drawbacks of Costco Life Insurance in Canada
5 minute read
Originally published: November 11, 2024
If you are a Costco member in Canada, you may be eligible to sign up for a life insurance policy. That’s right, Costco offers life insurance to its members at a discounted price. However, compared to other life insurance providers in Canada, Costco life insurance may not provide the best value for what you pay and is far less flexible than other insurance policies on the market. Because of this, after a thorough review of Costco life insurance we could only rate it 1 out of 5 stars. Continue reading to better understand the life insurance offered through Costco, the costs and coverage amounts, and the benefits and drawbacks of a Costco life insurance policy.
In this article:
Company Overview
Costco is a chain of big-box warehouse retail stores headquartered in America that offers memberships that allow members to shop in their stores. In addition, members can enjoy other benefits such as discounts on groceries and gas, savings on travel and auto costs, and even insurance solutions. The life insurance policy Costco members can benefit from is offered through another American company known as Protective Life, based in Alabama.
Here is a quick overview of the life insurance solutions Costco members can benefit from:
Costco Life Insurance Pros
- The policy is an affordable way to get very basic coverage.
- Exclusive only to Costco members, meaning you can gain more value from an existing membership.
- Policyholders get a 30-day free look period and can cancel the policy if they change their mind within that time-frame.
Costco Life Insurance Cons
Little flexibility on coverage amount, term length, and policy cost since only one policy is available.
Maximum coverage amount is low compared to other available policies on the market.
No option to convert to a permanent life insurance policy or renew the policy past age 75.
Not available for members with significant health complications.
Costco Term Life Insurance Policy
Term life insurance offers coverage for a specified period of time, typically ranging from 10-30 years. This type of coverage is the most affordable and is ideal for those with changing financial needs and those interested in straightforward coverage.
Costco offers one term life insurance policy to members using the provider Protective Life. Here is a quick overview of the plan:
ReMember Life Insurance
Coverage amount: $100,000 – $5,000,000
Length of coverage: 10, 20, or 30 Years
Issue ages: 18 – 60 years old.
Additional options:
- Applicants must undergo a 20+ minute phone interview to provide information about their health and medical history.
- Without full medical underwriting, including a medical exam, applicants aged 18 – 45 can only receive up to $1,000,000 in coverage and applicants aged 46 – 60 can only receive up to $500,000 in coverage.
- Policyholders can cancel their policy at any time.
- The premium cost will increase in policy year six, then remain level for the remaining level period (5, 15 or 25 more years) and after the full level period (10, 20 or 30 years) the premiums will increase annually immediately following the full level period.
Costco Life Insurance Customer Reviews
Customers who purchased Costco life insurance through Protective Life typically have the following to say:
- The online application process is easy to navigate and convenient.
- It’s easy to set up online payments.
It’s an affordable way to get basic coverage if you’re young.
This is not a great solution for seniors or anyone with health concerns.
There can be lengthy wait times for life insurance insurance claims.
It’s hard to find information online about the policy.
Other insurance providers offer more options such as life insurance riders or the option to convert a term policy to a permanent policy.
Frequently Asked Questions (FAQs) About Costco Life Insurance
Costco currently only offers one term life insurance policy to members through Protective Life. There are no options for permanent life insurance or simplified issue life insurance policies.
There is no one size fits all type of insurance and different providers will specialize in different types of insurance and policy offerings. However, Costco life insurance offers very limited policy options and can be restrictive to policyholders as their insurance needs change over time. Even if you only need basic coverage now, waiting to find more comprehensive coverage as an older adult can be much more expensive.
For these reasons, it’s likely better for interested applicants to shop around and find a provider that offers a variety of life insurance policies, riders, and other insurance solutions that will benefit them long term.
Find the Right Insurance Provider for You and Your Family.
If you want a better idea of what life insurance options are available for you and your family, consider working with a life insurance expert. At Protect Your Wealth, we compare policies and quotes from the best life insurance companies in Canada to help clients find the right policy for their unique needs, at no cost to them! We provide expert life insurance solutions and are committed to helping clients understand their options and find the best policy.
Contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Alberta, and Manitoba including areas such as Oshawa, Vancouver, Grande Prairie, and Winkler.
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