In this article:

• Company Overview
• Pros and Cons
• Costco Term Life Insurance Policy
• How It Compares to Other Term Life Policies
• Why Costco Life Insurance May Not Be Your Best Option
• Costco Life Insurance Customer Reviews
• Frequently Asked Questions

Company Overview

Costco is a membership-based retailer known for offering savings on fuel, groceries, travel, and insurance. In Canada, Costco promotes a life insurance product underwritten by Manulife, one of the country’s largest insurers. However, this coverage is available only through a specific group brokerage channel and not sold directly by Manulife or through licensed independent brokers like Protect Your Wealth.

This arrangement limits the policy options, customization, and advisor support available to you. If you’re considering personalized Manulife life insurance, we strongly recommend working with an independent broker who can provide direct access to Manulife and multiple other top-rated Canadian insurers.

Here is a quick overview of the life insurance solution offered to Canadian Costco members:

Pros and Cons

✅ Costco Life Insurance Pros

• The policy offers a low-barrier way to get very basic term life coverage, primarily for healthy applicants with limited insurance needs.
• Available exclusively to Costco members, which may provide marginal savings if you’re already an Executive member. These savings only apply at certain coverage levels.
• Includes a standard 30-day free look period. This allows new policyholders to cancel if they change their mind early.

❌ Costco Life Insurance Cons

• Only one policy structure is available, offering very limited flexibility in coverage amount, term length, or premium design.
• The maximum coverage amount is capped far below what many Canadian families actually need for full protection or income replacement.
• There is no ability to convert to permanent life insurance. Whole life or universal life options are not available through this route.
• Renewals stop at age 75. There is no option for lifetime coverage or premium stability beyond that age.
• No personalized advice or guidance is included. Applicants choose coverage and beneficiaries without help from a licensed advisor.
• The policy is not a good fit for Canadians with health concerns. Approval is not guaranteed and there are no alternate coverage routes.

Costco Term Life Insurance Policy

Term life insurance provides coverage for a specific period, usually 10 or 5 years at a time. It is one of the most affordable forms of life insurance in Canada and is ideal for families or individuals who want simple, temporary protection during their working years.

Costco Canada offers a branded life insurance policy that is underwritten by Manulife, but access is only available through an exclusive broker arrangement. This product is designed to offer simplified term coverage to Costco members with basic needs and strong health.

Manulife Term Life Insurance for Costco Members

• Coverage amount: From $50,000 to $1,000,000, available in $25,000 increments
• Term options: 5-year and 10-year level terms, renewable to age 75 or 80 depending on plan
• Eligibility: Canadian residents aged 18 to 64, depending on term length
• Underwriting: No medical exam required for healthy applicants seeking lower coverage. Full medical review may be required for higher amounts or older ages.
• Discounts: 10% off for all Costco members with at least $200,000 of coverage. Executive members receive an additional 5% discount.
• Policy flexibility: Coverage cannot be converted to permanent life insurance and must be renewed at sharply higher premiums once the term ends.

How It Compares to Other Term Life Policies

Before choosing the Costco, Manulife plan, compare it to individual policies offered by Manulife, RBC Insurance, and Canada Life. Each carrier sets its own rules on coverage limits, renewals, and conversion options, and these differences can have a major impact on long-term protection.

Coverage and Flexibility: Costco caps coverage at $1 million. By working with a licensed advisor, you can apply for up to $10 million with Manulife or Canada Life, and you can tailor the term to match your mortgage or income-replacement window.

Renewal and Conversion: The Costco policy renews every five or ten years and stops at age 75 or 80, depending on term length. Direct-to-consumer plans from Manulife and RBC let you renew to age 85 and convert to permanent life insurance, which keeps coverage in force for life.

Underwriting and Cost: Costco uses simplified underwriting for low coverage amounts. Healthy applicants often qualify, but anyone with even mild health issues can face higher premiums or a decline. An advisor can shop multiple carriers and find a fully underwritten policy that may cost less for the same coverage. Nearly half of Canadians who compare at least three quotes save money, according to CLHIA research.

Advisor Support: Costco does not provide one-on-one advice. A broker like Protect Your Wealth explains riders, beneficiary choices, and tax considerations, and helps clients adjust coverage over time.

In short, the Costco plan can work for a young, healthy member who wants a small, short-term benefit. For anyone who needs higher limits, long-term stability, or expert guidance, applying through an advisor for a direct Manulife or Canada Life policy is often the better choice.

Why Costco Life Insurance May Not Be Your Best Option

At first glance, the Costco life insurance offer looks convenient. You can add a term policy to your cart while buying groceries. Yet convenience alone should not drive a life-changing financial decision.

Coverage limits are restrictive. The plan tops out at $1 million, an amount that may not cover a mortgage, student debt, and family income replacement for many Canadians. Clients who apply through a broker can secure up to $10 million with carriers like Manulife or Canada Life.

No conversion path exists. The Costco plan cannot be turned into whole life or universal life coverage. If you develop health issues later, you must re-qualify at higher prices or risk losing coverage entirely.

Premiums jump after each term. Five- or ten-year terms renew at sharply higher rates and stop altogether in your mid-seventies. A direct Manulife policy bought through an advisor can renew to age 85 and convert to lifetime protection.

Advice is limited. Costco does not provide a licensed professional who will explain riders, tax strategies, or beneficiary planning. Working with an independent broker like Protect Your Wealth gives you access to personalized guidance and multiple carrier quotes.

Overall value falls short. For most families, a fully underwritten policy bought through a broker delivers better pricing, higher limits, and lifelong flexibility. Compare at least three quotes before settling on any single provider.

Costco Life Insurance Customer Reviews

Feedback from Canadians who purchased the Costco–Manulife term life policy highlights a few conveniences, but many members report frustration when they compare it with fully customizable policies bought through an independent broker.

👍 What Customers Like

• The online application is quick and easy to navigate. Most users complete it in under 15 minutes.
• Automatic payment setup is straightforward. Premiums come directly from the member’s credit card on file.
• Some members note that initial premiums look affordable, but they also report that renewal increases reduce any early savings.

👎 Common Complaints

• Coverage is too limited. Families needing more than $1 million find the plan inadequate.
• Members with health considerations, such as high blood pressure or elevated BMI, report higher premiums or outright declines.
• No conversion path. Customers cannot switch to permanent life insurance when their term expires, even if health has worsened.
• Claim wait times can be lengthy. Several reviewers mention delays in receiving payments compared to direct Manulife claims handled by a broker.
• Information on exclusions and renewal pricing is hard to find on Costco’s website, leading to surprises when premiums rise.

FAQ – Frequently Asked Questions

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.