Costco Life Insurance for Members: What You Need to Know

Costco membership programs sometimes include access to life coverage that is marketed by licensed insurers or brokers rather than by the retailer itself. In practice, this means your policy—if you choose to buy—will be underwritten by a regulated Canadian insurer, with Costco’s role focused on marketing and member experience. Availability, features, and any member-specific perks can vary by province and over time, so always verify current details through official member channels or with a licensed advisor in your area.

How does Costco’s life insurance program work?

The key to understanding Costco’s life insurance program is recognizing that these offerings are typically arranged through third-party partners. You complete a needs assessment, receive a quote, and—if you proceed—apply for coverage that a licensed insurer underwrites. The contract is between you and the insurer, and provincial regulations govern suitability, disclosure, and claims. Member-facing programs may emphasize streamlined online quoting, simplified application steps, and access to customer support, while the insurer handles risk assessment, policy issuance, and claims.

What types of coverage are available?

Most membership-linked programs highlight term coverage because it’s straightforward and cost-effective for many families. Term 10, Term 20, and Term 30 are common options, each providing a guaranteed level premium for the chosen term and a tax-free benefit if the insured dies during that period. Whole life and universal life—permanent policies that include lifelong protection and potential cash value—may also be available through insurers you can compare independently. If you need flexibility, look for renewable and convertible features, child riders, or options to add critical illness or disability riders from insurers offering these add-ons in Canada.

Member benefits and trade-offs

Potential benefits of choosing a member-arranged path can include convenient online tools, simplified qualification paths for healthy applicants, and occasional member-only discounts or promotional perks. However, trade-offs may include a narrower set of policy designs or underwriting classes than you’d find by surveying the broader market. Because your needs are unique, compare coverage amounts, renewability rules, conversion windows, and available riders with multiple Canadian insurers. Consider how premiums may change at renewal, whether permanent conversion is allowed, and how easily you can adjust coverage if your family, mortgage, or small business needs evolve.

How to get started

Begin with a clear estimate of your protection gap: add living expenses, debts, and future goals like education funding, then subtract liquid assets and existing coverage from work. Many calculators suggest covering 7–10 times annual income, but tailor this to your situation. Gather basic information—age, smoking status, health history, and desired term length. Request quotes from the member-accessible program and at least two or three well-known insurers or local services in your area. Review policy summaries carefully, paying attention to exclusions, medical evidence requirements, and any paramedical exams. If you have medical complexities or need layered strategies (for example, combining Term 20 for a mortgage with Term 10 for short-term needs), a licensed advisor can help you compare structures.

Cost estimation and provider comparison: what to expect

Premiums depend on age, health, smoking status, coverage amount, and term length. In general, younger non-smokers pay the lowest premiums; longer terms cost more than shorter terms; and medical conditions can raise rates or require additional underwriting. For a healthy 35-year-old non-smoker in Canada, a $500,000 Term 20 policy often falls in the ballpark of a few dozen dollars per month, while Term 10 may be lower and Term 30 higher. Permanent coverage typically costs more but offers lifelong protection and potential cash value. Use a consistent profile when comparing quotes to keep the analysis apples-to-apples.

Below is an illustrative snapshot comparing common term offerings from well-known Canadian insurers. It is not exhaustive, and actual premiums vary by profile and province.

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

These price bands illustrate the main drivers of cost: term length, coverage amount, age, and health class. If a membership program provides a preferred rate or administrative convenience, treat it as one quote in a broader comparison that also includes independent options and advice.

Putting it all together

For many Canadian families, term coverage provides a clear, budget-conscious way to protect income and debts during key years. A membership-based route can add convenience, but it remains essential to confirm who the underwriter is, review contract provisions, and benchmark premiums side by side with well-known Canadian insurers. Align the term to your timeline, choose an amount that matches real obligations, and confirm flexibility to renew, convert, or add riders as your needs change. With a consistent comparison framework and attention to the fine print, you can make a confident, well-documented decision that fits your household priorities.