Costco Life Insurance Review

Costco life insurance review (2025 update)

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

Costco’s insurance product offerings are limited, with three term life insurance options to choose from: 5 years, 10 years, and 20 years. It also sells a “FollowMe” term product geared toward people losing their workplace benefits through job loss or retirement.

Costco life insurance review

^{* This figure reflects the typical costs for a non-smoking woman between the ages of 34 across a term length of 10-20 years for $500,000 of coverage.}

Costco’s life insurance, underwritten by Manulife, offers affordable coverage and strong financial backing. It’s a safe choice for members who value brand trust and simple term policies. 

That said, the product options are limited to 5, 10, and 20-year terms (a shorter period of time than 30- and 40-year options offered by competitors). The brand’s low customer service rating reflects slower response times. While it offers affordability and brand safety, Costco’s features are somewhat limited compared to modern, digital-first providers. 

Here’s how it all breaks down:

• App to manage your policy: You can use the Manulife app to manage your policy, but there’s no dedicated app for Costco policyholders.
• Discounts for members: You have to be a Costco member to buy a policy, but you can get 10% or 15% off premiums depending on your membership level.
• Level premiums for the duration of the term
• No medical exam for eligible applicants under 50
• 10% off premiums for Costco members (15% for Executive members)
• Accidental death benefit included with your coverage

Overall, you’re getting Manulife life insurance under the Costco banner — and reviews of Manulife’s life insurance are mixed, with most concerns related to customer service. Costco’s strong reputation adds trust, but customer satisfaction tends to be below average.

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Costco is best for:

Short- or medium-term coverage if you value convenience over flexibility

Costco life insurance: pros & cons

Costco life insurance gives members easy access to discounted term coverage through Manulife, though it may lack the flexibility and features of other top insurance companies. Here’s a rundown of the benefits and drawbacks:

Pros

Cons

Costco life insurance cost and value

We compared the costs of Costco’s 5-, 10-, and 20-year term life products across different ages and smoking statuses. These sample monthly life insurance premiums are based on an Ontario resident with $500,000 in coverage:

^{* These figures reflect the average monthly cost for $500,000 of coverage for healthy, non-smoking individuals across a term length of 5-20 years who are Executive members of Costco.}

Costco life insurance reviews and customer service

Costco’s customer service reviews fall fairly low:

• Trustpilot: 1.7/5
• Yelp: 3.3/5

Costco benefits from Manulife’s financial strength in terms of industry reputation and familiarity, and it offers member discounts on life insurance products. However, its customer service falls behind that of its competitors, especially in terms of responsiveness and ease of claims handling — something that should be easy for your loved ones.

Costco life insurance products at a glance

Costco members can choose 5, 10, or 20-year renewable term policies, with coverage up to $2 million (depending on the policy) for your beneficiaries. These types of life insurance provide affordable protection and exclusive discounts on insurance needs for Costco members. Read more on Costco life insurance plans below:

Costco life insurance riders

• Accidental Death & Dismemberment: Covers accidental losses other than paralysis, including up to $10,000 for home alteration and vehicle modification.
• Waiver of Premium: You don’t have to pay the life insurance premium if you become disabled and can’t work — but you keep the coverage. It’s financial protection similar to disability insurance.
• Living Benefit: Get a cash advance on your coverage if you are diagnosed with a terminal illness and have less than 12 months to live.
• Income Protection Disability Rider: Receive a percentage of your monthly income if you become disabled and cannot work.

It doesn’t appear that you can get a child rider on Costco life insurance policies, but make sure to ask your representative about add-on riders and hidden exclusions when getting a quote.

How Costco compares to other providers

If you’re shopping for insurance, it’s important to compare rates and features from multiple life insurance companies to ensure you’re getting the best fit for you. Here’s a rundown of how Costco stacks up against some top providers: 

Costco life insurance vs. PolicyMe life insurance

In terms of cost, customer service, and reputation, Costco’s life insurance has some advantages—but for most Canadians, PolicyMe tends to be the better option. 

Here’s a closer look.

Cost

Costco members can access discounted life insurance (up to 15% off) through Manulife, but you must pay the Costco membership fee to access the best rates. PolicyMe’s rates hover around the same range, but PolicyMe offers a wide range of digital services and excellent value for the money.

Customer Satisfaction

Costco earns a lower score for customer service, which is likely attributable to the process feeling less than transparent. Since Manulife handles applications and policy/claims management, things tend to move a little slower.

PolicyMe, on the other hand, was designed to be quick and straightforward, offering instant quotes, fast approvals, and responsive support — and it has a 4.9-star rating on Google.

Convenience

You can compare quotes and buy policies from both PolicyMe and Costco Life Insurance online. Both policies include a 30-day free-look period with a full refund if you cancel.

However, Costco’s underwriter is Manulife so there can be delays in the application and purchase process with a middle man insurance agent. If you want a policy fast, PolicyMe is your best bet.

The bottom line: Who should consider Costco?

Costco’s life insurance can be a good fit for members who want a quick, no-frills option from a brand they trust. If you’re a Costco member looking for a modest discount or you value Manulife’s reputation in the industry, a Costco life policy might be a convenient and safe choice for you (with a member advantage).

With that said, Costco’s policies are limited to terms of 5, 10, or 20 years. You can expect premium increases as you age, even if you go for the conversion option to get permanent coverage. The lower customer service rating also means you may face slower response times or less personalized support compared to other providers.

If you’re looking for affordable life insurance, PolicyMe offers some of the lowest rates in Canada, has an average rating of 4.9/5 on Google Reviews, and provides $10B in coverage across Canada.

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