{"id":2029,"title":"A Guide to Costco Life Insurance Plans in 2026","slug":"costco-life-insurance-in-canada-a-complete-guide-to-coverage-costs-and-policy-options","lang":"en","description":"This guide explains how Costco-related life insurance programs generally work, the types of policies that may be available, and important factors to review before choosing coverage. It is intended for general informational purposes only and does not constitute financial, insurance, or legal advice.","content":"

Understanding Costco Life Insurance Plans

Costco generally does not underwrite or issue life insurance policies itself. Instead, eligible members may have access to life insurance products offered through participating third-party insurance providers.

The participating insurer—not Costco—is generally responsible for:

Policy administration
Underwriting
Premium calculations
Claims handling
Coverage terms
Customer support
Eligibility requirements

Provider relationships, available products, and member programs may change over time, so members should review the most current information before purchasing coverage.

How Costco-Related Life Insurance Programs Work

Costco-related life insurance programs generally follow a process similar to many other life insurance offerings.

Typical steps include:

Confirm eligibility for the member program (where applicable).
Request a quote from the participating insurer.
Complete an application.
Provide requested personal and health information, if required.
Review available policy options.
Accept coverage if approved by the insurer.

Application requirements vary depending on the insurer, policy type, coverage amount, age, and applicable underwriting guidelines.

Common Types of Life Insurance Members May Compare

Although available products vary by insurer and location, members commonly compare several types of life insurance.

Term Life Insurance

Term life insurance generally provides coverage for a specified period, such as:

10 years
15 years
20 years
30 years

If the insured person dies during the covered term, the policy may provide a death benefit to eligible beneficiaries, subject to the policy's terms and conditions.

Term insurance is often selected by individuals seeking temporary financial protection.

Permanent Life Insurance

Some insurers also offer permanent life insurance products that may remain in force as long as policy requirements continue to be met.

Depending on the policy, permanent insurance may include features such as:

Lifelong coverage
Cash value accumulation
Flexible premium structures

Availability varies by insurer and jurisdiction.

Final Expense or Simplified Issue Products

Depending on the participating insurer and local market, some insurers may also offer products designed to help cover final expenses or simplified application options.

Product availability, underwriting requirements, and policy features vary by insurer.

Factors That May Influence Premiums

Life insurance premiums are generally determined by the insurer based on numerous factors rather than membership alone.

Common underwriting factors may include:

Applicant age
Health history
Tobacco use
Coverage amount
Policy type
Policy duration
Occupation
Lifestyle considerations
Applicable underwriting guidelines

Each insurer uses its own underwriting process, so premiums may differ between providers.

Information Adults Commonly Review by Age Group

Some informational guides organize life insurance topics by age group to help readers compare common planning considerations. These age ranges are not eligibility categories, guaranteed pricing tiers, or coverage recommendations.

Age Group	Topics Commonly Reviewed
50–59	Coverage amount, policy duration, beneficiary planning, premium budgeting
60–69	Available policy types, underwriting requirements, renewal provisions, conversion options where applicable
70–79	Policy availability, premium considerations, beneficiary updates, reviewing existing coverage
80–89	Current insurer offerings, application requirements, policy limitations, continuation of existing policies
90+	Existing policy management, beneficiary review, estate planning discussions, insurer-specific provisions

Age is only one factor considered by insurers. Coverage availability depends on the insurer's underwriting rules and individual circumstances.

Understanding Underwriting

Many life insurance policies involve an underwriting process.

Depending on the insurer and policy selected, underwriting may include:

Application review
Health questionnaire
Prescription history review
Medical records review (where applicable)
Additional documentation if requested

Some insurers may offer accelerated or simplified application processes for certain products, while others may require more detailed underwriting.

Requirements vary by insurer and policy.

Policy Features Members May Compare

When reviewing Costco-related life insurance options, members often compare more than premium costs.

Common comparison points include:

Policy type
Coverage amount
Premium structure
Term length
Renewal provisions
Conversion options (if available)
Beneficiary flexibility
Policy exclusions
Waiting periods (where applicable)
Customer service resources

Reviewing these features together can help provide a broader understanding of available options.

Questions to Ask Before Purchasing

Before selecting a policy, members may wish to ask:

Which insurer provides the policy?
What type of life insurance is available?
How long does coverage remain in effect?
Are premiums fixed or subject to change?
What underwriting process applies?
Are conversion options available?
What exclusions or limitations apply?
How are claims submitted?
Can beneficiaries be updated later?

Reviewing these questions before purchasing may help consumers compare policies more effectively.

Frequently Asked Questions

Does Costco sell life insurance directly?

Generally, no. Costco typically provides access to life insurance through participating third-party insurance providers rather than issuing policies directly.

Are Costco members guaranteed lower premiums?

No. Premiums depend on the participating insurer's underwriting guidelines and individual circumstances. Membership alone does not guarantee lower pricing.

Can members compare multiple policy types?

Depending on the participating insurer and location, members may be able to compare different life insurance products, such as term or permanent life insurance.

Is a medical review always required?

Requirements vary. Some policies involve traditional underwriting, while others may use alternative application processes, depending on the insurer and product.

Can policy availability differ by location?

Yes. Available products, eligibility requirements, and policy features may vary by country, province, or state.

Tips for Comparing Life Insurance Plans

When evaluating Costco-related life insurance programs, consumers may wish to compare:

Coverage amount
Premium affordability
Policy duration
Financial strength of the insurer
Customer service resources
Claims process
Available riders
Underwriting requirements
Policy flexibility
Long-term coverage needs

Comparing several insurers and policy features may provide a more complete understanding before making a decision.

Conclusion

Costco-related life insurance programs may provide members with access to life insurance products offered by participating insurers. Because Costco generally does not underwrite or administer these policies, it is important to review the insurer's policy documents, underwriting requirements, coverage terms, exclusions, and premium structure carefully.

Rather than focusing only on price, comparing policy features, coverage options, and insurer information can help consumers make more informed decisions based on their individual circumstances.

Disclaimer

This article is provided for general informational purposes only and should not be interpreted as financial, legal, tax, or insurance advice. Costco generally does not issue or underwrite life insurance policies directly. Life insurance products discussed in connection with Costco are typically offered by participating third-party insurers. Coverage availability, policy terms, underwriting requirements, premiums, exclusions, eligibility, and program details vary by insurer, location, and individual circumstances. Readers should review current policy documents and verify information directly with Costco and the participating insurance provider before making insurance decisions.

References

Costco Member Services – Insurance Programs
Manulife (Canada) – Life Insurance Information
Protective Life Insurance Company
Canadian Life and Health Insurance Association (CLHIA)
National Association of Insurance Commissioners (NAIC)
Insurance Information Institute (Triple-I)

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