Costco Term Life Insurance Policy

Considering Costco? Photo by Ben W

Costco members between the ages of 18 and 70 can apply for term life insurance for themselves or their spouses for up to $500,000. The policies are priced in $25,000 increments and the minimum face amount is $50,000.

Additional policy features.

1. The insured can get up to $100,000 if they are diagnosed with a terminal illness. (The policy must be in effect for at least two years for this feature to kick-in)

2. Discounts are given to non-smokers, but preferred rates are not available.

3. There is a conversion option under the policy. The insured can convert to a permanent plan without a medical any time before the insured's 76th birthday.

4. The premiums are fixed for the first five policy years.

However, the premiums for the policy do not compare favourably with other insurance carriers – see examples below at $250,000:

A 40-year-old, male non-smoker can get Costco's 5-year term is $37.30/ month. Canada Life offers Term 10 at $20.93 a month.

A 40-year-old, female non-smoker can get Costco's 5-year term is $32.70/ month. Canada Life offers Term 10 at $16.88 a month

A 40-year-old, male smoker can get Costco's 5-year term at $70.60/month. RBC Insurance  offers Term 10 at $42.48 a month

A 40-year-old, female smoker can get Costco's 5-year term plan at $57.90/month. BMO Insurance offers $32.63 a month

For more details on how Costco's Term Life insurance policy compares with other term life policies in Canada, please contact us at: 1-866-899-4849, or visit our Instant Quote Term Life Insurance Page.

Posted by Chantal Marr.