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. Costco Canada's 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.

Costco life insurance: Our verdict ★★★☆☆ (2.9/5)

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, and the brand’s low customer service rating reflects slower response times.

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Costco life insurance: key features

Costco life insurance is designed to provide Costco members with simple, discounted life insurance through Manulife. While it offers affordability and brand safety, its features are somewhat limited compared to modern, digital-first providers. Here’s how it all breaks down:

• Access to the Manulife app to manage your policy (but no dedicated app for Costco policyholders)
• 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

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.

The bottom line: Costco’s life insurance is best seen as a convenient, membership-based option for short- or medium-term coverage. It’s not a standout choice for those seeking flexible life insurance options.

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- and 10-year term life products across different ages and smoking statuses. These sample monthly life insurance premiums are based on an Ontario resident with $250,000 in coverage:

Costco life insurance reviews and customer service

Costco’s customer service reviews fall fairly low:

• Trustpilot: 1.7/5
• Insureye: 2.9/5

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.

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). These plans provide affordable protection and exclusive discounts for Costco members. Read more on Costco life insurance products below:

How Costco compares to other insurers

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 its 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 preferred 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 experience

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.

Industry reputation

Costco benefits from its trusted brand and its partnership with Manulife, which gives it a solid reputation score of 4.4. While PolicyMe may be newer, it has built a strong reputation for innovation and customer-first design, backed by established Canadian insurers.

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, Costco’s coverage might be a convenient and safe choice for you.

With that said, Costco’s policies are limited to terms of 5, 10, or 20 years and don’t include the option to convert to 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 and has an average rating of 4.9/5 on Google Reviews. 

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