{"id":2158,"title":"Costco Life Insurance for Seniors in Canada: A Practical Guide by Age and Coverage Needs","slug":"costco-life-insurance-for-seniors-a-practical-guide-by-age-coverage-needs-and-budget","lang":null,"description":"Explore Costco life insurance for seniors by age group, including coverage needs, eligibility, term options, costs, and key factors to compare.","content":"

Life insurance can still play an important role during retirement, but the purpose of coverage often changes as people get older. A working adult may use life insurance to replace employment income, while a retired person may be more concerned about protecting a spouse, paying debts, covering final expenses, supporting a dependent family member, or providing funds for estate-related costs.

In Canada, Costco lists term life insurance among the services available to its members. The insurance is offered through Manulife and is underwritten by The Manufacturers Life Insurance Company. Costco provides access to the program, but Manulife is responsible for applications, underwriting, policy administration, coverage decisions, and claims.

The attached guide highlights four age groups: 55–64, 65–74, 75–84, and 85 or older. These categories are useful for discussing how insurance needs may change with age. However, they should not be interpreted as confirmation that every Costco life insurance plan is available for new applicants in every age group. Current Manulife eligibility limits vary by product, and some older adults may need to review existing policies or compare alternatives outside the Costco program.

This guide explains how Costco life insurance in Canada generally works, what seniors should examine before applying, and how financial priorities may differ across each age range.

How Costco Life Insurance in Canada Works

Costco’s Canadian life insurance offering is based primarily on term life insurance. Term insurance provides coverage for a specific period. If the insured person dies while the policy is active and the claim meets the policy conditions, the named beneficiary receives the death benefit.

Unlike many permanent life insurance policies, term life insurance does not normally build cash value. The Financial Consumer Agency of Canada explains that term coverage lasts for a set period, such as 10 or 20 years, or until a specified age. Once the term ends, coverage may terminate unless the policy is renewed. Renewal premiums may increase because they are based on the insured person’s older age.

Manulife currently presents several options for Costco members:

Five-year term life insurance
Ten-year term life insurance
Twenty-year term life insurance
FollowMe Life insurance for eligible people whose group coverage is ending

The five-year plan currently offers coverage from $50,000 to $750,000, while the ten-year plan offers amounts from $50,000 to $1 million. The twenty-year plan offers coverage from $50,000 to $2 million. Available amounts, rates, and approval remain subject to the policy terms and underwriting.

Costco Executive Members may receive additional savings under current program terms. However, a membership discount should be considered only one part of the decision. Applicants should also examine the total long-term cost, renewal schedule, expiry age, exclusions, and whether the term matches the actual financial need.

Eligibility and Age Limits Matter

The age categories shown in the image are planning categories, not product eligibility guarantees.

Current published eligibility information indicates that Canadian residents between ages 18 and 65 may apply for the five-year Costco member term plan. Coverage under that plan expires at age 75. The ten-year and twenty-year plans currently accept eligible applicants between ages 18 and 70, subject to membership and other conditions. The ten-year plan expires at age 80, while the twenty-year plan may continue through renewals up to age 90.

This distinction is especially important for older seniors. A person who already owns a renewable policy may be able to maintain coverage beyond the age at which new applications are accepted. That does not mean a person of the same age can purchase a new policy.

Applicants may also be asked about:

Medical history
Current health conditions
Prescription medication
Tobacco or nicotine use
Height and weight
Occupation and lifestyle
Family medical history
Requested coverage amount

Manulife may request medical information, tests, or additional questions when reviewing an application. Simplified approval language should not be interpreted as guaranteed acceptance.

Ages 55–64: Protecting Income and Preparing for Retirement

Adults between 55 and 64 are often approaching retirement but may still have significant financial responsibilities. They may be working full-time, paying a mortgage, helping children, supporting aging relatives, or depending on two household incomes.

Common reasons to consider life insurance at this stage include:

Replacing employment income for a spouse
Paying down a mortgage or home-equity balance
Covering personal or business debts
Supporting children who are still financially dependent
Providing for a family member with a disability
Bridging the period before pension or retirement income begins

People in this age group may still qualify to apply for five-, ten-, or twenty-year Costco life insurance, depending on their exact age and underwriting. A 55-year-old, for example, may have more term options than someone who is 64.

Choosing the longest available term is not automatically the best approach. The policy duration should reflect how long the obligation is expected to continue. Someone planning to retire in seven years with a mortgage ending around the same time may evaluate a shorter term differently from someone whose spouse will depend on income for another 15 years.

Premium affordability should also be tested against a retirement budget. A policy that is manageable while working may become difficult to maintain after employment income ends.

Ages 65–74: Reviewing Retirement-Era Obligations

Between ages 65 and 74, many Canadians are retired or reducing their working hours. Life insurance needs may become smaller, but they do not necessarily disappear.

A surviving spouse could experience a reduction in household income following a death. Pension payments may change, and Canada Pension Plan or Quebec Pension Plan survivor benefits may not replace the deceased person’s full income. Outstanding debts, caregiving responsibilities, and estate costs may also remain.

Possible reasons for coverage include:

Providing temporary income for a surviving spouse
Paying a remaining mortgage
Covering a personal loan or line of credit
Supporting an adult dependent
Providing money for final expenses
Creating liquidity for estate obligations

New-application eligibility becomes more limited during this age range. The current five-year Costco member plan accepts applicants only through age 65. The ten- and twenty-year plans currently allow applications through age 70. Therefore, a person who is 71 or older may not qualify to purchase these plans as a new applicant, even though an existing policy may continue to a later expiry age.

Applicants near an eligibility limit should avoid assuming that a longer term will remain available indefinitely. They should verify the current policy wording and consider how premiums may change at renewal.

Ages 75–84: Existing Coverage and Alternative Options

Adults ages 75 to 84 are generally beyond the current new-application age limits for the main Costco term plans described above. For this group, the most relevant question may be whether an existing policy remains active rather than whether a new Costco policy can be purchased.

A previously issued five-year plan may expire at age 75. An existing ten-year plan may continue to age 80, while a qualifying twenty-year plan may continue through renewals up to age 90. These ages describe continuation limits, not guaranteed new coverage for applicants who have already reached those ages.

People in this age group may wish to review:

Whether an existing policy is renewable
The cost of the next renewal
Whether a conversion option remains available
Current beneficiary designations
The amount of coverage still needed
Whether savings could cover the same obligation
Whether permanent or final-expense insurance is available elsewhere

Term renewal costs may rise substantially at older ages. Continuing a policy can still make sense when there is a clear financial need, but the decision should be based on the expected benefit, remaining obligation, and total future premium.

Consumers comparing simplified-issue or guaranteed-acceptance products should examine them carefully. Such products may have lower coverage limits, higher premiums per dollar of benefit, waiting periods, or graded death benefits during the early policy years.

Ages 85 and Older: Evaluating the Need Before Seeking Coverage

For people age 85 or older, obtaining new individual life insurance is generally more difficult. The main Costco term products do not currently accept new applicants in this age group.

At this stage, the first question should be whether insurance is necessary at all. Some households may already have enough savings, investments, prepaid arrangements, or accessible estate assets to meet expected costs.

Potential alternatives include:

Keeping a designated savings account for final expenses
Reviewing existing permanent life insurance
Confirming beneficiaries on registered and non-registered accounts
Using available estate assets for expected obligations
Discussing trust or estate arrangements with a qualified professional
Reviewing whether family members actually depend on the insured financially

Life insurance should address an identifiable financial risk. It may be less appropriate when premiums would place pressure on retirement income or when sufficient assets are already available.

Comparing Five-, Ten-, and Twenty-Year Coverage

The Costco-associated term plans differ in more than their duration.

The five-year option has guaranteed rates for each five-year term and currently expires at age 75. The ten-year plan has rates guaranteed for ten years at a time and expires at age 80. The twenty-year plan provides rates guaranteed for each twenty-year term and may continue to age 90.

A shorter term may begin with a lower premium, but it also reaches renewal sooner. A longer term may cost more initially but can provide more predictable pricing for a longer period.

When comparing plans, seniors should consider:

Current monthly or annual premium
Future renewal premiums
Final coverage expiry age
Coverage amount
Conversion rights
Medical underwriting requirements
Living benefits
Exclusions and limitations
Whether the need is temporary or lifelong

The lowest initial premium is not always the lowest overall cost.

How Much Life Insurance May Be Needed?

There is no universal coverage amount for seniors. A needs-based calculation can provide a more realistic estimate than choosing a benefit based only on the maximum available amount.

Start by estimating:

Mortgage and other debts
Income required by a surviving spouse
Funeral and estate-administration costs
Support for dependent family members
Business or tax-related obligations
Other planned financial commitments

Then subtract:

Savings available for these expenses
Existing life insurance
Survivor pension or government benefits
Accessible investments
Other reliable household resources

The remaining gap may provide a starting point for evaluating coverage.

The Government of Canada notes that life insurance proceeds may help replace income, support dependants, pay funeral expenses, settle debts, or provide a charitable gift. Beneficiaries generally receive a one-time payment, subject to the policy terms.

Beneficiaries and Policy Maintenance

A policyholder may name one or more beneficiaries. It is also useful to name a contingent beneficiary in case the primary beneficiary dies first.

The Financial Consumer Agency of Canada recommends reviewing beneficiary designations periodically. If a beneficiary is irrevocable, their written permission may be needed before changes can be made. In Quebec, naming a spouse as beneficiary is generally presumed irrevocable unless the designation states otherwise.

Policyholders should also:

Pay premiums on time
Keep contact information current
Store policy documents safely
Tell beneficiaries that the policy exists
Review coverage after major life changes
Read renewal and cancellation terms carefully
Avoid cancelling existing insurance before replacement coverage is active

Allowing a policy to lapse may result in the permanent loss of coverage, particularly when health or age makes replacement difficult.

Questions to Ask Before Applying

Before applying for Costco life insurance in Canada, consider asking:

Am I within the current application age range?
How long will the policy remain active?
At what age does coverage expire?
How much will premiums increase at renewal?
What medical information may be required?
Can the policy be converted to permanent insurance?
Are living benefits included?
Which exclusions apply?
Is the benefit amount appropriate for my actual need?
How does the policy compare with other Canadian insurers?

Consumers should rely on the current policy contract and insurer documentation rather than assuming that general descriptions apply to every applicant.

Conclusion

Costco life insurance in Canada provides eligible members with access to term life insurance underwritten by Manulife. Current options include five-, ten-, and twenty-year plans, with different coverage amounts, age requirements, renewal periods, and expiry ages.

Adults ages 55–64 may still have several options for protecting income, debt obligations, and family responsibilities. Those ages 65–74 should pay close attention to new-application limits and retirement affordability. Adults ages 75–84 are more likely to be reviewing an existing policy or comparing alternatives, while people age 85 or older may find that savings and estate-planning strategies are more practical than purchasing new term coverage.

The appropriate decision depends on the applicant’s age, health, financial responsibilities, existing assets, and the length of time protection is needed. Careful research, comparison of policy terms, and review of long-term premiums are essential before making a commitment.

Disclaimer

This article provides general educational information only and does not constitute insurance, financial, legal, or tax advice. Product availability, eligibility ages, premiums, coverage amounts, underwriting requirements, exclusions, and policy terms may vary by provider, province or territory, membership status, and individual circumstances. Confirm current information with the insurer and consult a qualified professional when appropriate.

References

Costco Canada, Costco Services and Term Life Insurance information.
Manulife, Term Life Insurance for Costco Members.
Manulife, Five-Year, Ten-Year, and Twenty-Year Term Life Insurance plan information.
Financial Consumer Agency of Canada, Life Insurance consumer guidance.
Canadian Life and Health Insurance Association, Consumer Guides.

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