{"id":118,"title":"Costco Life Insurance Plan 2026 for Older Adults in Canada: Coverage, Rates and Eligibility Guide","slug":"costco-life-insurance-plan-2026-for-older-adults-in-canada-coverage-rates-and-eligibility-guide","lang":"en","description":"Older Canadians often review life insurance when preparing for retirement, paying down remaining debts, planning funeral expenses or leaving financial support for family members. Costco members may also wonder whether their membership provides access to a suitable life insurance option in 2026.","content":"

How Costco Life Insurance Works in Canada

Costco acts as a membership channel through which eligible members can learn about and apply for Manulife term life insurance. The insurance contract, underwriting decisions, claims administration and policy obligations remain with Manulife.

As of 2026, the main term options presented for Costco members are:

Policy option	Rate period	General purpose
5-year term life	Rates guaranteed for 5 years	Shorter financial obligations or temporary coverage
10-year term life	Rates guaranteed for 10 years	Medium-term family, income or debt protection
20-year term life	Rates guaranteed for 20 years	Longer obligations and more predictable premiums
FollowMe Life	Subject to plan terms	Continuing some protection after group coverage ends

The 20-year term option currently advertises coverage amounts from $50,000 to $2 million and includes extended coverage provisions up to age 90. This does not mean every person can first purchase the plan at any age up to 90. Application ages, renewal limits and eligibility rules must be confirmed in the current policy documents.

Executive members may have access to additional member savings, but a membership discount should be evaluated alongside the final premium, policy features, renewal schedule and total expected cost.

Term Life Insurance Versus Permanent Life Insurance

Costco’s listed member offering focuses on term life insurance. Term insurance provides protection for a defined period, such as 5, 10 or 20 years. When the insured person dies while an eligible policy is active, the insurer pays the stated death benefit to the designated beneficiary.

Term policies generally do not accumulate cash value. Coverage may end when the term expires unless the contract permits renewal or continuation. Premiums may also increase significantly at renewal, especially when the policyholder is older.

Permanent life insurance, including whole life and universal life, is designed to remain in force for life when contractual requirements and premium payments are met. Some permanent policies build cash value, but their initial premiums are normally higher than those of comparable term policies.

The Financial Consumer Agency of Canada advises consumers to distinguish carefully between these structures. It notes that term premiums are generally lower when coverage is first purchased, while renewal premiums can rise as the insured person ages.

For older adults, the appropriate structure depends on whether the need is temporary or lifelong. A remaining mortgage may require coverage for only several years, while funeral planning or estate liquidity may create a longer-term need.

Life Insurance Rates by Age

There is no single Senior Life Insurance Rates by Age Chart that accurately predicts what every Canadian applicant will pay. Insurers calculate premiums using several variables, including:

Current age
Sex or underwriting classification
Smoking or nicotine use
Medical history
Prescription history
Coverage amount
Policy length
Lifestyle and occupational factors
Results of medical underwriting

The general relationship between age and price can be presented without quoting misleading sample premiums:

Age at application	General rate tendency	Common consideration
60–64	Lower than later senior age groups, all else equal	More term lengths may remain available
65–69	Premiums usually increase	Applicants should examine the renewal age and schedule
70–74	Higher underwriting cost is common	Available terms and coverage amounts may narrow
75 and older	Options may be more limited	Permanent or simplified products may also be compared

This table is explanatory rather than a quote. Actual senior life insurance rates may differ substantially between two people of the same age.

Consumers looking for life insurance rates by age should request personalized illustrations using the same benefit amount and policy duration. Comparing a $50,000 five-year policy with a $250,000 permanent policy would not produce a meaningful price comparison.

Life Insurance for Seniors Over 60

People researching life insurance for seniors over 60 often still have several policy categories available. At this stage, it is useful to define the financial need before selecting a coverage amount.

Potential needs may include:

Replacing pension or employment income for a spouse
Paying a mortgage, loan or line of credit
Funding funeral and estate-related costs
Supporting a dependent child or adult family member
Creating a charitable or family legacy
Supplementing existing workplace insurance

An applicant should first review current assets, debts, savings and employer coverage. Purchasing more insurance than the household reasonably needs can create unnecessary premium pressure during retirement.

Life Insurance for Age 65 and Older

The search for life insurance for 65 and older often begins near retirement, when employer-sponsored protection may be reduced or discontinued.

Costco members in this situation may examine the available term products, but they should also review the FollowMe Life option. Manulife describes this plan as a way for eligible applicants to continue protection after group coverage ends when they apply within 60 days. Acceptance may be guaranteed without a medical examination or questionnaire at application, although limitations, exclusions and conditions apply.

This type of continuation option can differ from buying a new individually underwritten policy. Applicants should compare:

Maximum coverage available
Application deadline
Premium schedule
Expiry or termination age
Beneficiary provisions
Exclusions and limitations

Life Insurance for Senior Citizens Over 70

Obtaining life insurance for senior citizens over 70 may be possible, but product availability typically becomes narrower and premiums generally become higher.

An older applicant may encounter fully underwritten coverage, simplified-issue insurance or guaranteed-acceptance products. Fully underwritten policies may ask more detailed health questions or require medical evidence, but they may offer different pricing or benefit levels. Simplified and guaranteed products involve fewer health requirements, although they may cost more per dollar of coverage or include graded-benefit periods.

People searching for the cheapest life insurance for seniors over 70 should avoid choosing a policy based only on the first monthly premium displayed. A lower initial payment may be offset by frequent renewal increases, a shorter term, a smaller benefit or more restrictive policy conditions.

A more reliable comparison uses the same:

Death benefit
Coverage duration
Smoking status
Payment frequency
Renewal assumptions
Health information
Optional benefits

Medical Underwriting and Approval

Some applications can be completed without an immediate medical examination, but this should not be interpreted as automatic acceptance. Manulife states that it may request medical information, including tests or additional questions, when needed to evaluate an application.

Applicants should answer all health and lifestyle questions accurately. Incorrect or incomplete information can affect policy validity or a future claim.

Older adults should also distinguish between “no medical exam,” “simplified issue” and “guaranteed acceptance.” These terms do not always describe the same underwriting process.

Questions to Ask Before Applying

Before selecting a Costco-connected plan or another Canadian policy, consider asking:

Who legally underwrites the policy?
What are the minimum and maximum entry ages?
Does coverage end or continue at a specific age?
Are premiums level for the full term?
What will the renewal premium be?
Is conversion to permanent insurance available?
Are medical tests or records required?
Are there exclusions or waiting periods?
Can the coverage amount be reduced later?
What happens if Costco membership ends?

Beneficiary designations also deserve attention. The Financial Consumer Agency of Canada notes that policyholders may name one or more beneficiaries and should periodically review their selections. Rules may differ in Quebec, particularly when a spouse is designated as beneficiary.

Conclusion

The Costco life insurance option in Canada can provide members with access to Manulife term life products, including 5-, 10- and 20-year plans. It is not a universal senior life insurance plan, and membership alone does not guarantee approval or a particular rate.

Older adults should evaluate the purpose of coverage, the length of the financial need, underwriting requirements, renewal premiums and policy termination age. A personalized quote is more useful than a generic age chart because rates depend on more than age alone.

Comparing Costco-connected coverage with other term, permanent and group-conversion options can help Canadian households identify a policy structure that matches their actual financial obligations.

Disclaimer

This article provides general information only and does not constitute insurance, legal, tax or financial advice. Insurance products, rates, eligibility, underwriting requirements, benefits and availability may vary by provider, province, location and individual circumstances. Review the current policy documents and consult a licensed insurance professional before making a decision.

References

Costco Canada, “Costco Services—Term Life Insurance.”
Manulife, “Term Life Insurance for Costco Members.”
Financial Consumer Agency of Canada, “Life Insurance.”
Canadian Life and Health Insurance Association, consumer and industry information.

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