Money Management

Costco Travel is one perk of membership that could be worth exploring. Here’s why. 

Costco Travel is a benefit that many members of the warehouse club giant don’t utilize or understand, but it can be rather valuable, especially for members who prefer all-in-one vacation packages over buying flights, hotels, and other trip components separately. While Costco isn’t always the cheapest option, it often offers better prices than the competition, as well as unique benefits for travelers.

In this article, I’ll give an overview of Costco Travel’s products, pricing, and benefits, and tell you how to decide whether it could be a good fit for booking your next vacation.

Is Costco Travel cheaper than booking directly?

Costco allows members to book hotels as a stand-alone reservation (but not individual flights), although it clearly specializes in vacation packages. And according to many experts, Costco often beats travel packages you can find elsewhere, although this isn’t always the case.

For example, Costco doesn’t partner with several budget airlines, so you might be able to fly to your destination for cheaper than what a Costco package offers. It also partners with just a few rental car companies, and not the budget brands. So, if you want to plan a trip as cheaply as possible, you may want to comparison shop by booking your flights and rental cars directly with the budget carrier of your choice.

When it comes to cruises, Costco typically offers its value in the form of onboard credit. According to an analysis by Fodor’s, Costco generally charges similar prices to booking directly, but typically offers an onboard credit equal to about 8% of the fare paid. However, Costco Travel offers Kirkland Signature deals on certain cruises that can be much cheaper than the direct prices.

In fact, Fodor’s analysis found that while Costco Travel generally had the same prices (or within $200) of other major travel sites like Travelocity and Expedia, the extra perks it offers — such as room upgrades, credits, gift cards, etc. — are typically the biggest differentiator.

Extra perks for Executive members

It’s also important to point out that Costco Executive members get extra travel benefits, which can certainly justify the additional $60 you’ll pay for the upgraded membership tier. These can come in the form of resort credits, spa credits, onboard spending credits for cruises, or other perks. Just to name a few examples, here are a few Executive member perks currently listed on Costco Travel:

A $100 resort credit on a seven-night stay at a family friendly resort in Turks and Caicos.A $100 spa credit when booking a suite at an all-inclusive resort in the Dominican Republic.$100 in additional shipboard credit on a seven-night Alaska cruise.A private beach picnic lunch for two on stays of three nights or more at a resort in Fiji.

Plus, with an Executive membership, you get 2% back in Costco rewards on all purchases, including travel packages (capped at rewards of $1,000 per year).

What’s more, regardless of which type of Costco membership you have, you can get 3% in additional Costco Rewards on travel purchases by using the Costco Anywhere Visa® Card by Citi. There are other travel credit cards with excellent perks and rewards as well that could help you maximize your travel dollars.

The bottom line on Costco Travel

Costco Travel can be a nice perk of your membership, especially if you want all-in-one vacation packages and like to travel often. Costco’s travel packages aren’t a great fit for everyone and aren’t always cheaper than booking directly, so it is still important to shop around.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Visa. The Motley Fool has a disclosure policy.

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Want to get rid of your life insurance policy? Read on to see how to go about it and what happens once you do. 

The purpose of paying for life insurance is to protect your loved ones from financial distress in the event of your passing. But there may come a point in time when you decide that you no longer need life insurance — and you no longer wish to be paying the premiums it costs to keep your policy active.

Let’s say you have a $500,000 life insurance policy in place, but a wealthy family member of yours passes away and leaves you with a $500,000 inheritance. You may decide to invest that money or put it into a savings account you pledge not to touch so it doesn’t run out, at which point it could conceivably take the place of your life insurance policy.

Or, other circumstances might change that make it so you no longer want or feel you need life insurance. In many cases, canceling your policy is easy. You simply reach out to your life insurance company and let them know you no longer want your coverage.

Even if you don’t do that, if you stop making your payments, your coverage will lapse at some point. Life insurance companies aren’t in the business of giving people coverage for free.

In some cases, canceling a life insurance policy will mean getting a cash payout from your insurance company. But that’s not always what happens.

When you are and aren’t entitled to a payday

Term life insurance does not accumulate any sort of cash value. If you buy a 20-year, $500,000 life insurance policy and don’t pass away during that time, you won’t get any money from your insurer after those two decades. Similarly, if you cancel a term life insurance policy at any point, you won’t be entitled to any sort of payday.

But things may be different if you have whole life insurance. Whole life insurance policies do accumulate a cash value over time. So depending on when you cancel your policy, you may be entitled to take that cash value with you.

Should you cancel your life insurance policy?

The decision to cancel a life insurance policy is a big one, so it’s important to think carefully before going this route. If you’re looking to cancel because you’re having a hard time keeping up with the cost of your premiums, you may want to consider replacing your current policy with a less expensive one. This could mean going from whole life insurance to term life insurance, which can be a lot cheaper.

In fact, Forbes says that the cost of a $500,000 life insurance policy for a 30-year-old male might be $4,323 a year for whole life insurance versus $232 a year for a 20-year term policy. That’s a huge difference.

You might also consider buying a policy with a smaller benefit. For example, a $500,000 life insurance policy is apt to cost you less than a $1 million policy will. And while that won’t give your loved ones as much financial protection, having some amount of life insurance is better than having none.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Costco kayaks are priced low, but are they worth it? Learn whether a Costco kayak might be worth buying. 

Costco kayaks are reasonably priced and come with important gear (like paddles and cartop carriers) that can put you out in the water without setting back your personal finance goals. The variety might be lacking, but if you’re looking for a beginner kayak, Costco might be the place to buy one cheaply. Let’s take a look at why you should buy a Costco kayak, as well as some reasons for shopping elsewhere.

Buy a Costco kayak if price is the most important factor

The low prices on Costco kayaks could be perfect for the casual kayaker who just wants to relax in the water and doesn’t need something for demanding rapids or deep, tumultuous seas.

The Pelican Mission Sit-In Kayak, for instance, is one of Costco lowest priced single kayaks. The retail price is $400 online and comes with a paddle and cartop carrier. You could also look at Costco inflatable kayaks, which are reasonably priced between $159 and $200 online. Its tandem kayak is one of the lowest priced two-person kayaks I’ve seen: $500, and it even comes with two paddles.

Now, I will say — If price is of utmost importance to you, I would also scan Facebook Marketplace for a used kayak. If you’re okay with buying it used, you can find some incredible deals on kayaks, many priced below the $400 Pelican kayaks at Costco.

Shop elsewhere if you want higher quality or more variety

Since Costco isn’t an outdoor recreational store, it’s likely going to stock lower-priced kayaks that have broad appeal. For those looking for higher-performance kayaks, then you’ll likely have to shop at another store, like REI.

For instance, I wouldn’t buy a Costco kayak if I was planning to paddle in rough ocean or down rapids, as I would want something more durable and stable for those courses. At the very least, I would test out the kayak to see how fast it could go and how easily it would flip over.

However, I wouldn’t rule out Costco altogether. Even if you prefer kayaks that Costco doesn’t sell, you might want to buy a low-priced kayak for friends or family, especially if they don’t own their own but want to go out in the water with you. Again, you could look on Facebook Marketplace or other local resellers, too. But if you can’t find cheap kayaks used, Costco could help you buy a second one for some company.

One good thing about Costco kayaks is that you have 365 days to return them for a full refund. This might be a good idea if you want to test how comfortable these kayaks are. Often, you’ll be sitting in a kayak for hours, so if it’s uncomfortable you have a reasonable excuse to take it back.

All in all, I’d say, if you’re learning how to kayak or going down a relaxing course, a Costco kayak will give you a vessel at a very competitive price. At the very least you could try its kayak and return it for a full refund to your credit card if you’re not 100% satisfied.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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