Costco’s Unum-administered disability plans replace income during disability.

Short-term disability (STD) offers weekly benefits initially, while long-term disability (LTD) provides monthly support if your disability continues.

Disability Insurance

  • Learn about disability benefits below, and see the Summary Plan Description for full plan details.

    Find the Summary Plan Description on the Benefit Documents & Forms page.

  • For information on workers’ compensation benefits for a work-related injury or illness, please see the
    Workplace Accident or Injury page.

Voluntary STD

  • Costco’s Voluntary STD Insurance provides weekly benefits for non-work-related disabilities, starting after 7 days, up to 26 weeks, covering 65% (days 8-90) and 60% (days 91-180) of earnings, up to $2,200/week.

  • Paid via payroll deductions. Claims: Unum at 877-403-9348 or online.

  • In states with paid family leave, that is primary, and STD is secondary, reduced by state payments.

  • Coverage starts after 60 days (30 days for full-time pharmacists). Re-enroll after 6 months if declined.

Salary Continuation

Salary continuation replaces income for salaried employees on medical or bonding leave.

For medical leave, you receive 100% of earnings for 12 weeks, then 60% for up to 26 weeks. The first 40 hours are unpaid, but sick/vacation time can be used.

In states with paid leave, benefits are reduced by state payments.

For bonding leave, you may receive up to five weeks of pay, reduced by state benefits.

LTD

Costco’s Long-Term Disability (LTD) Insurance is free for employees enrolled in a Costco medical plan, with optional additional coverage.

LTD benefits begin after 26 weeks of disability, replacing 60% of monthly earnings (80% for severe disability after 10 years), up to $15,000/month. Minimum benefit: $100/month for full-time, $50/month for part-time employees.

Healthcare Protect Benefit covers healthcare costs after 12 months, up to 17 months under certain conditions.

FAQs

  • Hourly employees are automatically enrolled in Voluntary STD, unless they decline the coverage.

    You will receive a Benefits Enrollment Notice from Costco notifying you of when your Voluntary STD Insurance is scheduled to begin.

    As described in the notice, you may decline coverage up to 31 days after that date through the Enrollment Website or by calling the Enrollment Center at 800-541-6205.

  • You will get a special Benefits Enrollment Notice from Costco notifying you of when your Voluntary STD Insurance is scheduled to begin.

    As described in the notice, you may decline participation up to 31 days after that date. Other than that, you can only drop or add this coverage during Annual Enrollment.

  • ​If you decline Voluntary STD Insurance and then elect to participate during a subsequent Annual Enrollment, you will have a six-month waiting period.

    Counted from the next January 1, that means your coverage will not start until July 1.

  • Costco pays the full cost of your health care benefits during your leave for up to 90 days.

    If your leave exceeds 90 days, you must begin paying your regular benefit contributions to continue your health care coverage (medical, dental, prescription drug and vision).

    See Benefits While on Leave for more information.

  • Hourly Employees: Base monthly earnings are the higher of:

    1. The monthly average of hourly earnings from the last 13 pay periods (excluding zero-earnings periods).

    2. Hourly rate on your last workday, multiplied by 36 (full-time) or 23 (part-time), converted to a monthly amount.
      Excludes commissions, overtime, or extra pay; includes regular premium pay.

    • Salaried Employees: Annual salary before disability, divided by 12. For non-exempt managers, includes overtime averaged over the last 8 pay periods (up to 5 hours/week).
      Excludes commissions, bonuses, or extra compensation.

    For leave-related disability, earnings are based on your wage or salary before the leave began.

  • In states with paid family leave, state benefits provide primary coverage, and Voluntary STD applies with reduced payroll deductions.

    Unum offsets STD benefits by your state eligibility, even without a state claim.

  • If you live in one of these states, you are covered by a state disability program.

    You are not eligible for Costco's Voluntary Short-Term Disability.​