Costco Connection - March 2005

SPECIAL EVENTS

Update
Don’t let your
Wallet expire
Current news for Costco members

SERVICE UPDATES

ARTVILLE

Costco Wallet Full of Savings coupons offer a number of unique savings opportunities on services, but they all expire on April 3, 2005. Look for the service coupons in the center of the Wallet for Real Estate Agent Service, Mortgage Service, Home Equity Financing, Auto Financing, ShareBuilder Online Investing, Online Training and Web Site Hosting.

Medical Savings Card goes wider EXPANSION CONTINUES with the Medical Savings Card program. Members in most states where there are Costco locations can take advantage of the savings built into this plan. Exceptions are Alaska, California, Florida, Idaho, Hawaii, Montana and Vermont.

See the Wallet for full details, or visit costco.com, click on “Services,” then click on “Wallet Offers.”

The Medical Savings Card is not an insurance program but instead provides substantial health-care savings, particularly for members who don’t have insurance, may have pre-existing-condition exclusions in their policy or go to doctors outside their health plan network. The program will also benefit those members who exceed policy limits or need services not covered by their policy, such as dental care or vision correction. Costco members will save up to 40 percent on many health-care services. Executive Members receive lower pricing and pay no enrollment fee.

For additional information about this program, including its full range of benefits, visit costco.com, click on “Services,” then click on “Medical Savings Card,” or call 1-800-869-5494.

New fixed annuity program test

COSTCO HAS STARTED TESTING a fixed annuity program in Colorado. Developed exclusively for Costco members by Costco Insurance Agency Inc. and Symetra Life Insurance Company (formerly Safeco Life Insurance Company), this program consists of two products, Value Choice and Value Choice Plus.

A fixed annuity is a contract between an individual and a life insurance company used most frequently as a retirement savings vehicle. Here are some of the key advantages of this program.

SPECIAL FEATURE

Check out
home equity
for value

Thinking of a home improvement that you can’t live without? Or are you planning to help your child come up with the down payment for a first house? Maybe you’re hoping to consolidate debt?

Whatever project you need to bankroll, make sure home equity is a method of financing that you fully explore.

“You’d be surprised by the number of people who dip into their retirement accounts or prematurely sell stock holdings for projects like those,” says John Gleason, manager of the Home Equity Financing program for Costco.

Retirement funds and stock holdings are best left untouched as long-term savings. Dipping into either can be expensive from a tax-penalty or capital-gains perspective.

Home equity loans or lines of credit are secured against the value of your home, which typically means having a lower interest rate than with unsecured loans. And from a tax angle, the interest may be tax deductible up to $100,000, although you should check with a tax expert about your situation.

Lending Tree is the Home Equity Financing provider for Costco, and has a Wallet promotion (above) for additional savings, available until April 3, 2005. Receive a $100 Costco Cash Card when you close a home equity loan or line of credit. Executive Members get a $200 Costco Cash Card. See the Wallet for details, or visit costco.com, click on “Services,” then click on “Wallet Offers.” For more information, call 1-800-496-8733.

Don’t forget to use your Reward on your next trip to Costco

• These products also have a choice of one-, three- and five-year interest-rate-guarantee periods.

Executive Members receive higher base interest rates, additional first-year interest and lower withdrawal charges in the first three years. Current interest rates are 6. 6 percent for Executive Members with $100,000 or more of initial premium and a one-year interest-rate guarantee. The guaranteed minimum interest rate is 1. 5 percent, and members need only $10,000 to get started. For details and additional information, call toll-free 1-866-485-1305, or visit costco.com, click on “Services,” then click on “Annuities.”

Guarantees and benefits are subject to the claims-paying ability of the underlying insurance company. Value Choice annuities are issued by Symetra Life Insurance Company, Redmond, Washington. The form numbers are LPC-1556 10/04 and LPC-1557 10/04. Rates are current as of 2/1/05.