Yes, receiving messages is free. You don't even need that perk for that - the perk is meant for sending messages from Canada to anywhere in the world.

Does that apply to receiving international text when I’m located outside of Canada?

Yes, it will be free when you are receiving text messages. You will only need to pay when you are sending out while abroad. 

Might be a bit sidetracked but does this also apply to Telus’ prepaid plans?

As far as I know, Telus prepaid doesn’t work outside of North America - but maybe that has changed by now.

I see!

coz I’ll be away from CAN for a long period of time (could be 1+ year), but I want to keep the phone number. I might need to receive SMS (for account verification etc) from Canada as well.

can you please share on what will be the best option to do that? Tysm!

You can switch it over to the $15 postpaid plan until you come back to Canada. The other way is to port it over to a VoIP service or even Fongo.

When you leave, port your Koodo number to a VoIP service that can handle SMS, such as CallCentric.com.

Incoming SMS can be forwarded by email and you will retain control over your number. for when you get back.