AuguStar Life Introduces Enhanced Living Benefits for Clients' Financial Flexibility

AuguStar Life Introduces Enhanced Living Benefits for Clients’ Financial Flexibility

AuguStar Life, an integral part of the Constellation business family, has recently upgraded its LiveNow Access accelerated benefit rider by introducing a crucial critical illness feature. This enhancement is designed to provide clients with increased freedom in managing their insurance benefits, especially during some of life’s most challenging times.

New Critical Illness Feature

The introduction of the critical illness feature is a significant development that complements the existing suite of living benefits already available under the LiveNow Access rider. These living benefits also encompass chronic and terminal illness coverage, which enables policyholders to draw a portion of their death benefit while they are still alive, should they face a qualifying illness. This feature not only offers essential financial support at critical moments but also aids clients in directing funds toward any purpose, thus enhancing their overall financial flexibility.

Clarity and Control with Innovative Approach

One of the standout aspects of AuguStar’s LiveNow Access rider is its transparent approach. Unlike many industry-standard discount-based methods that obscure the access process, AuguStar’s lien method stands out by showing clients how much benefit they can access in advance, detailing its impact on the remaining death benefit. This transparency equips clients with the knowledge they need to make informed decisions regarding their policies.

Jack Heller, the Vice President and Chief Distribution Officer at AuguStar Life, emphasizes the importance of the calculations that lead to benefit access, stating, "As more carriers offer accelerated benefit riders, how benefits are calculated matters." This insight underscores the company's commitment to ensuring clients fully understand their available options and the ramifications of tapping into their benefits.

Emphasizing Transparency and Predictability

Under the structure provided by AuguStar Life, the client’s eligibility for the benefit does not necessitate additional underwriting at the time of claim. Clients can visualize the maximum benefit amounts prior to taking any action. Furthermore, when a client takes a benefit, a lien is created against the policy’s death benefit, which includes the benefit amount taken and an administrative fee. This lien incurs carrying charges over time but is transparent in its workings, providing a clear deduction from the eventual death benefit when the policyholder passes away.

This starkly contrasts with discount-based riders that often leverage life expectancy and condition severity at the claim time, leading to reduced payouts and diminished remaining death benefits.

Flexibility in Usage

The LiveNow Access benefits are not restricted to specific expenses; they can be utilized for health-related costs or personal aspirations, thereby allowing policyholders to adapt their benefits to their immediate needs without altering premium rates after accessing benefits. Additionally, this rider is available on select permanent life insurance products issued by AuguStar Life, although availability may vary by state.

About AuguStar Life

AuguStar Life provides various life insurance products including indexed universal life, indexed whole life, term, and bank-owned life insurance. This firm operates through a comprehensive national network of agencies and independent marketing organizations. It is a proud member of the Constellation family, which includes several prominent financial and investment companies. Its investors are among North America's largest long-term institutional investors, managing substantial assets. For further information, clients can visit auguStarfinancial.com.

In summary, the enhancements made to the LiveNow Access rider by AuguStar Life signify a milestone in insuring financial flexibility and transparency for policyholders. By equipping clients with easy access to their benefits and enabling better financial decision-making, AuguStar takes significant strides in the realm of life insurance products.