AuguStar Life enhances its suite of living benefits

AuguStar Life , a Constellation business, has enhanced its LiveNow Access accelerated benefit rider by adding a critical illness feature, expanding the living benefits available to policyholders. The rider already included chronic and terminal illness benefits and allows eligible clients to access a portion of their life insurance death benefit during their lifetime for any purpose.

LiveNow Access uses a lien-based approach rather than the more common discount method. Under this structure, policyholders can see in advance how much of their death benefit they may access and how the acceleration will affect the remaining benefit. Once a claim is approved, a lien equal to the accelerated amount plus a one-time administrative fee is placed against the policy, with carrying charges deducted from the death benefit upon the insured’s death.

According to AuguStar, the rider does not require additional underwriting at the time of claim, premiums and policy charges remain unchanged after benefits are taken, and benefits can be used for any purpose.

The updated LiveNow Access rider is available on select permanent life insurance products issued by AuguStar Life Insurance Company, although it is not yet available in California or Florida, and features vary by state.

“As more carriers offer accelerated benefit riders, how benefits are calculated matters. Our approach gives clients clarity upfront so they can see what they can access and what remains for their loved ones.” – AuguStar Life vice president and chief distribution officer, Jack Heller.