AuguStar Life Adds Critical Illness Coverage to LiveNow Rider

The new feature complements existing coverage for chronic and terminal illnesses, enabling clients to access funds for personal or medical needs without the uncertainty often associated with industry-standard discount models. By utilizing a lien-based method, AuguStar provides policyholders with a clear view of their remaining death benefit and the specific impact of any withdrawals before they are made.

Jack Heller, vice president and chief distribution officer, noted that the approach prioritizes upfront clarity, allowing financial professionals to set realistic expectations for clients. Unlike discount-based riders that calculate payouts based on life expectancy or the severity of a condition at the time of a claim, the lien system avoids unpredictable reductions in coverage. Under this structure, a lien is placed against the policy for the amount taken plus administrative fees, with carrying charges applied until the policyholder passes away. The rider is currently available on select permanent life insurance products, though features and availability remain subject to individual state regulations.