AuguStar^SM Life, a Constellation company, announces the launch of Virtus Protection Indexed Universal Life Insurance, strengthening its lineup of indexed life insurance products.

Karl Kreunen, AuguStar Life vice president and chief distribution officer, traditional channel, emphasizes the benefits of the latest AuguStar Life indexed product, “Virtus Protection IUL represents AuguStar's ongoing commitment to providing competitive products to financial professionals, helping them bolster their practices and meet a wide variety of client needs. For legacy-focused clients, this product lets financial professionals offer low-cost protection with a bundled rider that helps ensure that protection will be there for the long term, all with the flexibility that's a hallmark of indexed universal life insurance products.”

Virtus Protection IUL offers protection-forward coverage with accumulation potential through the following features:

• Low-cost death benefit protection – Virtus Protection IUL is focused on providing strong death benefits at lower costs than accumulation-focused IUL products, competing with some of the best protection IUL products in the industry, Virtus Protection IUL’s death benefit is paid to beneficiaries on an income tax-free basis, helping to give them peace of mind.
• Extended no-lapse guarantee – This rider ensures that, depending on the client’s age at issue, the policy will not lapse for 55 years or until age 90, even if the cash surrender value is $0.¹
• Cash value growth options & protections – The policyholder can allocate any cash value in the policy among three index accounts and one fixed interest account – each earning interest in a different way. Each index account has a 0% “floor,” meaning negative index performance alone won’t reduce the death benefit or cash value. A 2% account value true-up is also built into the product to help make up for lost growth in the unlikely event the index account shows zero growth every year.²

Additionally, Virtus Protection IUL can help business owners fund a buy-sell agreement, provide capital for the business upon an owner’s death, equitably distribute a business owner’s estate or meet other needs.

“AuguStar Life continues to focus on creating the best indexed life insurance products on the market that address policyholder needs in current marketplace conditions,” Kreunen added. “We’re particularly excited about this product’s ability to protect your policy as you age, thanks to robust protection and accumulation potential.”

Virtus Protection IUL has index-linked interest crediting which operates with caps and floors. This allows for the ability to potentially earn interest when the index increases, yet prevents the account from decreasing due to an index decline.

¹ As long as the cumulative premium paid, accumulated at interest (less any outstanding loans and withdrawals, also accumulated at interest) equals or exceeds the cumulative Extended No Lapse Premiums due to date

² The 2% cumulative Account Value True-up guarantees that upon policy cancellation (“full surrender”) or death in policy year six or later, the cash value will never be less than it would have been if all premiums had been allocated to the Fixed Account and credited with 2% interest since issue.

Minimum premiums must be met for the guaranteed death benefit to remain in place.

Withdrawals may reduce the death benefit, cash surrender value and any living benefit amount.

Indexed universal life insurance is issued by AuguStarSM Life Assurance Corporation. Guarantees based on the claims-paying ability of the issuer. Guarantees do not apply to the investment performance of any chosen index. Product, product features and rider availability vary by state. Issuer not licensed to conduct business in NY.