AuguStar Life Insurance is the rebranded name of Ohio National Life Insurance Company, launched by Constellation Insurance, Inc. in July 2023.
This article reviews the life insurance company, its products, niches, and underwriting.
Financial Strength
AuguStar Life is part of Constellation Insurance, which is supported by two Canadian firms, CDPQ and Ontario Teachers, two of the largest institutional investors in North America.
It’s an increasingly global world as Canadian, European, and Japanese life insurance companies invest in U.S. companies.
As of December 2023:
- Total Assets Under Management: $34.7 billion.
- Revenue: $2.3 billion
As a comparison, New York Life has $700 billion in assets under management. Northwestern Mutual had $31 billion in revenue.
Financial Strength Ratings as of 12/2024:
- AM Best: A (Excellent)
- Fitch: A-
- Moody’s: Baa1
Companies with similar AM Best ratings include Corebridge Financial, Brighthouse, SBLI, Symetra, and Wellabe.
Life Insurance Policies Offered by AuguStar Life
AuguStar Life offers a comprehensive portfolio of life insurance products:
- Term Life Insurance
- Indexed Universal Life
- Indexed Whole Life
- Universal Life
- Whole Life
AuguStar Term Life Insurance
Three term life insurance products are available:
- Flex Term Basic
- Least expensive
- Term lengths – 10, 15 and 20-year terms
- Limited conversion period from 2-5 years
- Limited riders
- Flex Term Plus
- Term lengths – 10, 15 and 20-year terms
- Conversion period from 8-15 years
- Recap Term
- Designed for those planning to convert to permanent insurance later.
- Recapture term premiums when you convert
- Term lengths – 10, 15 and 20-year terms
- Conversion period available for first 10 years
- Cumulative conversion credit for years 2-5
- Annual conversion credit for years 6-10
Conversion credits equal to some or all of the term premium you paid are credited towards the new universal life or whole life insurance policy.
AuguStar’s term lengths are comparable to those of Prudential and United of Omaha. Still, they are limited compared to competitors like Banner Life and Protective Life, which offer term lengths of up to 40 years.
AuguStar Term Life Insurance Riders
The following riders may be available if you qualify:
- Accelerated Death Benefit
- Accidental Death Benefit
- Family Term Rider (Term Plus product)
- Guaranteed Purchase Option (Term Plus product)
- Waiver of Premium
It’s always best to request an illustration of these products so that you can compare them to other companies you may consider.
Universal Life Insurance by AuguStar
If you want permanent insurance, AuguStar offers several universal life insurance policies.
The Virtus IUL II allows you to accumulate cash values, with the rate of interest credited to the policy based on an index or a fixed interest account.
The Virtus Protect IUL offers strong no-lapse guaranteed death benefits and a choice of index interest accounts.
| Highlights | Virtus IUL II | Virtus Protect IUL |
|---|---|---|
| Minimum Face | $100,000 | $100,000 |
| Issue Ages | 0-80 | 18-80 |
| Death Benefit | Level or Increasing | Level |
| Index Interest Accounts | S&P 500 Russell 2000 EuroStoxx 50 | S&P 500 Russell 2000 EuroStoxx 50 |
| No Lapse Guarantees | Ages 0-60 = 20 Years 61-69 = To Age 80 70-75 = 10 Years 76-80 = To Age 85 | Ages 18-35 = 55 Years 36-80 = To Age 90 70-75 = 10 Years 76-80 = To Age 85 |
| Riders | Additional Insured Term Children’s Term Waiver of Premium Guaranteed Purchase Option Overloan Protection Accelerated Benefits | Children’s Term Waiver of Premium Guaranteed Purchase Option Overloan Protection Accelerated Benefits |
| Loans | Standard Loans Index Loans | Standard Loans Index Loans |
Virtus Riders
Virtus IUL II and Virtus Protect IUL offer several riders to help you further customize your policy.
Additional Insured Rider – Offers term insurance up to four times the base policy on someone else.
Children’s Term Rider – Provides term insurance for your children. Coverage amounts range from $1,000 to $25,000. The coverage is convertible to permanent insurance when the child reaches age 18, but strangely, the underwriting rate class offered is a standard smoker rate.
Waiver of Premium Rider – Pays a stipulated amount upon total disability.
Guaranteed Purchase Option Rider – Guarantees the right to buy more permanent insurance without having to go through medical underwriting. It’s a nice option to have as we get this question all the time from clients.
Overloan Protection Rider – Prevents the policy from lapsing when you have an outstanding loan. If you are buying a policy to build up a cash value that you will access in retirement via policy loans, you need to add overloan protection to prevent your policy from lapsing. Transamerica offers this as well.
Accelerated Benefit Rider – Accelerates a portion of the death benefit for chronic or terminal illness. Although it is not a long-term care insurance policy, the proceeds may be used for that purpose.
The amount available for access and the reason, whether due to a chronic or terminal illness, vary greatly from company to company. For example, some companies consider terminal illness to have a life expectancy of 12 months or less, while others use 24 months.
Companies to compare products include Progressive, John Hancock, Lincoln National, and Pacific Life.
Index Whole Life Insurance by AuguStar
AuguStar’s prestige-indexed whole Life Insurance product is unique; not many companies offer this type of insurance.
- Prestige Index Whole Life Highlights:
- Minimum Face – $100,000
- Issue Ages: 0-75
- Level Death Benefit
- Index Interest Accounts
- S&P 500
- Russell 2000
- EuroStoxx 50
- Riders:
- Accelerated Benefits
- Children’s Term
- Guaranteed Purchase Option
- Overloan Protection
- Waiver of Premium
Crediting options available include:
- Capped S&P 500 index
- Uncapped S&P 500 index
- Russell 2000 Index
- Dow Jones EuroStoxx
- Fixed Interest Account
Starting in year 11, your policy account value is credited with an additional 20 basis points.
Optional riders include:
- Accelerated Benefit Rider
- Children’s Term Rider
- Guaranteed Purchase Option
- Overloan Protection Rider
- Single Premium Rider
When evaluating a whole life insurance policy, be sure to also consider the leaders in the whole life insurance industry, including Guardian, MassMutual, and Penn Mutual.
Augustar Underwriting
Like most companies, Augustar offers programs to speed up the underwriting process for you.
ClearPath Underwriting
Augustar offers the ClearPath accelerated underwriting program available for:
- Ages 18-60
- Permanent Products:
- Ages 18-50 up to $2,000,000
- Ages 51-60 up to $1,000,000
- Term Life Insurance Products:
- Ages 18-50 up to $1,000,000. Yearly renewable term not available.
- Augustar uses an eApp process.
- Personal interviews are not required.
- Guaranteed Purchase Rider is not available
If you’re in good health, you can receive a policy in as little as 5 days without undergoing a paramedical exam or waiting for medical records to arrive.
Like its predecessor, Ohio National, Augustar is not known for high-risk underwriting. Therefore, if you have a heart condition, gastrointestinal condition, or a history of cancer, other companies may be a better option.
Final expense insurance policies, such as those offered by Colonial Penn or TruStage, are not available.
LevelUp Underwriting Program
Healthy lifestyle habits can reward you with Augustar through the LevelUp program. If you qualify, you can receive a one-rate class upgrade.
Factors considered include:
- Be no more than 5-10 pounds over the weight limit for the upgraded class.
- Have a family history of longevity
- Be a lifelong non-smoker
- Engage in regular exercise
- LDL Cholesterol <100
- HDL Cholesterol >80
- Total Cholesterol <200
- Blood Pressure below 140/80
- Practice Preventive Care – annual physicals, mammograms, PSA blood tests
If you meet the program’s criteria, underwriting will automatically consider you for the better rate class.
FAQ
If you have questions about AugusStar Life, we have the answers.
Final Thoughts
When the company was still Ohio National, it burned its bridges with many independent agents who distributed its products.
They don’t have much to offer that you can’t find at another life insurance company that is bigger, better, and financially stronger.
Take a few minutes to submit your quote request today, and we’ll provide you with comparisons.
