At Unity Insurance, we believe in building strong, long-lasting relationships.
Our annual reviews are a key part of that commitment. We take time with you as our client to understand your changing needs and goals, and work with you to ensure your planning is up to date and tailored to meet your specific needs.
This proactive approach helps identify potential gaps in your planning. Working with Unity allows you to leverage our expertise and commitment to client care, while also keeping you in the driver’s seat of your financial future.
The Client's Story
Unity has been working with Sarah, a successful business owner in her early 50s for several years. Sarah owns a corporation with significant investments in land and real estate. During our annual review this year, we took a closer look at Sarah’s tax and estate plan, given the substantial growth in the value of her properties.
Identifying The Issue
During our review, Unity learned that the value of Sarah’s real estate holdings had increased significantly more than she had anticipated. This growth was great news for her business, but it also created a potential funding gap in her estate plan. The increased value meant potentially higher taxes upon her passing, which could place a significant financial burden on her heirs. The life insurance solution Sarah put in place in years’ past was no longer adequate.
Educating The Client
We explained to Sarah the implications of this growth. Without proper planning, her kids may face a substantial tax bill that could force them to sell off parts of the business to cover the costs. This was not in line with Sarah’s wishes. She wanted to ensure her business and properties remained intact for future generations.
Creating a Solution
Understanding the urgency, Unity proposed an insurance solution to address this funding gap. We discussed the benefits of a permanent life insurance policy that could provide the necessary liquidity to cover the potential tax liabilities. The plan was tax efficient and structured to fit within Sarah’s free cash flow. The new policy would ensure that her heirs had the funds needed to pay the taxes without having to sell any of the properties.
Taking Action
Sarah agreed that this was a prudent step. We worked together to secure a participating life insurance policy tailored to her needs. This policy provided a death benefit that matched, and would grow with the estimated tax liability, ensuring Sarah’s estate plan was fully funded.
The Outcome
By implementing this insurance solution, Sarah secured the future of her business and properties. Her heirs would now have the financial resources to cover any tax liabilities, preserving the estate as she intended. This proactive approach put Sarah in a much better position and provided her with peace of mind.
Reflections
Sarah’s story is a great reminder of why annual reviews are so important. They’re more than just a routine check-in; they’re a chance to make sure that what you have in place is still protecting what it’s supposed to. For Sarah, this meant reassessing her business succession plan to ensure a smooth transition for future generations.
Conclusion
We’re sharing this story to show how working together can make a big difference in your life and financial future. When you work with Unity, you’re getting more than just insurance expertise. You’re getting a dedicated team committed to the care of our clients for all stages of their life.