ONST- The Perfect Partner – Client Case Study
Sam and Katie Smith (not actual names) have been clients of ours for several years. They have various types of accounts that we manage, but I’d like to tell you about one, their insurance trust. It contained a variable life policy on Sam’s life worth $940,000. The annual premium on this policy was over $34,000, and the trust was the beneficiary of the policy with their daughter originally being named as trustee. As part of our routine estate planning process with the Smiths (as we do with all our clients), we discussed the trust and this policy.
Since it had been purchased some years earlier, we felt that the policy should be reviewed, as it could potentially be replaced. We contacted an independent insurance advisor to review the policy. He did so and advised that, since the policy had been purchased when rates were much higher, he felt that he could exchange the policy for a much more suitable one. He shopped around and we found a new, second to die policy on both spouses’ life worth $1.2MM and the premium was reduced to $14,000! Obviously, this was a win-win situation all the way around. The clients were ecstatic and so were we! They decided that it would be in their best interests to change the trustee to Old North State Trust (ONST) as their daughter was just too busy to be able to keep track of the policy and to manage the funds upon their passing. They were extremely grateful for our help and appreciative of the fact that we were able to bring in an outside partner to provide the expertise that we did not have in-house.
At ONST, we don’t always expect to have all the answers, but we do answer all the expectations of the clients! We are also able to collaborate with other advisors to meet the needs of our clients, no matter what the needs may be- whether it is a service we offer in house or not. Our goal is to be flexible and a full-service provider to our clients and to assist them in every way. We are so much more than just a financial service company as you’ll see by this article and from future examples. You can also call one of our advisors who would be more than happy to discuss any issues with you.