Frequently Asked Questions

In this section, we have added some of the questions most often asked by our clients.  If you don't find the answer to your question, please feel free to call us, or email at info@provisionmanagers.com.

Do you charge for your consultations?

     Whether you found us online, are a referral, or attended one of our seminars, 

     our consulations are always free. You can request a free consultation here.

How do you get paid?

     We are paid on commission. That being said, our commission is paid directely

     from the company and never comes out of your money. 100% of your money

     goes to work for you 100% of the time.

What is an annuity?

     An annuity, by definition, is a contract with an insurance company that is 

     designed to grow your money and then pay an income stream through what is

     called annuitization. Annuitizing a policy is the traditional way of

     taking an income stream, and in rare cases, is still utilized today. However,

     over the years, annuities have evolved making income easier and less

     constraining. Today, annuities offer a wide range of ways to take income

     through what are called income riders. Income riders are not an annuitization,

     and therefore do not lock you into a payout that you cannot stop. Modern day

     annuities also offer many different ways to earn interest. You can still purchase

     the traditional straight interest paying annuity, or you can choose an annuity

     that is indexed to the market and can provide market gains without the risk of

     loss.     

Do I have access to my money in an annuity?

     Most annuities come with a free withdrawal provision. Depending on the 

     annuity recommended, you can access the free withdrawal in the first year or

     after the first anniversary of the policy. Most annuities will allow either a 5 or 

     10 percent free withdrawal without any surrender charges. If you choose to 

     exercise the free withdrawal, your account values will be reduced accordingly.

What are surrender charges and how do they work?

     Surrender charges are only incurred if you withdraw more than the free 

     withdrawal allowed, or if you surrender the policy in full during the surrender

     period which is usually the length of the contract. Each policy is different, 

     therefore, the percentages will vary. If we make a recommendation to you, 

     every aspect of the policy will be disclosed and discussed including surrender

     charges.

What is indexing and how does it work?

     Indexing, as it pertains to an annuity, is when you deposit your money into an 

     account that is linked to a certain indices such as the S&P 500. Your money is

     not actually in the market, but tied to the chosen indices. Depending on your 

     chosen indexing method, when a positive gain is earned in a given time frame,

     your account is credited with interest. Because your money is not actually in 

     the market, if there is a downturn, you don't participate in the downturn. You 

     may have a zero year, but you will not lose any of your principal.

Are there any fees with the annuities you sell?

     The only fee you might have would be associated with an income rider. Some 

     income riders are built into the policy and don't have a fee. If a policy is 

     recommended to you that does have a fee, it will be disclosed. Income rider 

     fees vary from policy to policy and can range from .05% to 1.05%.

What is an income rider and how does it work?

     When the time comes for you to exercise the income rider attached to your 

     policy, the amount paid will be based on your age at the time you turn it on,

     and the payout percentage offered by the policy. For example, if you exercise

     the income option at age 65, the payout percentage might be around 5% of the 

     income account value. Some policies are designed to pay you immediately,

     and others you may have to wait a period of time. Each circumstance is

     different, so we take into careful consideration your needs as to which policy

     will best suit you.

What is the difference between the accumulation account value and the income account value?

     The accumulation account value is your true walk away value inside the policy.

     If you should ever choose to cancel your policy within the surrender charge 

     period, the accumulation value is the value you will recieve minus any 

     surrender charges if applicable. The income account value is the value that 

     your income payment will be based on. This value is only accisible to you

     through an income stream. There are some policies that allow the income

     value to pass to beneficiaries if it is taken over a period of usually 5 years.

Is there a bonus offered with the annuities you sell?

     There are many annuities that offer some type of bonus. The bonus could be

     credited to either the accumulation value, the income value, or both. Bonuses

     vary depending on the policy and can range from 1% up to as high as 30%. 

     In most cases, high bonuses are credited to the income account to help boost 

     the starting income payout. Bonuses can be a great help to offest losses 

     incurred due to market downturns.

How does the Required Minimum Distribution (RMD) work?

     The Required Minimum Distribution (RMD) is a cycling of your qualified

     account through the tax system starting at 70 1/2. This is a mandatory 

     process that has with it a stiff penalty if you don't take it. The penalty is 50% of

     the amount you should have taken out for the given year. The best way to take

     your RMD is through an income stream provided by an annuity. 

Is an annuity right for me?

     This question can only be answered through a careful examination of your 

     overall financial situation. If you are wanting growth, growth followed

     by income, or a safe alternative to growth without risk of loss, then an annuity

     might be the right fit for you. 

For General Inquiries:

info1@provisionmanagers.com

 

 You can also use our

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Keep It Simple

Life is full of surprises. We try to be prepared for them. Rely on our experience to provide you with sound financial advice that won't leave you scratching your head wondering which direction to go. We'll explain your options in uncomplicated terms.

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