The Truth About Delaware Life
Delaware Life Insurance Company was founded in 2013 and is a subsidiary of Group 1001, a financial services organization with billions in assets under management. While they are a relatively new player in the insurance space compared to companies with 50+ year histories, they’ve made a name for themselves by specializing exclusively in annuities. This focus has allowed them to build a streamlined product lineup, though it limits their reach to only a narrow segment of insurance consumers.
In the News
Our Professional Opinion
We currently recommend looking at other annuity companies before placing new money with Delaware Life. Some of its annuities have features we like, but the company’s financial reporting concerns and negative rating outlook give us enough reason to wait for more clarity.
Delaware Life Insurance Company has an A− (Excellent) financial strength rating from AM Best. That is an OK rating and meets our minimum standard. However, AM Best changed its outlook from positive to negative after concerns involving affiliated investments and financial reporting. The company has also disclosed federal and SEC investigations and is working on a remediation plan.
A negative outlook is not a downgrade, and the investigations do not mean wrongdoing has been proven or that Delaware Life cannot pay its obligations. Still, when other A− or better-rated insurers offer competitive annuities, we would choose another company for new retirement money while this situation remains unresolved.
There are parts of Delaware Life’s product lineup we like. Its fixed-rate annuities can provide a straightforward rate guarantee, and some income features offer guaranteed growth while you wait to start lifetime withdrawals. Those features would be worth comparing if we were more comfortable with the current company situation.
We are less enthusiastic about several of its accumulation annuities. Some combine large bonuses with long recapture periods, surrender charges, and optional fees. One design even lets you put previously earned interest back at risk in exchange for potentially higher future crediting terms. We do not like that trade for conservative savers. We would rather use a simpler fixed indexed annuity with a competitive cap or participation rate locked on a traditional index.
If you already own a Delaware Life annuity, do not automatically surrender it. Review your surrender charges, any market value adjustment, tax consequences, fees, and existing income or death-benefit guarantees before making a change. Some older contracts contain guarantees that may be difficult to replace.
What We Like
- Fixed-rate choices: Some contracts lock in an interest rate for the selected term.
- Guaranteed income options: Some income riders provide a guaranteed path for increasing future withdrawals.
- Traditional index choices: Some indexed annuities offer an S&P 500 option.
What We Don’t Like
- Negative rating outlook: Delaware Life still meets our A− minimum, but the outlook and ongoing investigations make us cautious about new purchases.
- Complicated accumulation designs: Some contracts ask you to accept more moving parts and restrictions than we think are necessary.
- Bonus recapture: An impressive-looking bonus may not be fully available if you withdraw money or surrender early.
- Fees and surrender charges: Optional benefits and early-withdrawal restrictions can reduce the money available to you.
- Market risk in variable annuities: Account values can fall with the underlying investments, and added guarantees may come with additional fees.
Explore our individual Delaware Life annuity reviews using the links below to see how each contract works and why we currently prefer other insurers for new money.
What Delaware Life Offers
Delaware Life no longer offers life insurance, despite its name. Its current focus is solely on annuity contracts designed for accumulation, income, or a mix of both. Their product suite includes:
- Multi-Year Guaranteed Annuities (MYGAs)
- Offers a fixed interest rate for a set number of years. Products like Apex MYGA provide principal protection and guaranteed growth.
- Fixed Indexed Annuities (FIAs)
- Includes options like Growth Pathway and Target Income 10, which allow for interest growth tied to market indexes without direct market risk. Many include income riders for guaranteed lifetime income.
- Variable Annuities
- Their Accelerator Prime variable annuity offers investment options with market exposure, optional income riders, and benefits for those seeking higher upside potential.
These annuities can typically be funded by non-qualified savings, IRA rollovers, Roth IRAs, 401(k) rollovers, or other qualified retirement plans.
Compare Delaware Life Annuity Income With 25+ Companies
Why You Must Compare Premium Rates, Interest Rates, and Income Payouts
Annuities are not one-size-fits-all. Even if a company has strong financial ratings, the actual value you get from your annuity depends on how much income it pays out, how high the fixed or indexed interest rates are, and how competitive the fees and rider costs are.
- Premium Rates affect your starting balance and any bonuses applied to your contract.
- Interest Rates determine your contract’s growth—whether fixed or tied to a market index.
- Income Payouts vary drastically between carriers and can mean the difference between a secure retirement and running out of money too soon.
Delaware Life has strengths in the accumulation category, but it’s crucial to compare its products side-by-side with other providers who may offer more competitive participation rates, income rider multipliers, or lower internal costs.
Related Resources: Compare live Delaware Life annuity rates alongside 50 other top-rated companies on our master rate table.
Pros and Cons of Delaware Life
- Pros:
- Specializes in annuities with a streamlined focus
- Offers both accumulation and income solutions
- Competitive indexed annuity options with a variety of strategies
- Backed by Group 1001, providing strong financial support
- Cons:
- Not as established as older insurance companies (only since 2013)
- No longer offers life insurance, limiting diversification
- Higher-than-average complaint index (1.57) on annuities compared to the industry average
- Customer service has received mixed reviews, with delays and communication issues reported
Who Should Consider Delaware Life?
- May be right for:
- Individuals between the ages of 45 and 70 looking to accumulate retirement savings with downside protection
- Pre-retirees wanting a guaranteed lifetime income using an income rider
- Savers looking for an alternative to bank CDs or bonds through MYGAs
- May not be right for:
- Anyone seeking a one-stop shop with life insurance, long-term care, and annuities under one roof
- Individuals who expect top-tier customer service and hands-on support
- Clients who qualify for higher payouts or better rider benefits from other carriers
Our Delaware Life Annuity Reviews
- Delaware Life Accelerator Prime Variable Annuity
- Delaware Life DualTrack Income Annuity
- Delaware Life Momentum Growth and Momentum Growth Plus Annuities
- Delaware Life Pinnacle Plus MYGA
- Delaware Life TrackGuard+
Additional Insurance You May Need
Delaware Life only offers annuities, so you’ll need to look elsewhere if you want comprehensive protection. Consider adding the following:
- Life Insurance: Especially for income protection and legacy planning
- Long-Term Care Annuities: These combine annuity growth with extended care benefits in case you need help later in life
- Disability Insurance: Replaces income if you’re still working and become unable to perform your job
Final Thoughts
Delaware Life is a focused, mid-sized insurance company with a strong annuity product offering. However, it may not be the best fit for everyone. You’ll want to compare their income payouts, interest strategies, and rider costs directly with other top providers before locking in your premium. There are no shortcuts—selecting the right annuity requires due diligence.
Speak to a broker to compare Delaware Life annuities against the best options available, or contact The Annuity Expert for free personalized quotes.
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