Our Professional Opinion on the Delaware Life DualTrack Income Annuity
We like parts of the Delaware Life DualTrack Income design, but we currently recommend looking at another A- or better-rated insurance company until there is more clarity around Delaware Life’s financial reporting, affiliated investments, and ongoing investigations. The product itself has a better income structure than many performance-only annuities because it tracks both a guaranteed roll-up base and a performance-based base, then uses the higher value when lifetime income begins.
Delaware Life is an A- rated annuity company that we are currently monitoring. As of November 2026, AM Best and S&P maintain A- ratings with negative outlooks, while Fitch maintains an A- rating on Negative Watch. Delaware Life has disclosed that a material amount of private-credit investments had to be reclassified as affiliated investments, that it received a federal grand jury subpoena, and that the SEC is conducting a parallel investigation. The company has begun a remediation and asset-exchange plan, but the situation remains unresolved.
None of that means Delaware Life is unable to pay claims or that wrongdoing has been proven. However, an annuity can last for decades. When competing A- or better-rated insurers offer similar guaranteed income without the same current uncertainty, we would use the clearer alternative for new money.
From a product-design standpoint, the dual income paths are the main positive. One base receives a guaranteed compound roll-up for up to ten years. The other receives a multiple of the interest credited to the account before income starts. At the fifth and tenth anniversaries, the lower base is brought up to the higher base. This gives the owner a guaranteed minimum path while preserving the chance for stronger performance-based growth.
The downside is that the guaranteed roll-up is modest, the rider fee is calculated from the Withdrawal Benefit Base rather than just the cash account value, and the contract requires a ten-year surrender commitment. The index menu also consists almost entirely of engineered volatility-control indexes rather than the true S&P 500, Nasdaq-100, or Russell 2000.
DualTrack Income should be judged by the retirement paycheck—not by the size of either benefit base. The Withdrawal Benefit Base is not cash, cannot normally be surrendered, and is not the death benefit. We would only consider this product when its guaranteed single- or joint-life payout is near the top of the market for the same premium, age, state, income start date, and spouse protection.
The chronic illness multiplier is useful but limited. It can temporarily double the annual withdrawal after a qualifying inability to perform activities of daily living, but it lasts for a maximum period and is not a replacement for dedicated long-term care coverage.
Bottom line: DualTrack Income has a thoughtful income-rider design, but the product does not overcome our current concern about placing new long-term retirement money with Delaware Life. We would compare the guaranteed payout with other A- or better-rated insurers and currently choose another company when the income is comparable.
What We Like
- Two income paths: The rider tracks a guaranteed roll-up base and a performance-based base, then uses the higher value when income begins.
- Guaranteed compound roll-up: The income design does not depend entirely on future index performance.
- Performance multiplier: Favorable account interest can improve the performance base before income starts.
- Milestone Stack: On the fifth and tenth anniversaries before income, the lower income base is reset to the higher base.
- Growth can continue after year ten: If income remains deferred, the performance path may continue receiving credits after the guaranteed roll-up period ends.
- Single- and joint-life income: The rider can protect one person or provide lifetime withdrawals based on two covered spouses.
- Income can continue after the cash value reaches zero: Permitted lifetime withdrawals continue when the rider rules are followed.
- Income percentage locks at activation: The lifetime withdrawal percentage is determined at the income start date and does not later decline under the normal rider rules.
- Chronic illness multiplier: A qualifying health event can temporarily double the annual withdrawal without a separate added rider fee.
- First-year liquidity: A portion of total first-year premiums is available without the normal surrender charge or MVA.
- RMD-friendly design: Eligible required minimum distributions can receive favorable withdrawal treatment.
- Nursing-home and terminal-illness waivers: Qualifying events can provide additional access to the contract value.
What We Don’t Like
- Current company uncertainty: Delaware Life remains A- rated, but all three major rating agencies have taken negative outlook or watch actions.
- Ten-year surrender period: The owner makes a long commitment to a company and product that should be monitored closely.
- The guaranteed roll-up is modest: The guaranteed path may produce less income growth than competing riders with stronger contractual roll-ups.
- The fee is based on the benefit base: The annual dollar charge can grow even when the cash account value does not grow at the same pace.
- The maximum rider fee is substantially higher than the starting fee: The issued contract should be reviewed for the company’s future fee-increase rights.
- No true traditional index choices: The listed index menu consists of volatility-controlled, multi-asset, futures-based, or Bitcoin-linked engineered indexes.
- Performance illustrations can overpromise: The performance base depends on future interest credits that may not match hypothetical examples.
- The Withdrawal Benefit Base is not cash: It cannot be taken as a lump sum and is not automatically paid to beneficiaries.
- Excess withdrawals can permanently damage the income guarantee: Taking more than the Annual Withdrawal Amount can reduce future income proportionally or terminate the rider.
- The chronic illness enhancement is temporary: It is not an unlimited long-term care doubler.
- Market Value Adjustment: Excess withdrawals can be reduced when market interest rates have moved against the contract.
- No contractual return of premium: An early full surrender can return less than the original deposit.
What Is the Delaware Life DualTrack Income Annuity?
DualTrack Income is a ten-year fixed indexed annuity with a required guaranteed lifetime withdrawal benefit. It is designed primarily for retirement income rather than maximum account-value accumulation.
The contract protects the annuity value from direct market losses while providing the opportunity to earn interest from a one-year fixed account or index-linked strategies. The owner does not invest directly in an index, does not own the underlying securities, and does not receive index dividends directly.
The required GLWB creates two separate income-accounting paths. These values are tracked independently from the cash account value and are used to calculate the future lifetime withdrawal.
DualTrack Income Product Details
| Issuing company | Delaware Life Insurance Company |
|---|---|
| Product type | Modified single-premium fixed indexed annuity with a required GLWB |
| Issue ages | Generally 45 through 80 |
| Minimum initial premium | $25,000 for qualified and nonqualified money |
| Additional premiums | Accepted before the first contract anniversary, subject to minimum and maximum limits |
| Surrender period | Ten years; California uses a different schedule |
| Market Value Adjustment | Applies to applicable excess withdrawals and surrender; waived at death |
| Guaranteed income roll-up | Compound growth for up to ten years before income begins |
| Performance income credit | A multiple of interest credited to the account before income begins |
| Milestone Stack | Lower income base resets to the higher base at years five and ten before income starts |
| Rider fee | Annual charge based on the Withdrawal Benefit Base and deducted from the account value |
| Chronic illness benefit | Temporary increase in the Annual Withdrawal Amount after qualifying impairment |
| Death benefit | Greater of the applicable account value or surrender value |
How the Two Income Paths Work
The rider begins with two values based on the premium. They do not represent two separate piles of cash. They are accounting values used to determine the future Annual Withdrawal Amount.
The Guaranteed Roll-Up Base
The Roll-Up Withdrawal Base receives a contractual compound credit for up to ten years or until lifetime income starts, whichever occurs first. This base provides the guaranteed minimum path.
We like the certainty, but the rate is not especially strong compared with several competing GLWB annuities. A higher benefit-base rate does not automatically create a higher payment, so the payout factor must still be compared.
The Performance Withdrawal Base
The Performance Withdrawal Base receives a credit equal to a multiple of the interest actually credited to the annuity account before income begins. Strong index results can cause this value to outgrow the guaranteed base.
The problem is that the index interest is not guaranteed. A year with no credited interest produces no performance-base increase from that year’s multiplier. Engineered indexes and future renewal terms make the illustrated result uncertain.
The Milestone Stack
Before income starts, the lower base is reset to the higher base on the fifth and tenth contract anniversaries. After the reset, both paths continue from the same higher starting point.
This is a legitimate improvement over maintaining two completely separate tracks. It allows strong early performance to lift the guaranteed path or allows the guaranteed path to rescue a weaker performance path.
How the Lifetime Income Is Calculated
At the income start date, Delaware Life uses the greater of the two income bases as the Withdrawal Benefit Base. The applicable lifetime withdrawal percentage is then multiplied by that value to determine the annual payment.
The percentage is based on the covered person’s age when income begins. Joint-life income uses the age of the younger covered spouse and starts at a lower percentage because payments may continue over two lifetimes.
Once established, the lifetime withdrawal percentage remains fixed. The annual payment can continue after permitted withdrawals reduce the account value to zero.
The benefit-base value is not the amount you own. It is not available for surrender, does not determine the normal penalty-free withdrawal, and is not the death benefit.
Single-Life and Joint-Life Income
Single-Life Income
Single-life coverage protects one covered person and normally produces a higher annual payment. It can make sense when only one person’s longevity needs to be insured or when the spouse has sufficient independent income.
Joint-Life Income
Joint-life coverage is designed to continue while either covered spouse is alive. The starting payment is lower, but it provides the cleaner solution when both spouses depend on the annuity.
Before purchase, confirm that the surviving spouse receives the full established payment, what ownership and beneficiary designations are required, and what happens after divorce or a change in marital status.
The Chronic Illness Income Multiplier
A qualifying inability to perform at least two of the six activities of daily living can temporarily double the Annual Withdrawal Amount. The benefit can last for up to five years when all eligibility requirements are met.
The feature does not reimburse actual care expenses and does not create a separate pool of care money. It is also subject to contract definitions, certifications, waiting periods, and state availability.
Someone who wants dedicated benefits for home care, assisted living, or nursing-home expenses should compare long-term care insurance and hybrid long-term care coverage.
Index Choices and Crediting Strategies
DualTrack Income uses one-year point-to-point strategies and a one-year fixed account. The listed index choices include:
- Nasdaq-100 Volatility Control 12% Index
- Barclays Aries Index
- S&P 500 Dynamic Intraday TCA Index
- BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index
These are not the plain Nasdaq-100 or S&P 500. Each uses volatility controls, futures, Treasury allocations, cash, optimization rules, transaction-cost adjustments, or cryptocurrency exposure.
We do not love an income annuity whose performance track relies entirely on engineered indexes. High participation rates can look attractive while telling the consumer very little about the index’s likely live return. The guaranteed roll-up helps, but the account-value performance assumptions should remain conservative.
Rider Fees and the Real Cost
The GLWB fee is assessed against the Withdrawal Benefit Base and deducted from the contract value. This matters because the benefit base can grow faster than the cash value.
Over time, the dollar fee may become a larger percentage of the remaining account value. The fee can still be worthwhile when the product generates a top-tier guaranteed payout, but it is difficult to justify when another insurer provides equal or higher income for less.
The rider may be voluntarily terminated after the first anniversary. Removing it eliminates the future income guarantee and should only be considered after reviewing the surrender value, tax consequences, and available replacement options.
Liquidity, Surrender Charges, and the MVA
The standard contract uses a ten-year declining surrender schedule:
| Contract Year | Standard Surrender Charge |
|---|---|
| 1 | 10% |
| 2 | 9% |
| 3 | 8% |
| 4 | 7% |
| 5 | 6% |
| 6 | 5% |
| 7 | 4% |
| 8 | 3% |
| 9 | 2% |
| 10 | 1% |
| 11+ | 0% |
State schedules can differ. The first-year free amount is generally based on first-year premiums. Later, the free amount is generally the greatest applicable contract allowance, the Annual Withdrawal Amount, or an eligible RMD.
Money above the available free amount can be reduced by a surrender charge and an MVA. Excess withdrawals can also reduce the income benefit, making them more damaging than an ordinary withdrawal from an accumulation-only annuity.
Someone who expects substantial irregular withdrawals should compare annuities with stronger liquidity or keep a larger emergency reserve outside the contract.
Death Benefit and Money Left to Family
Before income depletes the account, beneficiaries generally receive the greater applicable account value or surrender value. The Withdrawal Benefit Base is not paid as the death benefit.
Lifetime withdrawals and rider fees reduce the account value over time. If the account reaches zero, the income guarantee can continue, but there may be no remaining cash value for children or other beneficiaries.
Someone whose primary goal is maximizing family value should compare annuities with enhanced death benefits instead of using an income rider as a legacy product.
Tax Treatment
Interest in a nonqualified annuity grows tax-deferred. Withdrawals are generally taxed as ordinary income to the extent of gain. Once the cash value reaches zero and lifetime payments continue, those payments are generally fully taxable.
An IRA already provides tax deferral. Using qualified money in DualTrack Income should be justified by the income guarantee, principal protection, liquidity, and beneficiary provisions—not by additional tax deferral. Coordinate the contract with the household’s broader IRA and rollover strategy.
Who Should Consider DualTrack Income?
- A retiree who wants a GLWB combining a guaranteed roll-up and performance opportunity.
- A buyer whose contract-specific payout is among the highest available from acceptable insurers.
- A married couple seeking joint lifetime income and clear spouse continuation.
- Someone who understands that the Withdrawal Benefit Base is not cash.
- A buyer with enough liquid money outside the annuity to avoid excess withdrawals.
- Someone willing to monitor Delaware Life’s rating outlooks and remediation progress.
Who Should Avoid It?
- A buyer who can obtain comparable guaranteed income from another A- or better-rated insurer without the same current uncertainty.
- Someone who wants a stronger guaranteed roll-up.
- A consumer who prefers true traditional indexes.
- Someone who may need substantial access during the ten-year surrender period.
- A buyer focused primarily on accumulation or legacy rather than lifetime income.
- Someone relying on the chronic illness multiplier as the only long-term care plan.
- A consumer who is uncomfortable with a rider fee based on a growing benefit base.
Other Insurance Coverage to Consider
- Long-term care insurance: Provides dedicated care benefits beyond the temporary chronic illness multiplier.
- Life insurance: Can create a larger income-tax-free legacy when lifetime withdrawals are expected to deplete the annuity value.
- Medicare Supplement coverage: Helps control healthcare costs that an income rider does not directly insure.
Alternatives to Compare
A competing FIA with a stronger guaranteed roll-up: Compare the actual guaranteed payout rather than benefit-base growth alone.
A lower-fee GLWB: A lower rider cost can preserve more account value when the guaranteed income is equal or higher.
A top-rated insurer: An A or A+ company may provide comparable income with less current rating and governance uncertainty.
A separate managed portfolio and income annuity: Separating growth from guaranteed income can make the strategy easier to evaluate.
Review our current fixed indexed annuity choices before purchasing DualTrack Income.
Our Final Recommendation
DualTrack Income has a good income-rider concept, but we currently recommend using another A- or better-rated insurer when the guaranteed payout is comparable. The guaranteed roll-up gives the product more substance than a performance-only rider, yet the long surrender period, engineered index menu, benefit-base fee, and current Delaware Life uncertainty outweigh that advantage for new money.
Contact The Annuity Expert for free quotes and a no-obligation comparison of Delaware Life DualTrack Income with competing GLWB annuities. We will compare guaranteed single- and joint-life income, rider fees, roll-up rates, spouse continuation, excess-withdrawal risk, chronic illness benefits, liquidity, death benefits, insurer ratings, and current outlooks before you buy coverage.
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Frequently Asked Questions
Is DualTrack Income a good annuity?
The product has a good dual-base income design, but we currently prefer another A- or better-rated insurer because Delaware Life’s rating outlooks and investment-governance situation remain under review.
What are the two income tracks?
One base receives a guaranteed compound roll-up for up to ten years. The other receives a multiple of the interest credited to the annuity before income begins. The higher base is used when income starts.
What is the Milestone Stack?
Before income starts, the lower income base is reset to the higher base on the fifth and tenth contract anniversaries. Both paths then continue from the same higher value.
Is the Withdrawal Benefit Base cash?
No. It is an accounting value used to calculate lifetime withdrawals. It cannot normally be surrendered and is not the death benefit.
Does income continue after the account reaches zero?
Yes, when the account is depleted by permitted lifetime withdrawals and the rider rules are followed. Excess withdrawals can reduce or terminate the guarantee.
Does the chronic illness benefit last for life?
No. The enhanced payment is temporary and subject to eligibility requirements. It is not a substitute for long-term care insurance.
Does the product offer the plain S&P 500?
The listed strategies use engineered indexes, including an S&P 500 futures-based volatility-control index. That is not the same as a plain S&P 500 annual point-to-point strategy.
Why are Delaware Life’s ratings being monitored?
The company remains A- rated, but AM Best and S&P have negative outlooks and Fitch has the rating on Negative Watch following affiliated-investment reclassification, internal-control concerns, and ongoing federal investigations.