Our Professional Opinion on the Delaware Life Pinnacle Plus MYGA
Under normal circumstances, Pinnacle Plus would be a MYGA we would consider when its guaranteed rate is competitive. Right now, however, we recommend looking at another A- or better-rated insurance company until there is more clarity around the recent developments involving Delaware Life.
Pinnacle Plus itself is a straightforward MYGA. It is available in 3-, 5-, 7-, and 10-year guarantee periods; the selected rate is locked for the full term, and the contract provides annual access after the first contract year along with nursing-home and terminal-illness waivers.
We are also in a high-interest-rate environment. Normally, that makes the longer Pinnacle Plus terms attractive for someone who can leave the money untouched and wants to reduce reinvestment risk. A competitive 7- or 10-year MYGA can be a good way to lock today’s rate instead of hoping similar rates are still available several years from now.
Our hesitation has nothing to do with the basic MYGA design. Delaware Life disclosed that a material portion of private-credit investments had to be reclassified from unaffiliated to affiliated after the company received a federal grand-jury subpoena and conducted an internal investigation. The SEC is also conducting a parallel investigation.
In addition, AM Best affirmed Delaware Life at A- but revised its outlook to negative. Delaware Life also reports negative outlooks or watch status from other major rating agencies and has announced a plan to reduce affiliated investments and strengthen its related-party reporting, due-diligence, and investment-governance controls.
We are not saying Delaware Life is insolvent or that existing Pinnacle Plus contracts should be surrendered. The company remains rated A- by AM Best, which technically meets our minimum standard. But when we are placing new retirement money, there is no reason to volunteer for additional uncertainty when other A- or better-rated insurers are offering competitive MYGA rates.
For that reason, we are currently monitoring the situation rather than recommending new Pinnacle Plus purchases. If the investigations are resolved, the negative outlooks improve, and the company’s affiliated-investment remediation progresses as expected, we can reevaluate the product.
The contract itself has several features we like. After the first contract year, the owner can generally withdraw up to 10% of the prior anniversary value, or the contract-specific RMD if greater, without a surrender charge or MVA. The death benefit is based on the applicable account or surrender value, and health-related waivers can provide additional access after the waiting period.
The main contract drawbacks are the lack of normal first-year liquidity, the Market Value Adjustment on excess withdrawals, and the fact that longer terms require a real commitment. Those are normal MYGA tradeoffs and would not prevent us from recommending the product if the company situation were clearer.
Our bottom line: Pinnacle Plus is a solid MYGA design, but we would currently use another A- or better-rated insurer until there is more clarity around Delaware Life. There are simply too many strong MYGA companies available to take unnecessary company-specific uncertainty with new money.
Compare Pinnacle Plus with the current fixed annuity rates from other A- or better-rated insurers before purchasing.
What We Like
- Four Guarantee Periods: 3-, 5-, 7-, and 10-year terms provide plenty of flexibility for matching the rate lock to a retirement timeline.
- Full-Term Fixed Rate: The selected interest rate is locked for the entire guarantee period.
- Longer-Term Rate Locks: The 7- and 10-year terms can reduce reinvestment risk while interest rates remain relatively high.
- Annual Access After Year One: The contract generally allows up to 10% of the prior anniversary value, or the applicable RMD if greater, without normal surrender charges or an MVA.
- Systematic Withdrawals: Income can generally be scheduled monthly, quarterly, semiannually, or annually.
- Health-Related Waivers: Qualifying nursing-home, hospice, or terminal-illness events can provide additional access after the applicable waiting period.
- Standard Death Benefit: Beneficiaries receive the applicable contract value without the normal MVA at death.
What We Don’t Like
- Current Company Uncertainty: Delaware Life is dealing with federal and SEC investigations tied to the classification and reporting of affiliated investments.
- Negative Rating Outlook: AM Best affirmed the A- rating but revised the outlook to negative.
- No Normal First-Year Liquidity: Standard percentage-based penalty-free access begins after the first contract year, although eligible RMD treatment may differ.
- Market Value Adjustment: Excess withdrawals during the guarantee period can be increased or reduced by the MVA.
- No Reason to Accept Extra Uncertainty: Comparable MYGAs are available from other A- or better-rated insurers without the same current company-specific headlines.
Delaware Life Pinnacle Plus MYGA Review
Overview
The Delaware Life Pinnacle Plus MYGA is a multi-year guaranteed annuity (MYGA) offering fixed interest rates for 3, 5, 7, or 10 years. It’s issued by Delaware Life Insurance Company, an A-rated insurer (AM Best), and designed for conservative savers seeking predictable growth, principal protection, and penalty-free access to funds under certain conditions. The Pinnacle Plus offers standard MYGA features, including tax-deferred growth and limited liquidity. It lacks a lifetime income rider (GLWB), so it’s not intended for retirement income unless annuitized.
Product Type
- Annuity Type: Fixed MYGA (Multi-Year Guaranteed Annuity)
- Issuer: Delaware Life Insurance Company
- AM Best Rating: A (Excellent)
- Best For: Safe accumulation, CD replacement, IRA rollovers
- Income Options: Annuitization only (no income rider available)
Funding Sources
This annuity accepts:
- Non-qualified funds (taxable savings, matured CDs)
- Qualified funds (Traditional IRA, Roth IRA, SEP IRA)
- 1035 Exchanges from other annuities
Minimum premium is $25,000. Maximum is $1 million without prior approval.
Key Features
| Feature | Details |
|---|---|
| Terms Offered | 3, 5, 7, or 10 years |
| Guaranteed Interest Rate | Fixed for entire term |
| Free Withdrawals | After year 1, 10% of prior anniversary value annually |
| RMD Waiver | Full RMDs allowed penalty-free for qualified funds |
| Nursing Home Waiver | Withdrawals allowed penalty-free after one year (owner must be ≤ age 75 at purchase) |
| Terminal Illness Waiver | Withdrawals penalty-free after one year if terminal illness criteria met |
| Systematic Withdrawals | Available monthly, quarterly, semiannually, or annually ($100 minimum) |
| Market Value Adjustment (MVA) | Applies on excess withdrawals unless waived (e.g. death, terminal illness, nursing home) |
| Death Benefit | Greater of account value or surrender value, payable lump sum or spousal continuation |
What Happens After the Term Ends?
At the end of the guarantee period (3–10 years), you have a 30-day window to decide:
- Withdraw your full account value with no penalty.
- Renew into a new term at then-current interest rates.
- Transfer to another annuity via a 1035 exchange.
- Annuitize the contract for fixed periodic payments.
If no action is taken, the contract automatically renews at the new declared rate and a new surrender charge schedule applies. This makes it essential to review your options with a broker before maturity.
Why Comparing Annuities Matters
Many MYGAs look similar but differ in:
- Credited interest rates
- Liquidity features (some allow 10% withdrawals with no rate reduction)
- Post-term flexibility
- Availability of income riders (GLWBs)
You may find other MYGAs with higher rates, stronger liquidity, or death benefit enhancements. Comparing ensures the best outcome for your specific financial goals and timeline.
Pros and Cons
| Pros | Cons |
|---|---|
| A-rated insurer (Delaware Life) | No GLWB or income rider |
| Flexible withdrawal options after year 1 | Interest rate may drop upon automatic renewal |
| Waivers for RMDs, terminal illness, and nursing home stays | Annuitization is the only way to generate lifetime income |
| Systematic withdrawal options | Market value adjustment applies to excess withdrawals |
| Low $25,000 minimum | IRS 10% penalty if withdrawn before age 59½ (qualified funds) |
Who Should Consider This Annuity?
Best for:
- Conservative investors seeking fixed, tax-deferred growth
- CD or bond alternative seekers with IRA rollover money
- People close to retirement who want to defer taxes and preserve principal
- Clients who do not need immediate income or high liquidity
Not ideal for:
- Retirees needing guaranteed lifetime income (no GLWB offered)
- Investors looking for inflation-adjusted or market-linked returns
- Those who anticipate withdrawing more than 10% annually
Final Verdict
Is the Delaware Life Pinnacle Plus MYGA a good annuity? Yes—for safe, tax-deferred growth with modest liquidity. It’s best used by conservative savers looking for stability and predictable interest. However, the current investigation gives us pause.
Next Steps
Let The Annuity Expert Compare MYGA Rates For You. We’ll help you find out how the Pinnacle Plus MYGA compares to other top-rated annuities based on your term preference, liquidity needs, and future income goals. Contact us now for a free MYGA quote customized to your retirement plan.
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