Our Professional Opinion on the Delaware Life TrackGuard+ Annuity
We do not recommend the Delaware Life TrackGuard+ annuity for new accumulation money. It is a large-bonus, ten-year fixed indexed annuity with a steep surrender schedule, a long bonus-recapture period, fee-based enhanced index options, and a fee-based liquidity rider. The product has several useful protections, but the buyer pays for much of that flexibility through charges, restrictions, and weaker transparency.
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, and Fitch maintains an A- rating on Negative Watch. Delaware Life has disclosed affiliated-investment reclassification, internal-control deficiencies, a federal grand jury subpoena, and a parallel SEC investigation. The company has begun remediation and asset exchanges, but we currently recommend another A- or better-rated insurer until there is more clarity.
The premium bonus is the first marketing feature that will get a consumer’s attention, but it is not free money. The bonus is subject to a recapture schedule that can last the entire ten-year surrender period. In many states, the recapture remains at 100% for several years. That means the first-day account value can look impressive while the actual surrender value remains far lower.
The Enhanced Liquidity Rider is genuinely useful for someone who needs irregular withdrawals. It starts with an annual allowance and lets unused capacity accumulate, potentially creating a much larger penalty-free withdrawal later. The problem is the annual fee. A consumer should not have to pay every year for liquidity that could have been built into a cleaner contract.
TrackGuard+ also includes an Enhanced Return of Premium benefit beginning later in the contract and a Premium Guard that supports the account value at the end of the surrender period. Those protections are helpful, but they arrive after the owner has already accepted years of surrender charges, bonus recapture, MVA risk, and annual fees.
We also do not like paying an additional fee for higher index-crediting terms when the future fee and future crediting terms can change after the first term. A zero-interest year can still result in a fee deduction and a lower account value.
The product includes a true S&P 500 option, but the rest of the index lineup is heavily engineered. We would rather use a no-bonus cap-lock FIA with a traditional S&P 500, Nasdaq-100, or Russell 2000 strategy and fewer moving parts.
Bottom line: TrackGuard+ tries to solve accumulation, bonus, liquidity, surrender-value protection, and index enhancement in one contract. The result is expensive and complicated. Combined with Delaware Life’s current company uncertainty, we would use another A- or better-rated insurer.
What We Like
- Large state-dependent premium bonus: The contract begins with a substantial account-value enhancement on eligible first-year premiums.
- True S&P 500 option: The product includes a transparent traditional index strategy.
- One-year crediting terms: Interest is measured annually rather than forcing every allocation into a long index term.
- Enhanced Liquidity Rider: Unused annual withdrawal capacity can accumulate for a larger future penalty-free withdrawal.
- Enhanced Return of Premium: Beginning later in the contract, a full surrender receives at least the applicable percentage of premiums paid, adjusted for withdrawals.
- Rising surrender floor: The Enhanced ROP percentage can exceed 100% in later contract years.
- Premium Guard: At the end of the surrender period, the account value is guaranteed to meet the applicable premium-plus-bonus floor after adjustments.
- First-year premium flexibility: Additional eligible deposits can be made before the first anniversary.
- Nursing-home and terminal-illness waivers: Qualifying events can provide additional access.
- Death benefit: Beneficiaries receive the greater applicable account value or surrender value without normal surrender charges.
What We Don’t Like
- Current Delaware Life uncertainty: The company is A- rated, but all three major rating agencies have negative outlook or watch designations.
- Very long premium-bonus recapture: The unvested bonus can remain fully or partially subject to recapture throughout the surrender period.
- Steep surrender charges: The standard schedule begins with double-digit charges and lasts ten years.
- The Enhanced Liquidity Rider costs extra: The owner pays an annual fee whether or not the accumulated liquidity is ultimately used.
- Enhanced index strategies cost extra: A separate annual fee applies to allocations receiving higher crediting terms.
- Fees can be layered: The contract can charge both the liquidity-rider fee and an enhanced-index fee on their applicable values.
- Future enhanced-index fee rates can change: The initial fee is guaranteed only for the first term under the current design.
- Future crediting terms can change: Higher initial caps or participation rates should not be treated as permanent.
- Most index options are engineered: The lineup relies heavily on volatility-control, futures-based, multi-asset, and Bitcoin-linked indexes.
- Return-of-premium protection is delayed: The Enhanced ROP does not provide full premium access from day one.
- Premium Guard is an end-of-term protection: It does not eliminate early surrender charges, MVA, recapture, or rider fees.
- A zero-interest year can still reduce the account: Rider and enhanced-strategy fees continue even when no index interest is credited.
What Is the Delaware Life TrackGuard+ Annuity?
TrackGuard+ is a modified single-premium fixed indexed annuity designed for accumulation, bonus value, enhanced liquidity, and later surrender-value protection.
The contract protects premium from direct market losses and credits interest through a one-year fixed account or index-linked strategies. It also adds a state-dependent first-year premium bonus.
The owner can add eligible premiums before the first contract anniversary. The bonus, surrender schedule, and recapture provisions vary by state and issue age.
TrackGuard+ Product Details
| Issuing company | Delaware Life Insurance Company |
|---|---|
| Product type | Modified single-premium bonus fixed indexed annuity |
| Issue ages | Generally 18 through 78 |
| Minimum initial premium | $25,000 for qualified and nonqualified money |
| Additional premiums | Accepted before the first contract anniversary, subject to limits |
| Premium bonus | Large state- and age-dependent bonus on eligible first-year premiums |
| Surrender period | Ten years, with state variations |
| Bonus recapture | Applies after applicable excess withdrawals and surrender; waived at death |
| Enhanced Liquidity Rider | Annual withdrawal allowance plus an accumulating reserve for a fee |
| Enhanced Return of Premium | Later-year surrender floor based on premiums adjusted for withdrawals |
| Premium Guard | End-of-surrender-period account-value floor tied to premium and bonus |
| Enhanced index options | Higher crediting terms available for an annual strategy fee |
| Death benefit | Greater of account value or surrender value |
How the Premium Bonus Works
TrackGuard+ credits a substantial premium bonus to eligible money paid during the first contract year. The current bonus varies by state and, in some states, by issue age.
The bonus increases the account value, but an applicable portion can be recaptured after an excess withdrawal or surrender. In the standard schedule, the recapture can remain at 100% for several years before declining.
The bonus should not be treated as spendable cash. The meaningful comparison is the cash surrender value after recapture, surrender charges, MVA, and fees.
A no-bonus FIA can produce more money when it provides better caps, participation rates, liquidity, and renewal protection.
The Enhanced Liquidity Rider
The rider provides an annual free-withdrawal allowance and permits unused capacity to accumulate after the first contract year. The reserve can create a significantly larger penalty-free withdrawal in a later year.
This feature is unique and useful for someone expecting an irregular large expense. However, the rider charges an annual fee during the surrender period. The fee is deducted even when the owner never uses the accumulated reserve.
The correct comparison is not merely “How much can I withdraw?” It is:
- How much annual liquidity is available without paying a rider fee?
- How many years of fees will be paid before the reserve is used?
- Will the withdrawal trigger bonus recapture, an MVA, or other reductions?
- Would keeping a separate emergency account be cheaper?
Compare the rider with annuities that include stronger liquidity without a recurring charge.
Enhanced Return of Premium
Beginning later in the surrender period, TrackGuard+ provides a minimum full-surrender value based on premiums paid and adjusted for withdrawals. The percentage begins at 100% and can rise above 100% in later years.
This is better than having no premium floor, but it is not an immediate return-of-premium guarantee. The owner can still receive less than the original premium during the early years.
The protection also does not reimburse the opportunity cost of weak index credits or annual fees. It creates a surrender-value floor rather than a competitive growth guarantee.
Premium Guard
At the end of the surrender-charge period, Premium Guard guarantees that the account value will be at least the applicable total premium plus premium bonus, adjusted for withdrawals. A credit is applied when the account value falls short.
The feature protects the end-of-term account value from being eroded below that floor by poor credits and fees. It does not provide free access during the ten-year term and does not guarantee a competitive return.
Index Choices and Crediting Strategies
TrackGuard+ includes a one-year fixed account and one-year point-to-point strategies tied to:
- S&P 500: A traditional U.S. large-cap equity index using a cap strategy.
- Nasdaq-100 Volatility Control 12% Index: An engineered index that changes exposure to target volatility.
- BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index: A volatility-controlled equity and Bitcoin-linked strategy.
- Barclays Aries Index: A low-volatility stock and Treasury strategy.
- S&P 500 Dynamic Intraday TCA Index: A futures-based, intraday volatility-control strategy with a transaction-cost adjustment.
The true S&P 500 is the cleanest choice. The other indexes may display high participation rates, but the index methodology can reduce the underlying return before the participation rate is applied.
Enhanced Index Account Fees
The enhanced index accounts charge an annual fee in exchange for higher caps or participation rates. The fee is calculated from the applicable index-account value and deducted at the end of the term.
The initial fee is guaranteed for the first term. A new fee can be declared for later terms. Future caps and participation rates can also change.
We do not like paying a recurring fee when neither the future fee nor the future enhanced crediting term is locked for the full surrender period. A zero-interest year still results in a fee deduction and a lower account value.
Compare TrackGuard+ with cap-lock products that reduce renewal-rate risk, including the Oceanview CapLock FIA and the Sagicor Sage Accumulator.
Surrender Charges and Bonus Recapture
TrackGuard+ uses a ten-year surrender schedule. Standard-state charges begin at a high double-digit percentage and remain substantial for several years. Other states use different schedules.
| Contract Year | Standard Surrender Charge | Standard Bonus Recapture |
|---|---|---|
| 1 | 12% | 100% |
| 2 | 12% | 100% |
| 3 | 12% | 100% |
| 4 | 11% | 100% |
| 5 | 10% | 100% |
| 6 | 9% | 100% |
| 7 | 8% | 80% |
| 8 | 7% | 60% |
| 9 | 6% | 40% |
| 10 | 4% | 20% |
| 11+ | 0% | 0% |
The actual state schedule controls. An excess withdrawal can be affected by a surrender charge, bonus recapture, MVA, and rider fees. That is why the account value shown on the statement can be materially higher than the amount available to leave the contract.
Market Value Adjustment
An MVA applies to applicable withdrawals above the free amount during the surrender period. It can increase or decrease the amount received based on changes in market interest rates.
The MVA is waived at death and under certain contract waivers. It does not replace the surrender charge or bonus recapture; several reductions can apply to the same transaction.
Health Waivers
After the applicable waiting period, qualifying nursing-home confinement or terminal illness can provide access without normal surrender charges. Issue-age and state restrictions apply.
These waivers provide access to your existing contract value. They are not a substitute for long-term care insurance.
Death Benefit and Money Left to Family
Before annuitization, beneficiaries generally receive the greater applicable account value or surrender value without the normal surrender charge. Bonus treatment follows the death-benefit provisions.
The product does not provide a separate enhanced legacy multiplier. Someone whose primary objective is leaving the largest possible benefit should compare annuities with enhanced death benefits.
Fees and the True Cost of TrackGuard+
TrackGuard+ can layer several economic costs:
- The annual Enhanced Liquidity Rider fee.
- The annual Enhanced Index Account fee on applicable allocations.
- Bonus recapture after applicable excess withdrawals or surrender.
- Surrender charges.
- A possible negative MVA.
- Opportunity cost from lower or changing renewal terms.
The two annual fees use different calculation bases, so they should not simply be added and described as one universal contract fee. They can still both reduce the same contract in the same year.
Tax Treatment
Interest in a nonqualified annuity grows tax-deferred and is generally taxed as ordinary income when withdrawn. Early distributions may face an additional federal tax penalty unless an exception applies.
An IRA already provides tax deferral. TrackGuard+ must be justified through principal protection, bonus value, liquidity, surrender protections, and beneficiary provisions. Coordinate qualified money with the household’s IRA and rollover strategy.
Who Should Consider TrackGuard+?
- A buyer who values a large bonus and fully understands the recapture schedule.
- Someone who expects an irregular future withdrawal and can justify paying for the accumulating liquidity reserve.
- A consumer who can leave the money in the contract for the full ten-year surrender period.
- A buyer who values the later Enhanced Return of Premium and end-of-term Premium Guard.
- Someone whose conservative net-value comparison shows a measurable advantage over simpler alternatives.
Who Should Avoid It?
- Someone attracted mainly by the premium bonus.
- A buyer who may need substantial access during the early contract years.
- Someone who does not want to pay annual fees for enhanced liquidity or higher index terms.
- A consumer who wants a traditional-index cap locked for the full surrender period.
- Someone uncomfortable with most of the index menu being engineered.
- A buyer who can obtain a cleaner accumulation FIA from another A- or better-rated insurer.
- Someone who wants immediate return-of-premium protection.
Other Insurance Coverage to Consider
- Long-term care insurance: Provides dedicated benefits beyond nursing-home and terminal-illness withdrawal waivers.
- Life insurance: May provide a more efficient tax-free legacy when family protection is the main objective.
- Guaranteed lifetime-income annuity: Better when the primary problem is creating a contractual retirement paycheck.
Alternatives to Compare
A no-bonus cap-lock FIA: Provides transparent traditional-index growth without bonus recapture and multiple annual rider fees.
A MYGA: Appropriate when the main objective is a guaranteed fixed return for a known period.
A stronger-liquidity annuity: Better when regular or irregular access is needed without paying a long-term rider fee.
A separate emergency account: Keeping liquid money outside the annuity may cost less than paying for enhanced liquidity for ten years.
Review our current fixed indexed annuity choices before purchasing TrackGuard+.
Our Final Recommendation
We recommend skipping Delaware Life TrackGuard+ for new money. The bonus is offset by a long recapture schedule, the surrender charges are steep, the enhanced liquidity and enhanced index options carry annual fees, and the most important protections do not fully arrive until later in the contract. Delaware Life’s current rating outlooks and unresolved investigations create another reason to use a clearer alternative.
Contact The Annuity Expert for free quotes and a no-obligation comparison of TrackGuard+ with no-bonus FIAs, cap-lock annuities, MYGAs, and liquidity-focused products from A- or better-rated insurers. We will compare the surrender value, bonus recapture, annual fees, traditional-index terms, renewal protection, liquidity, return-of-premium provisions, death benefits, insurer ratings, and current outlooks before you buy coverage.
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Frequently Asked Questions
Is the TrackGuard+ bonus free money?
No. The bonus is subject to a long recapture schedule and is funded through the contract’s overall economics, including surrender restrictions and crediting terms.
How does the Enhanced Liquidity Rider work?
The rider provides an annual withdrawal allowance and lets unused capacity accumulate into a reserve for larger future withdrawals. An annual fee applies during the surrender period.
Does TrackGuard+ guarantee return of premium?
Not immediately. The Enhanced Return of Premium begins later in the contract and provides a surrender-value floor based on premium adjusted for prior withdrawals.
What is Premium Guard?
At the end of the surrender period, Premium Guard supports the account value to the applicable premium-plus-bonus floor after adjustments. It does not eliminate early surrender charges or fees.
Do the enhanced index options have a fee?
Yes. The enhanced strategies charge an annual fee for higher crediting terms. The fee can reduce the account even when the index strategy earns no interest.
Does the annuity include the real S&P 500?
Yes. The plain S&P 500 cap strategy is the most transparent index choice. The other strategies are engineered indexes using volatility control, futures, optimization, or Bitcoin-linked exposure.
Why are we not recommending Delaware Life right now?
The company remains A- rated, but negative rating outlooks, affiliated-investment reclassification, internal-control concerns, and unresolved federal investigations create uncertainty that comparable alternatives do not currently have.