Delaware Life TruePath Income Fixed Indexed Annuity In-depth Review

How does the Delaware Life TruePath Income Fixed Indexed Annuity policy work?

An annuitant (maximum age at the time of policy issue: 85) can purchase the Delaware Life TruePath Income Fixed Indexed Annuity with a minimum initial purchase amount of $25,000, and in return, they will earn market index returns (calculated through a formula that we will discuss shortly), credited as per the chosen crediting period. Apart from the regular crediting period, various events may trigger earnings credit, including free withdrawals, long-term care events, terminal illness or injury events, or when a death benefit is payable.

The Delaware Life TruePath Income Fixed Indexed Annuity offers the annuitant to choose from one or more of the six indexes (S&P 500 Index, S&P 500 Dynamic Intraday TCS Index, Nasdaq-100 Intraday Elite 15% Index, First Trust Capital Strength Barclays 10% Index, Goldman Sachs Canopy Index, and Franklin SG Select Index) to determine their earnings crediting formula. The S&P 500 index has 5 crediting strategies, and the other five indexes have one strategy each. The plan also offers a fixed-rate guaranteed interest strategy to choose from, making a total of 9 strategy options. We will discuss each available index briefly:

S&P 500 Index: The S&P 500 Index is a widely recognized benchmark for the U.S. stock market, tracking the performance of 500 large publicly traded companies listed on American stock exchanges. It is a market-capitalization-weighted index, meaning larger companies have a greater impact on its value. The index covers approximately 80% of the total U.S. equity market capitalization and is considered one of the best representations of the overall U.S. stock market and economy.

S&P 500 Dynamic Intraday TCA Index: The S&P 500 Dynamic Intraday TCA Index is a financial index designed to provide exposure to the S&P 500 through the use of E-mini S&P 500 futures. This index employs a dynamic approach, utilizing 13 observation windows throughout the trading day to adapt to changing market conditions. By doing so, it aims to offer a more stable volatility experience for investors. The index combines a trend-following mechanism with the capability to rebalance multiple times during the day, allowing it to respond swiftly to market movements and optimize performance.

Goldman Sachs Canopy Index: The Goldman Sachs Canopy Index is a USD excess return index designed to combine a traditional asset allocation strategy with an alternative investment approach. It aims to diversify returns by providing exposure to two distinct portfolios: (i) A long-only "Core Portfolio" consisting of traditional assets like equities, U.S. Treasury bonds, Treasury Inflation-Protected Securities (TIPS), commodities, and gold. (ii) A long-short "Satellite Portfolio" employing market-neutral strategies. The index adjusts the weights of assets in the Core Portfolio based on market growth and inflation signals, while maintaining fixed weights for the alternative assets in the Satellite Portfolio. It also incorporates a volatility control mechanism targeting 8% volatility. Launched in March, 2024, the index aims to provide exposure to market performance while offering potential diversification benefits through its alternative investment component.

First Trust Capital Strength Barclays 10% Index: The First Trust Capital Strength® Barclays 10% Index aims to provide stable growth with a diversified portfolio that provides exposure to U.S. equities and Treasurys and targets a 10% volatility. The index creates a diversified portfolio by combining U.S. stocks selected based on capital strength methodology with a portfolio of four Barclays U.S. Treasury futures indexes. The Index tries to limit long-term realized volatility to 10% or less, dynamically adjusting the allocation between the underlying traded instruments and cash, which can reduce the overall rate of return compared to indexes without a volatility control mechanism.

Franklin SG Select Index: The Franklin SG Select Index is designed to deliver stable returns by dynamically adjusting its investment strategy across changing market conditions. It offers exposure to top-performing large and mid-cap U.S. stocks selected from Franklin Templeton's mutual fund universe. The index employs a multi-factor investing approach, focusing on value, quality, and momentum to identify stocks with strong growth potential. To manage risk, the index incorporates a volatility control mechanism targeting 5% annual volatility and adjusts its exposure by shorting an ETF tracking the S&P 500 Index. Additionally, it diversifies with 10-year U.S. Treasuries, adjusting bond allocations based on market conditions to further stabilize returns. This approach aims to protect against market downturns but also limits the index upside.

Nasdaq 100 Intraday Elite 15% Index: The Nasdaq-100 Intraday Elite 15% Index is a rules-based strategy that starts with the Nasdaq-100 universe and applies an intraday rebalancing process designed to capture short-term market momentum while managing daily volatility. The index targets a 15% volatility level, meaning it adjusts its exposure throughout the day—scaling up during calmer periods and reducing exposure when markets are more turbulent. Because of this built-in volatility control, the index tends to deliver smoother but more constrained returns compared to the traditional Nasdaq-100.

It is very important to note that, like other Fixed Indexed Annuities, the Delaware Life TruePath Income Fixed Indexed Annuity comes with cap rates, participation rates, performance triggers, etc., for these indexes, meaning that you will be credited only a part of the index return to your annuity. These rates change frequently; I will discuss these rates more briefly.

Note: In addition to allocating funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest rate. These Fixed Rates change from time to time. The first-year fixed rate for the 10-year withdrawal charge period, as of the time of writing this article, was 3.35%.

The earnings crediting formula

The earnings crediting formula is one of the most important parts of this annuity discussion. It is important to know that we don’t simply get the index return credited to our annuity. The company has several rate-limiting mechanisms, including cap rates, participation rates, and triggers, that affect our earnings. These rates are subject to change over time, and the updated rates can be checked with your financial advisor or on the company’s website. 

Let’s have a look at the Delaware Life TruePath Income Fixed Index Annuity rate sheet (as of December 2025) to understand how the earnings are determined.

From the above rate chart, you will notice that there are 9 interest crediting options (1 fixed and 8 indexed). Let’s have a look at different terms that are used by the company in the TruePath Income Fixed Indexed Annuity rate chart:

Cap Rate: This refers to the rate at which your interest-earning capacity is capped. For example, if an index returns 12% but the contract’s cap rate is 6%, the annuitant will be eligible for an interest credit of 6% only. It doesn’t matter how much the index goes above the cap rate; the maximum interest that can be earned is the cap rate.

Participation Rate (PR): The participation rate describes the annuitant’s participation percentage in the return of an index. For example, suppose the participation rate is 150%, and the index returned 4% over the agreed time. In that case, the annuitant will be eligible for 150% of the return, i.e., 6%.

Performance-Triggered Index Option with Declared Rate: A flat or positive index return triggers the declared interest rate to be credited to the contract value. If the index return is negative, no interest is credited, but there will be no loss, and the contract value will remain the same. The declared interest rate is set at contract issue and applies for the entire withdrawal charge period. In this case, the performance-triggered rate for the S&P 500 Index is 5.00%. It means that if the S&P Index doesn’t go negative for a given 1-year period (even if the growth is 0% and not negative), the interest credited to the annuity will be 5.00% irrespective of the S&P 500's actual return.

Point-to-Point with Flex-Lock Participation Rate, Boost, and Knockout: This index strategy adds a Boost Rate to the return of an index at the end of the term if a Knockout has not occurred. If a Knockout has not occurred, the company will compare the index value at the end of the term to its value at the beginning of the term and add a Boost Rate to the percentage change in the index. A Participation Rate is then applied to the boosted index return to determine the amount of interest credited.

A Knockout is an event that cancels an index interest credit and occurs if the index value drops below the Knockout Barrier at any point during the term. If a Knockout occurs, you will not receive an interest credit and may not transfer your index value to another index strategy until the end of the term. For example, If the index value at the beginning of the term is 2000 and the Knockout Rate is 98%, then the Knockout Barrier value would be 1960.

Fixed Account Rate: If you opt for a fixed account rate, you simply earn the fixed rates for a particular period specified by the company before your policy begins. These rates are usually low/at par as compared to other fixed avenues, such as CDs and MYGAs, so you should avoid fixed rates in a general scenario. The 1-year fixed rate on this policy at the time of writing this article was 3.35%.

Amongst these indexes, I prefer the S&P 500 Index with a cap option or performance trigger option. I avoid any S&P 500 strategy with a participation rate because the company offers a very low participation rate for the S&P 500 index. The First Trust Capital Strength Index and Franklin SG Select Index are also good indexing options if you are willing to take on some risk—if the knockout barrier isn’t hit, you get a good participation rate plus an additional boost.

Precision Portfolios

The annuitant can also choose from two model Precision Portfolios, which are designed to offer diversification benefits without the need to select indexing strategies manually. Each portfolio is constructed with set percentage allocations to individual index strategies from providers such as S&P, Nasdaq, Goldman Sachs, First Trust, and Franklin Templeton, along with an allocation to the fixed account.

Accessing your Money

Each year, you are entitled to a 10% free withdrawal of your contract value without incurring any charges, fees, or penalties.

Should your needs change unexpectedly and you need to take an excess withdrawal (a withdrawal that exceeds the free withdrawal amount available in a given contract year), you may be entitled to access additional funds, although certain charges and penalties may apply. Any amount withdrawn in excess of the remaining free withdrawal amount is subject to a Surrender Charge. Below is the Surrender Charge schedule for the TruePath Income Fixed Indexed Annuity.

Market Value Adjustments - In case you need to surrender your policy, a Market Value Adjustment (MVA) will be applied to the portion of the withdrawal or surrender that exceeds the free withdrawal amount during the withdrawal charge period. The surrender charge schedule is different for the different tenures of annuities and also changes for some states.

The surrender charge of Delaware Life TruePath Income Fixed Indexed Annuity is in line with all the other annuity issuers.

Once the surrender charge period ends, you can typically access your full contract value without fees. However, any withdrawal reduces both your contract value and, if applicable, the income base tied to optional riders, which may impact future guaranteed income.

An annuitant can also convert the contract into a stream of guaranteed income, known as annuitization. They can choose from various payout options designed to meet different needs.

Life Only – Provides income for as long as you live.

Joint and Survivor Life – Continues payments over two lifetimes, often used by couples.

Life with Period Certain (up to 30 years) – Pays income for life, but guarantees payments for a minimum period even if death occurs earlier.

Period Certain (up to 30 years) – Provides guaranteed payments for a set number of years, regardless of lifespan.

Single Life or Joint Life with Cash Refund – Ensures that if the annuitant(s) pass away before receiving payments equal to the original premium, the difference is refunded to beneficiaries.

Single Life or Joint Life with Installment Refund – Similar to the cash refund, but any remaining balance is paid out over time in installments.

These options allow flexibility in balancing lifetime income needs with legacy goals, offering a way to customize how and when funds are accessed in retirement.

Death Benefit

Upon the annuitant’s death, the beneficiary will get the greater of (i) the Account Value or (ii) the Surrender Value

Riders

The built-in lifetime income rider option(s) are one of the most important discussions of this annuity review. The Delaware Life TruePath Income Fixed Index Annuity offers a focused set of built-in and optional rider benefits designed to address longevity risk, health-related liquidity needs, and provide a predictable lifetime income. The product is centered around its two Guaranteed Lifetime Withdrawal Benefit (GLWB) riders, which serve as the core value proposition for annuitants seeking lifetime income.

The TruePath Income FIA offers two distinct options for calculating the withdrawal benefit base: the Ready strategy and the Build strategy, both available for an annual cost of 1.20% of the withdrawal benefit base. The Ready strategy is generally appropriate if you intend to begin income sooner, while the Build strategy is designed for those who can defer lifetime income for 10 years. These strategies determine the value used to calculate guaranteed lifetime income. Once the withdrawal benefit base is established, the lifetime income amount is then calculated using either the level-income or increasing-income payout options. 

Ready strategy is structured for those planning to begin income sooner, offering a 25% upfront bonus to the withdrawal benefit base and a 6.75% annual roll-up bonus for up to ten years.

Build strategy caters to individuals with a longer horizon before turning on income, crediting 9.75% compound interest annually for up to 10 years or when you start lifetime income, whichever is first. Waiting a full decade can result in more than 250% increase to your withdrawal benefit base.

Let’s compare the Ready strategy and the Build strategy with an example, and see which strategy suits you best. 

Example Scenario

The following table shows the Withdrawal Base amount for both the Ready Strategy and the Build Strategy, assuming you don’t take any withdrawals for 10 years, and there are no step-ups. 

As seen in the table above, the Ready Strategy produces a higher withdrawal benefit base through the earlier years, outperforming the Build Strategy up to Year 8. However, once you move into Years 9 and 10, the Build Strategy begins to surpass the Ready Strategy and ultimately provides a larger withdrawal base at the end of the 10-year period.  This reflects the structural design of both options: Ready front-loads growth for earlier income, while Build rewards longer deferral through compounding. Therefore, if your income start date is within the first 7–8 years, Ready may be more advantageous. Conversely, if you can defer income for close to a full decade, the Build Strategy can deliver a higher long-term lifetime income potential.

Accessing Lifetime Income

Once your Withdrawal Benefit Base (WBB) has been established through either the Ready or Build strategy, the TruePath Income FIA allows you to convert that base into guaranteed lifetime income. The annual income is calculated by multiplying the Withdrawal Benefit Base by the applicable Lifetime Withdrawal Percentage, which depends on your age at the time you turn income on. After that point, you can choose one of two income distribution strategies:

Level Income Strategy

Rising Income Strategy

The table(s) below show the Lifetime Withdrawal Percentages, updated as of the date of writing this article.

1. Level Income Strategy

Under the Level Income Strategy, the annual withdrawal percentage applied to your WBB is typically higher than under the Rising strategy. The benefit of this approach is predictability: once income begins, the annual dollar payout remains level for life, unless a “step-up” occurs. Step-ups can happen if your account value on a contract anniversary is higher than before income began, which could increase your WBB and future income.

Example: Suppose Diane’s WBB has grown to $173,280 after 5 years. At age 65, she elects to start income and qualifies for a 6.11% Lifetime Withdrawal Percentage. Her annual income is calculated as:

$173,280 × 6.11% = $10,587 per year

Even if her account value later drops due to poor market performance, Diane continues receiving at least $10,587 annually for as long as she lives.

This option is generally a good fit for retirees seeking higher initial income and maximum payout stability.

2. Rising Income Strategy

The Rising Income Strategy allows for smaller initial income but offers the potential for annual increases. Once income starts, your payouts can go up if your account value earns interest in any given year. The strategy relies on index credits, performance multipliers, and step-up adjustments.

Example: Jack’s WBB after 10 years is $268,510. At age 65, when he starts income, his applicable withdrawal percentage is 4.31%. His initial income is:

$268,510 × 4.31% = $11,573 per year

That becomes his guaranteed minimum. Each year, his income is reviewed:

If index returns are positive, his annual payment may increase.

If returns are negative, the payment does not decrease.

In the illustrated performance scenario:

Year 1: Income rises to $11,804

Year 2: Jumps to $12,394

Year 3: Maintains at $12,394

Year 4: Maintains at $12,394

Year 5: Eventually increases further to $13,138

This strategy may appeal to retirees who want income that keeps pace with market performance and inflation pressure over time, even if it means starting at a lower level.

Which Strategy Should You Choose?

The right option depends primarily on your income goals:

Level Income is generally better for retirees who want higher immediate income and predictability.

Rising Income may suit those confident in long-term market performance and interested in inflation-aligned increases.

In many cases, if you intend to turn income on sooner, the Level Income option can maximize your payout. However, if you have several years of index credit potential after income begins, or if preserving long-term purchasing power is a priority, the Rising strategy can provide significant upside.

To summarise, your first decision is how you want to accumulate your Withdrawal Benefit Base (WBB): either through the Ready strategy for earlier income activation, or the Build strategy for higher long-term growth potential. Once your WBB is established and you’re ready to begin withdrawals, the next choice is how you want to receive lifetime income, either through the Level Income option, which provides higher and more predictable initial payments, or the Rising Income option, which starts lower but offers the potential for annual increases based on the chosen indexing strategies' performance.

Also, as with most annuities, the Delaware Life TruePath Income has free in-built nursing home and terminal illness waivers. An additional feature is the Chronic Illness Income Multiplier Benefit, which is discussed below:

Nursing Home Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is confined to a Qualified nursing home for at least 90 consecutive days. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.

Terminal Illness Waiver: After the first contract year, an annuitant can withdraw up to 100% of the contract’s accumulated value if he is diagnosed with a terminal illness with a prognosis of 12 months or less. No withdrawal charge or MVA applies if the owner qualifies for this benefit. Diagnosis must occur after the contract is issued, and written proof with supporting documentation is required from a qualified physician.

Chronic Illness Income Multiplier Benefit: If you are diagnosed with a qualifying illness, the Chronic Illness Income Multiplier benefit will increase your annual withdrawal amount by 200% for up to 5 years for no additional cost,  even if your annuity’s account value goes to zero.

Contract/Administrative Charge

The Delaware Life TruePath Income Fixed Indexed Annuity levies no annual contract or administrative fees. However, it comes with a compulsory paid rider, Guaranteed Lifetime Withdrawal Benefit (GLWB), that, at the time of writing this article, costs 1.20% of the benefit base, deducted from your account value. This rider is discussed in detail in the previous section.

What Makes this Product Stand Out?

The Delaware Life TruePath Fixed Indexed Annuity offers a few features that make a favorable case for this annuity. The ones that I like the most are:

The plan offers the S&P Index with multiple crediting methodologies.

No annual contract, mortality & expense, or administrative fees

The GLWB Rider offers annuitants two income choices depending on when they will need lifetime income withdrawals. If annuitants want income early in their retirement stage, they can opt for the Ready strategy, and if they prefer income later, they can opt for the Build strategy. Additionally, they can opt for Level Income or Increasing Income withdrawal options.

Free Chronic Illness Income Multiplier Benefit

Free  Confinement and Terminal Illness Waiver Benefit: This no-fee rider is automatically included for owners under age 65 and includes both a Qualified Nursing Care and Terminal Illness Benefit.

Multiple Payout Options: Lump sum or Annuitization option with Life Only, Life with Period Certain, Joint and Survivor Life, etc.

What I Don’t Like

This product is a decent product for people looking for growth and safety; still, there are some features that I believe could add more value for the annuitant. Some of the features that I don’t like about the policy are

The built-in GLWB rider comes at an annual cost of 1.20% of the benefit base, which, in my opinion, is on the higher side.

The plan offers lower cap and participation rates on its indexing strategies compared to other Delaware Life Fixed Indexed Annuities. If you are looking for a Delaware annuity that works best for growth and accumulation, check out our reviews for the Delaware Growth Pathway and Delaware Retirement Stages Select Fixed Indexed Annuities.

Company Details

You must always keep in mind that, unlike CDs, annuities are not guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other federal insurance agency. An annuity's "guarantee" is only as strong as the insurance company that issues the annuity, so it is always important to assess the issuing company before buying an annuity.

Delaware Life Insurance Company

Delaware Life Insurance Company was founded in 2013 and is a subsidiary of Group 1001 Insurance Holdings, LLC. Group 1001 is a dynamic network of several insurance businesses. It is a relatively new player, but it is rapidly growing and making a name for itself in the market. In 2025, Delaware Life was top-rated in Barron’s 100 Annuities list. 

It is rated as follows by the rating agencies:

Although the ratings are not the best when we compare them with bigger players, they are good enough for you to consider buying an annuity.

Delaware Life Insurance Company has consistently maintained decent ratings for many years. It is considered to be financially strong and stable. As of June 2025, the company had assets of $56.2 billion, with more than 324,000 active annuity and life insurance policies. 

Going by the operating history, financial numbers, and ratings, we can safely gauge that you can trust your savings with Delaware Life Insurance Company.

Conclusion

With the advancement in healthcare and technology, the average American today is living longer than ever. Therefore, it’s crucial to have a steady stream of income that can grow safely and reliably, providing a guaranteed income during retirement years. This not only helps you mitigate the risk of outliving your income but also ensures that you continue to live a decent life even in your retirement.

The Delaware Life TruePath Income Fixed Indexed Annuity stands out as a well-structured solution for individuals seeking guaranteed retirement income with meaningful flexibility in how that income is built and distributed. With its dual accumulation methods (Ready vs Build), clearly defined lifetime withdrawal percentages, and the choice between Level or Increasing Income payments, the product offers customization that can suit a range of retirement timelines and income needs. However, because its design is centered on lifetime income, it may not be the strongest fit for those focused primarily on maximizing growth. As always, prospective buyers should carefully evaluate which strategy aligns best with their retirement goals, liquidity needs, and planned income start date.

We understand that choosing the right annuity can be a complex decision, influenced by a myriad of factors, including market conditions, individual financial goals, and evolving life circumstances. To better serve you in this critical decision-making process, we regularly conduct in-depth reviews of various annuity products, examining features, costs, and potential benefits. To delve deeper into our extensive reviews, click here.