How it works
Delaware Life DualTrack Income Fixed Indexed Annuity: product description and policy
The Delaware Life DualTrack Income is a Fixed Indexed Annuity (FIA) that offers annuitants the opportunity to earn a portion of market index-linked returns without exposure to market downside risk. It is designed for individuals seeking a fixed indexed annuity with a strong emphasis on guaranteed lifetime income payments rather than pure accumulation potential.
Let’s have a look at the high-level fine print of the Delaware Life DualTrack Income Fixed Indexed Annuity, and then we will discuss each point in detail.
An annuitant (maximum age at the time of policy issue: 80) can purchase the Delaware Life DualTrack Income Fixed Indexed Annuity with a minimum initial purchase amount of $25,000, and in return, they will earn a portion of market index returns (calculated through a formula that we will discuss shortly), credited to the contract’s account value 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.
For current rates, see Current Rates ↑.
The DualTrack Income FIA includes a built-in Guaranteed Lifetime Withdrawal Benefit (GLWB) rider, which ensures that lifetime income payments will continue for as long as the annuitant lives, even if the account value is depleted. At the time the policy is issued, a separate Withdrawal Benefit Base is also established. This base is used exclusively to calculate future guaranteed lifetime income payments and does not represent cash value that can be withdrawn or surrendered. We will discuss the mechanics, costs, and income calculations of this rider in more detail later in this review.
Each index offers a single crediting strategy, and the plan also includes a fixed-rate guaranteed interest option. In total, the annuity provides four crediting strategy choices. Below, we briefly discuss each available index.
- 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.
- Nasdaq®-100 Volatility Control 12%™ Index: The Nasdaq-100 Volatility Control 12% Index is designed to provide exposure to the Nasdaq-100 while targeting a controlled volatility level of approximately 12%. It dynamically adjusts its allocation between the Nasdaq-100 and a cash component based on observed market volatility. When volatility rises, the index reduces equity exposure to manage risk, and when volatility falls, it increases exposure to capture growth potential. As a result, the index tends to deliver smoother return patterns than the traditional Nasdaq-100, though this volatility management can also limit upside participation during strong equity markets.
- Barclays Aries Index: The Barclays Aries Index is a rules-based, multi-asset index designed to balance growth and risk management across varying market environments. It typically allocates among equities, fixed income, and cash-like instruments using systematic signals that respond to market trends and volatility conditions. By dynamically adjusting exposure, the index seeks to capture upside opportunities while mitigating drawdowns during periods of market stress. This adaptive structure makes the Barclays Aries Index suitable for investors looking for diversified, risk-aware growth rather than pure equity market exposure.
It is very important to note that, like other Fixed Indexed Annuities, the Delaware Life DualTrack Income Fixed Indexed Annuity comes with participation rates 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 are subject to change over time.
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 a rate-limiting mechanism in the form of participation rates 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 different terms that are used by the company in the DualTrack Income Fixed Indexed Annuity rate chart:
Participation Rate
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%.
Participation Rate simulator
Shows how the contract credits a percentage of a positive index return.
5%
Formula
10% x 50% = 5%
This is a one-year teaching example only. Actual contract credits depend on the index, strategy term, allocation, renewal rates, state rules, and carrier contract language.
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.
From a growth perspective, I do not find the rate sheet of the DualTrack Income Fixed Indexed Annuity particularly attractive. All the available indexed options are volatility-controlled indexes, which inherently limit upside potential, and the participation rates offered are relatively modest. As a result, the accumulation potential of this annuity is constrained when compared to other FIAs that offer exposure to broader, non–volatility-controlled indexes with higher crediting potential.
That said, it is important to recognize that the primary value proposition of the DualTrack Income annuity does not lie in accumulation, but rather in its Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. This product is clearly designed as an income-focused solution, where the role of the account value is secondary to the lifetime income guarantees provided through the withdrawal benefit base. In the next section, we will discuss this lifetime income rider in detail and examine how it drives the overall attractiveness of the DualTrack Income annuity.
Rates and costs
Rates, bonus, surrender charges, and costs
Liquidity
How can you access your money?
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 DualTrack 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 DualTrack 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.
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.
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.
Annuitization options
- 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.
Death benefit
Upon the annuitant’s death, the beneficiary will get the greater of (i) the Account Value or (ii) the Surrender Value
Riders and waivers
Riders and waivers
Two Withdrawal Benefit Base Tracks
At issue, a Withdrawal Benefit Base (WBB) is established equal to the initial premium. This base is not a cash value, cannot be withdrawn, and exists solely to calculate lifetime income payments and rider fees.
The WBB grows under two independent tracks until lifetime income begins:
- This provides a predictable floor for future income growth, regardless of market performance.
- Strong index performance can therefore accelerate income growth beyond the guaranteed roll-up.
Lifetime Withdrawal Percentages
Lifetime income payments are calculated by multiplying the final Withdrawal Benefit Base by a pre-determined lifetime withdrawal percentage, which depends on:
- Age at income start
- Single-life vs joint-life election
Once set, the withdrawal percentage never changes, providing long-term income predictability. These withdrawal percentages are determined at the time the annuity is issued and are locked in when lifetime income begins. Below is the GLWB lifetime withdrawal percentage chart for the Delaware Life DualTrack Income Fixed Indexed Annuity.
Milestone Stack Feature (Years 5 and 10)
A key enhancement to the DualTrack design is the Milestone Stack, applied automatically at the end of years 5 and 10, prior to income activation. At each milestone:
- The lower of the two withdrawal bases is reset upward to match the higher base
- Both tracks then continue compounding from the higher value
This mechanism prevents one track from permanently lagging and allows both to benefit from strong performance or guaranteed growth over time.
Let’s understand this rider with the help of an example:
Assume an investor, age 55, deposits $100,000 and plans to start a lifetime income at age 70.
- On Day 1, both withdrawal bases start at $100,000
- Over the first 10 years:
- The Roll-Up Base compounds at 9% annuallyThe Performance Base grows based on credited index interest multiplied by 150%
- At years 5 and 10, the Milestone Stack resets the lower base to the higher value
- At income start (age 70), the higher of the two bases becomes the final Withdrawal Benefit Base
$361,490 × 6.65% = ~$24,039 per year for life
Even if the underlying account value later declines to zero, income payments continue for life, subject to rider terms.
Cost of the Rider
Given the dual-track structure, milestone resets, and income guarantees, this fee is competitive relative to other income-focused FIAs.
Also, as with most annuities, the Delaware Life DualTrack 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.
- 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.
Contract/Administrative Charge
Carrier
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:
| Rating Agency | Rating |
|---|---|
| AM Best | A- |
| S&P | A- |
| Fitch Ratings | A- |
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.
Pros
Dual-Track Lifetime Income Growth
The defining feature of the Delaware Life DualTrack Income FIA is its built-in GLWB rider that tracks two separate withdrawal bases. By crediting the higher of a guaranteed roll-up base or a performance-based base, the product combines income predictability with the opportunity to benefit from market-linked growth before income begins. This structure is more flexible than traditional income riders that rely on only one growth method.
No annual contract, mortality & expense, or administrative fees
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.
Confirm before buying
Limited Accumulation Potential
All available index options are volatility-controlled indexes with relatively modest participation rates. This significantly limits upside potential, especially during strong equity markets, making the product less attractive for accumulation-oriented investors.
Complexity of the Income Mechanics
While the dual-track structure is innovative, it adds complexity. Understanding how the roll-up base, performance base, multipliers, and income election timing interact requires careful review, and the product may not be ideal for annuitants seeking simplicity.
Rider-Driven Value Proposition
The product’s attractiveness is heavily dependent on the income rider. Without a strong need for guaranteed lifetime income, the underlying accumulation features alone may not justify choosing this annuity.
Conclusion
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 DualTrack Income Fixed Indexed Annuity is a purpose-built retirement income product designed for individuals who prioritize guaranteed lifetime income over maximum accumulation. Its dual-track income structure, which credits the higher of a guaranteed roll-up base or a performance-based base, offers a blend of predictability and upside potential before income begins. While the product’s accumulation features are limited by volatility-controlled indexes and modest participation rates, this tradeoff aligns with its income-first design. Overall, DualTrack Income is suited for pre-retirees and retirees seeking a dependable lifetime income stream with built-in guarantees, rather than those focused primarily on growth.