Delaware Life Growth Pathway Fixed Indexed Annuity In-depth Review

The Delaware Life Growth Pathway is a Fixed Indexed Annuity (FIA) plan that offers the annuitant (annuity investor) an opportunity to earn a market index-linked return without having to incur the risk of market downside. This is a suitable plan for people who are looking for a plain vanilla fixed indexed annuity (with no optional paid riders such as enhanced lifetime income, enhanced death benefit, etc.) and aim to grow and protect their retirement savings.

Let’s have a look at the high-level fine print of the Delaware Life Growth Pathway Fixed Indexed Annuity, and then we will discuss each point in detail.

The Growth Pathway Fixed Indexed Annuity is almost identical for both policy tenures, except for the crediting strategies and surrender charge schedule. For ease of discussion and clarity, we will focus on the Growth Pathway Fixed Indexed Annuity 5 (unless otherwise specified) for the remainder of the article.

How does the Delaware Life Growth Pathway Fixed Indexed Annuity policy work?

Any annuitant (maximum age at the time of policy issue: 85) can purchase the Delaware Life Growth Pathway Fixed Indexed Annuity with a minimum initial purchase amount of $10,000, 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, there are various events that may trigger earnings credit: On free withdrawals, for a long-term care event or terminal illness or injury event, or when a death benefit is payable.

At the time of this review (Nov 2025), this was the published figure. For current rates, see Current Rates ↓.

The Delaware Life Growth Pathway Fixed Indexed Annuity offers the annuitant to choose from one or more of the five indexes (S&P 500 Index, Invesco QQQ ETF, First Trust Capital Strength Barclays 10% Index, Janus Henderson Adaptive Market Leaders U.S. Index, and Franklin SG Select Index) to determine their earnings crediting formula. The S&P 500 index has 5 crediting strategies, and the other four indexes have one strategy each. The plan also offers a fixed-rate guaranteed interest strategy to choose from, making a total of 10 strategy options. We will discuss each available index briefly:

1. S&P 500 Index

The S&P 500 index is one of the most popular and oldest indexes in the world. It tracks 500 large-cap publicly traded stocks listed in the United States. It is a reliable index and has often succeeded in the test of time. It is very important to note that, similar to most other annuities, the Delaware Life Growth Pathway Fixed Indexed Annuity offers the S&P 500 index with cap rates, participation rates, and performance-triggers in place, meaning that your interest-earning capacity is capped. These rates change frequently; I will discuss the rates in detail shortly.2. First Trust Capital Strength Barclays 10% IndexThe 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.3. Franklin SG Select IndexThe 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.4. Invesco QQQ ETFThe Invesco QQQ ETF, also known as the Invesco QQQ Trust, is a prominent exchange-traded fund (ETF) that tracks the Nasdaq-100 Index. This index comprises 100 of the largest non-financial companies listed on the Nasdaq Stock Market, making the ETF a popular choice for investors seeking exposure to leading technology and innovative companies. Launched in March 1999, the Invesco QQQ ETF has consistently outperformed broader market indices such as the S&P 500, largely due to its focus on high-growth sectors like technology, consumer discretionary, and healthcare. Invesco QQQ is renowned for its high liquidity and is one of the most actively traded ETFs in the United States.5. Janus Henderson Adaptive Market Leaders U.S. IndexThe Janus Henderson Adaptive Market Leaders U.S. Index is a next-generation balanced strategy that dynamically adjusts its asset allocation across U.S. equities, corporate bonds, and treasuries. By utilizing options price information from global markets, the index aims to maximize expected compounded returns while setting strict parameters to minimize exposure to potential market declines. With an all-cap blend strategy, the index seeks to increase exposure to upside risk while carefully managing downside risks, making it a versatile option for investors focused on the U.S. market.

It is very important to note that the Growth Pathway 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 shortly.

Note: In addition to allocating the funds in the following indexes, the annuitant also has the option to allocate funds at a fixed interest. These Fixed Rates change from time to time. The 1st-year fixed rate for the 5-year withdrawal charge period, at the time of writing this article, was 4.55% for the $100,000 or over band.

At the time of this review (Nov 2025), this was the published figure. For current rates, see Current Rates ↓.

The earnings crediting formula

The earnings crediting formula is the most important part of this annuity discussion. It is important to know that we don’t simply get the index return credited to our annuity. There are a few rates, caps, and triggers that the company has in place that affect our earnings. These rates tend to change over time, and the updated rates can always be checked on the company’s website.

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

From the above rate chart, you will notice that there are 10 interest crediting options (1 fixed and 9 indexed). Let’s have a look at different terms that are used by the company in the Growth Pathway FIA chart rate:

1. Participation Rate (PR): The participation rate describes the annuitant’s participation percentage in a 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%.
2. Cap Rates: 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.
3. 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 7.50% (for premium > $25,000). 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 will be 7.50% irrespective of the S&P 500's actual return.
4. Fixed Account Rate: If you opt for a fixed account rate, you simply earn the fixed rate for a particular period specified by the company before your policy begins. These rates usually tend to be 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 4.55% (for premiums > $100,000).
5. Bailout Provision: For the S&P 500 1-year point-to-point strategy with cap, if the company lowers any rate below the Bailout Cap rate, you’ll have full access to withdraw your annuity’s accumulated value - free of any charges or Market Value Adjustments.

At the time of this review (Nov 2025), this was the published figure. For current rates, see Current Rates ↓.

Out of the indexes offered by this plan, the wisest decision would be to choose the S&P 500 and Invesco QQQ-based indexing strategies for their transparency, proven returns, and global importance. All the other indexes have a volatility control mechanism in place, which limits the index's overall return-earning capacity.

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, Janus Henderson, Invesco, Franklin Templeton, and First Trust, along with an allocation to the fixed account.

If I were to choose, I would focus solely on the S&P and Invesco QQQ strategies, and I would opt to pass on the Precision Portfolios. However, if you plan to go for the Precision Portfolio, I would prefer Option #1 because it offers broad-based indexes with a solid performance history, transparency, and strong expected returns.

Accessing your Money

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

At the time of this review (Nov 2025), this was the published figure. For current rates, see Current Rates ↓.

Should your needs change unexpectedly, and you need to take an excess withdrawal (a withdrawal that is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies, 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 Growth Pathway 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. For a quick comparison of surrender charges across different Delaware Life products, you may visit their annuities product page here.

The surrender charge of Delaware Life Growth Pathway 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) Account Value or (ii) Surrender Value

The Growth Pathway is a plain-vanilla annuity that does not offer any optional paid riders. In my opinion, this actually appeals to many people who don’t understand or do not want to dive deep into the complex methodologies the riders often come up with. However, as with most annuities, the Growth Pathway has free in-built nursing home and terminal illness waivers.

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.

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 newer player, but it is rapidly growing and making its name 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 managed to maintain decent ratings for many years. It is considered to be strong and stable financially. 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.

People are living longer, which means retirement savings may need to last longer too. A good annuity fit should protect principal, offer a reasonable path for growth, and make income options clear without hiding the trade-offs.retirement.

The Delaware Life Growth Pathway FIA is a decent annuity that helps you grow your retirement account with much less risk. Through its higher caps and performance-trigger rates, It offers faster growth with principal protection. The product’s plain vanilla nature (with no optional paid riders) might also appeal to people who don’t like to deep-dive into the complex methodologies associated often associated with the riders. If you are considering buying a Fixed Indexed Annuity that is purely growth-and-safety oriented, the Growth Pathway Fixed Indexed Annuity may be a decent product to look after.