What’s Covered in this Review?In this review, I’ll be covering the following information on the Delaware Life Fixed Indexed Annuity with GLWB:
- Product type
- Current rates
- Realistic long-term return expectations
- How this annuity is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.If you’ve been in the process of researching annuities so that you can grow your savings and also have a steady, guaranteed income that you can count on in retirement, then it is important that you first have a good understanding of just exactly how these products work, and how they can differ from one another. For example, with the Delaware Life Fixed Indexed Annuity with GLWB, you have the opportunity to obtain a better rate of return as versus a CD or money market, or even over and above a regular fixed annuity. You also have the ability to set up a guaranteed lifetime income that would continue to pay out regardless of how long you live. That can be comforting, as people today are living longer life spans. But prior to running out and committing to this product, it is essential that you know both the benefits and the drawbacks, as well as costs. One big reason for this is because once you have committed to an annuity, it can be quite difficult – and expensive – for you to get out of it. Throughout the past several years or so, and due in large part to the constant volatility of the stock market, fixed index annuities have become much more popular. Because of their growing popularity, the number of financial and insurance reps who are offering them has also increased. But this isn’t necessarily a good thing. As there are so many new annuities – and accompanying riders – that are coming to the marketplace, a large number of them can contain many “moving parts.” This can make these products extremely confusing – even for well-educated consumers and financial pros. With that in mind, unless the advisor that you work with has a key focus on annuity products, it is highly recommended that you do a bit of additional research on your own in order to make sure of just exactly what it is that you’re getting into.
Annuity and Retirement Income Planning Information that You Can TrustIf you have never visited our website before, please allow us to formally welcome you to Annuity Gator. We are a team of annuity experts who have a focus on providing highly comprehensive, yet unbiased, annuity products reviews online. We’ve been at this for quite some time now – far longer than our “copycat” competitors. And, because of this, we have come to be known as a highly trusted source for annuity information. If you’ve been spending time looking for as much information as possible about annuities on the Internet, it is likely that you’ve run across many conflicting details about these particular types of products. This is not at all surprising, though, as there are many annuities out there today – and everyone seems to have a different opinion about them. This includes the plethora of “copycat” websites that are primarily just looking to lure you in and obtain your contact information. Many of them do this by citing some pretty bold claims, such as:
- Guaranteed lifetime income
- Lowest Fees
- Top-Rated Annuity Companies
- Highest Income Payouts
- Fast, Easy Annuity Quotes
Delaware Life Fixed Indexed Annuity with GLWB at a Glance
|Product Name||GLWB (Guaranteed Lifetime Withdrawal Benefit)|
|Issuer||Delaware Life Insurance Company|
|Type of Product||Annuity Income Rider|
|A.M. Best Rating||BBB+ (Stable)|
|Phone Number||(877) 253-2323|
Opening Thoughts on the Delaware Life Fixed Indexed Annuity with GLWBDelaware Life, through its insurance subsidiaries, is a leading provider of life insurance and annuity products in the U.S. As of March 31, 2017, this company had roughly 330,000 in-force annuity and life insurance policies that represented just under $38 billion in assets under management. A relatively new company in the insurance arena, Delaware Life was established in 2013, with the purchase by Delaware Life Holdings, LLC, of domestic U.S. annuity (and certain life insurance businesses) of Sun Life Financial – a company that encompassed more than four decades of experience in the annuity market. Being a privately held company, Delaware Life is able to pursue a long-term strategy, free from the shorter-term distractions – and pressures – that are faced by many publicly traded entities. This insurer is well-capitalized and considered to be financially strong, with a BBB+ rating from S&P, and an A- (Excellent) from A.M. Best. Due to the regular ups and downs of the stock market over the past several years, many investors have become a tad bit leery about going full force into the equities market – at least without some amount of protection to shield them from losses. With that in mind, fixed indexed annuities have become much more sought after by consumers as a way to obtain a guaranteed income for life, as well as an opportunity to keep principal safe, regardless of what the market does. Delaware Life offers several options when it comes to the fixed indexed annuity, including the: In addition to the protection of principal and index-linked growth that are offered by fixed indexed annuities, there are some added benefits that may also be added – including a GLWB, or Guaranteed Lifetime Withdrawal Benefit. This benefit can provide income for one or joint annuitants – even if the account/cash value of the annuity goes to zero. With the GLWB, the benefit base will grow by a guaranteed percentage each year for a certain number of years. This benefit base is the amount on which the lifetime income is calculated. But, while all of this can sound like a rosy, “best of all worlds” scenario, the truth is that if something sounds too good to be true, it probably is – and in this case, you will need a bit more information in order to discover the whole story. This is particularly the case if your decision to move forward could ultimately result in you committing a large chunk of your hard-earned retirement savings.
Before we get into the gritty details, here are some necessary legal disclosures…This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Delaware Life has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.
How Delaware Life Describes their Fixed Indexed Annuities with the GLWB RiderWhile not available on all of Delaware Life’s fixed indexed annuities, the GLWB is an option if you go with the Assured Income 7, an annuity that Delaware Life describes as being both flexible and straightforward, and built for providing guaranteed lifetime income. Here, the annuity’s benefit base – or the amount on which your lifetime income will be based – is guaranteed to grow by a set percentage each contract year, for ten years. With this benefit, you will know exactly what your income will be, so you can more easily plan for your expenses in retirement. If you choose to annuitize – or convert your account over to an income stream – there are several different income options to choose from – which include alternatives for one single income recipient or two. In addition, your income can go up over time in order to help keep pace with the rising cost of the goods and services that you will need to buy in the future. For more information, as well as some of the company’s hypothetical illustrations, you can go HERE.
How an Insurance or Financial Advisor Might Pitch this ProductOver the past several decades, life expectancy has risen a great deal. So, whereas retirees in the past may not have had much time to enjoy post-employment life, today it is not at all uncommon to spend 20 or more years in retirement. But, while that is certainly appealing, living all of those extra years will require you to have money for living expenses. That’s where a guaranteed income stream from an annuity can come it…and it is also likely that if you’ve been presented a Delaware Life annuity with a Guaranteed Lifetime Withdrawal benefit by a financial advisor, he or she focused most of their presentation on the guaranteed lifetime income stream that it can provide. On top of that, there are other nice features that also go hand in hand with fixed indexed annuities, such as the opportunity for index-linked growth when things are moving up, and protection of your principal when the underlying index performs poorly. But just like anything else in life, if something appears too good to be true, then it makes it all the more important that you peek behind the curtain and learn the rest of the story. In this case, for instance, it is important to understand that the benefit base is not a cash or surrender value – and it basically cannot be withdrawn. Nor is your annuity account value gaining the same “attractive” rate that your benefit base is. So, for instance, if the insurance company says that your benefit base will grow by a guaranteed 9% per year, do not expect that the value of your annuity will be returning that same amount. It is here that many buyers of fixed indexed annuities are lured in by a high guaranteed rate, only to find out later – long after they’ve committed a large amount of savings to the product – that it really wasn’t what they had expected it to be.
What About the Fees?There are also fees involved – both with the guaranteed lifetime withdrawal benefit rider and on the annuity itself. The rider fee will be deducted from the annuity’s account value on each contract anniversary. And, as with most other annuities, you could also incur a withdrawal penalty if you withdraw more than 10% of the contract’s value during the surrender period. In this case, the surrender period is seven years. Plus, if you take such withdrawals before the time you turn age 59 1/2, then you could also end up incurring an additional 10% “early withdrawal penalty” from the IRS. For examples of hypothetical illustrations, as well as a hypothetical projection on how the GLWB rider may perform, you can go HERE and HERE.
The Annuity Gator’s End Take on the Delaware Life Fixed Indexed Annuity with GLWBWhere it works the best: This particular product, while not ideal for everyone, could be a viable option for those who:
- Plan to keep the annuity, and not take income from it, for at least ten years
- Will not need the funds they contribute to this annuity for emergencies, at least through the surrender period
- Are seeking guaranteed lifetime income in the future
- Are seeking immediate income (or income within the first few years of purchasing the annuity)
- Do not intend to use the guaranteed lifetime income feature
In SummaryThere are many factors that should be considered when purchasing an annuity. These should include – but they are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs). If you are still leaning towards purchasing the Delaware Life Assured Income 7 annuity with the GLWB, then you can be assured that you can rely on an income stream in the future that will last for as long as you need it to. But even so, this particular annuity may still fall somewhat short, and that being said, there quite frankly could be a better alternative out there for you.
Have Any Additional Questions? Did You Happen to See Any Mistakes in this Review?We certainly realize that this review was a bit on the long side. So for that, we thank you for staying with us. Our feeling is, though, that we would much rather provide you with “too much” detail than not nearly enough. If you found this review to be helpful to you, then please feel free to share it and forward it to anyone else that you think may benefit from it. Alternatively, if this review led you to have even more questions, then please let us know that, too. Are there any other annuity products that you would like to see reviewed? If so, just let us know and we will be happy to get right on it! So, be sure to check back soon to AnnuityGator.com for more reviews. Best, The Annuity Gator P.S. If you would like to read more of our Delaware annuity reviews here’s some links to check out:
- Delaware Life Retirement Stages 7 Fixed Index Annuity
- Delaware Life Pinnacle MYG Annuity 3-Year (MYGA)
- Delaware Life Pinnacle MYGA 10-Year Annuity