What Will We Be Covering in this Annuity Review?
In this review, we will be covering the following details on the Delaware Life Pinnacle MYGA annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How it is 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.
Purchasing any type of financial vehicle is a big decision – but this can particularly be the case with annuities. One reason for this is because an annuity can offer you a lifetime stream of income in retirement.
But if you end up choosing an annuity – or for that matter, any financially related product – that really doesn’t fit your particular needs, then it could have a negative impact on your retirement lifestyle…and the way you live for the remainder of your life.
An annuity can also usually require a fairly large chunk of your retirement savings. And, because most annuities have surrender penalties for withdrawing your funds – some for more than ten years – it can cost you dearly if you purchase an annuity and then soon afterward determine that a different product would be better.
Annuities can be somewhat confusing to understand – even for well-educated consumers (as well as for some financial and insurance advisors). As “new and improved” annuities hit the marketplace, there can be a plethora of “small print” that comes along with these vehicles, sort of like an owner’s manual.
But have you ever really sat down and read the owner’s manual for any product, word-for-word, before you purchased it?
If the answer was No – as it is with most people – you’re not alone. The fine print that is associated with most products and services can often seem somewhat daunting. So, most folks just simply move forward with their purchase, hoping that everything will turn out ok.
Is that really how you want to treat your retirement income, though?
This is where the Annuity Gator can come in.
Annuity and Retirement Income Planning Information That You Can Actually Trust
If this is your first visit to our website, then please allow us to personally welcome you here to Annuity Gator. We are a team of experienced annuity professionals who focus on offering comprehensive and unbiased annuity reviews online.
We’ve been at this for quite some time now – and far longer than our competitors. Because of this, we have come to be known as a highly trusted source of annuity information. Over the past several years or so, though, many “copycat” websites have started to spring up, mimicking what we do. While that can be somewhat confusing for consumers, we take it as “imitation being the highest form of flattery.”
As you’ve spent time on the Internet researching annuity information, you may very well have come across some highly conflicting details about these products. But this really isn’t all that surprising.
There are lots and lots of different annuities out there today, and just about anyone and everyone have thoughts about whether they are good, bad, or otherwise. The reality is, though, none of that matters – as long as you know whether or not a particularly annuity is or isn’t right for YOU.
If you want to know more about the Delaware Life Pinnacle MYGA Annuity, you are definitely in the right place. In fact, dare we say that our website is the only place that you’ll be able to secure all of the details you need, which includes the good, the bad, and yes even the ugly. This, however, is the only way to make a good, solid decision about whether or not to purchase it.
In order to be perfectly clear here, we want to state for the record that we at Annuity Gator feel that annuities can be good products for some people – as long as they fit in with your overall financial needs and goals.
So, if you’re ready to start the review, let’s get started!
Delaware Life Pinnacle MYGA Annuity at a Glance
|Product Name||Pinnacle MYGA Annuity
|Issuer||Delaware Life Insurance Company
|Type of Product||Multi-Year Guarantee Annuity
|S&P Rating||BBB+ (Stable)
|Phone Number||(877) 253-2323
Opening Thoughts on the Delaware Life Insurance Company’s Pinnacle MYGA Annuity
Founded in 2013, Delaware Life is a member of Group One Thousand One – an ecosystem of businesses that make insurance more useful, intuitive, and accessible for everyone. (Although the company actually has in excess of 40 years of experience in the annuity market, being initially established with the purchase of Delaware Life Holdings, LLC).
In its short history, Delaware Life has already become a well-established player in the annuity marketplace. It offers its insurance and annuity products to individuals and families, as well as to businesses.
As of December 31, 2017, the company managed approximately 320,000 in-force annuity and life insurance policies, which represent more than $36 billion in assets under management. The company also had more than $14 billion of invested assets at year-end 2017.
Over the past several years, due in large part to the continuous ups and downs of the stock market, the demand for fixed indexed annuities has increased substantially. One key reason for this is because, in addition to keeping principal safe (in any market condition), these financial vehicles can also provide you with the opportunity for ample growth, as well as a set amount of income that could last you for the remainder of your lifetime.
Yet, even though this might sound like a win-win-win situation, the reality is that if something sounds like it may be too good to be true, then it typically is – so you should ideally get as much in-depth detail as possible if you are considering committing to it for the long term.
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 the Pinnacle MYGA Annuity
According to Delaware Life Insurance Company, the Pinnacle MYGA annuity is “a simple, guaranteed way to build your retirement assets without the principal risk typically associated with stocks, bonds, or mutual funds.”
As you approach retirement, one of the words that really stands out is “guarantee.” So, a MYGA, or Multi-Year Guarantee Annuity, can be enticing. That’s because this type of annuity provides you with a fixed rate of interest over a set period of time.
In the case of the Delaware Life Pinnacle MYGA annuity, you have multiple guarantee periods to choose from, which can help you with aligning the product to your specific needs and goals. And, because this is a single premium annuity, the lump sum deposit that you make will go to work for your right away.
Here, you will earn a stated rate of interest, no matter what happens in the stock market. And, as long as you hold on to the annuity for the length of the guarantee period, your principal is protected, and the interest that you earn is guaranteed.
Also, as with other annuity products, the Pinnacle MYGA annuity from Delaware Life Insurance Company offers the ability to accumulate funds tax-deferred. This means that you can earn interest on your deposited principal, as well as interest on the interest you earn, and interest on the money that would otherwise have been paid out in tax. With that in mind, the money you have in this annuity can basically grow and compound exponentially over time.
At the end of your initial guarantee period, you can withdraw your money without incurring a surrender charge. Or, you can instead renew the contract into a new guarantee period. If you’re ready to start receiving an income from the annuity, another option is to convert the annuity into a stream of payments that are guaranteed for life. You can also choose a co-annuitant, such as a spouse, partner, or other individuals, to also receive income payments from the annuity for the remainder of his or her life, too.
The Delaware Life Pinnacle MYGA annuity also has some added features, as well, such as a death benefit. This allows you to designate a named beneficiary (or beneficiaries) who are entitled to receive the remaining funds in the annuity if you pass away before receiving income. This benefit will bypass the probate process.
If you want even more of the in-depth details about how the Pinnacle MYGA annuity from Delaware Life Insurance Company works, you can check out the consumer brochure HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
If you are approaching retirement, then you may be torn between going with financial vehicles that have more risk in order to increase your opportunity for growth, and going with something “safe” so that you don’t lose any of your hard-earned retirement funds.
Because many pre-retirees today are concerned about not losing what they’ve already saved, having certain guarantees can be comforting – so if you have been presented this annuity by an insurance or financial advisor, it is likely that they keyed in on the safety features of this product, along with the ability to earn a higher return if or when rates rise in the near future. So, in many ways, this annuity can allow you to potentially increase the returns on your “safe money.”
But there are some tradeoffs that you need to be mindful of. For example, even though you can earn more than the guaranteed rate on this annuity, the reality is that you still may not be able to beat, or even meet, the rate of inflation.
In the case of the Delaware Life Insurance Company Pinnacle MYGA annuity, you would basically be “locked in” to certain rate guarantee periods. These guarantee periods can last for 3 years, 5 years, 7 years, or even for 10 years. But, while it might be nice knowing how much you’re going to earn in the next few years, what happens if interest rates go up?
In this case, you’d be left behind, earning a lower rate for the remainder of the guarantee period!
Also, once your initial guarantee period ends, if you should decide to lock into a new guarantee period, not only would you be stuck with the given interest rate, but your surrender period would start all over again. Yikes!
Fees Associated with the Pinnacle MYGA Annuity from Delaware Life Insurance Company
And speaking of surrender periods, it is absolutely critical that you know just how long you could be subject to a penalty if you opt to withdraw more than 10% of your contract value within the surrender period “window” of time.
With regard to Multi-Year Guarantee Annuity products, the surrender charge time period will typically match up to the rate guarantee period that is chosen. So, with the Pinnacle MYGA from Delaware Life, you could see a surrender fee for up to 10 years, depending on the rate guarantee period that is chosen. (And, if you renew with another rate guarantee period, your surrender period will start back at square one).
On top of that, if you take withdrawals before you turn age 59 1/2, then you could also incur an additional “early withdrawal” penalty of 10% from the IRS.
The Annuity Gator’s End Take on the Delaware Life Pinnacle Multi-Year Guarantee Annuity
Where this annuity works best:
Just like all offerings, there will usually be some pros and some cons, meaning that the item or service may work well for some, and not-so-well for others. So, if you are still considering the purchase of the Delaware Life Insurance Company’s Pinnacle MYGA annuity, then it could work well for you if you are seeking the following benefits:
Where it works the worst:
On the other hand, this particular annuity may not be right for you if:
- Guaranteed growth (for a variety of different rate periods)
- Protection of principal – no matter what occurs in the stock market
- Lifetime income in retirement
- You want the opportunity to earn an even higher rate of return in order to keep better pace with future inflation
- You want to access more than just 10% of the contract’s value during the surrender period
- You do not plan to use the guaranteed lifetime income feature
When you’re considering how to best position your savings for the future, there are a number of criteria that you should ideally take into account. For instance, with annuities, you’ll need to make sure that the product allows you the opportunity to earn a nice return (at least enough to meet or beat inflation), while also keeping your money safe.
In addition to that, if you’re seeking a future income stream – including one that you cannot outlive, regardless of how long that may be – then you also need to know how the annuity will pay out when you need to convert the funds into ongoing income.
So, if you are still leaning towards the Pinnacle MYGA annuity from Delaware Life Insurance Company, you can be assured that your money will be safe, no matter what goes on with the stock market. You can also count on an ongoing income stream down the road, alleviating the worry about running out of money before “running out of time.”
However, while this product can certainly provide you with some nice benefits, the reality is that this particular product could still fall somewhat short – and quite honestly, there may very well be a better alternative out there for you. This is even truer if you are looking for a way to keep your money safe, while still having the opportunity to earn a higher rate of return.
The only way to truly get an idea of how this annuity may perform – based on your specific situation – is to have it tested. We can do this for you by running the numbers through our annuity calculator, and we can then provide you with a spreadsheet of the results. In order to receive this information, just simply contact us through our secure online form here and let us know.
Have Any Additional Questions? Are There Any Other Annuities You’d Like to Have Reviewed?
While we know that this annuity review was a bit on the long side, we feel that providing “too much” information than not enough. That being said, we appreciate you sticking with us here to the end.
We also realize that, because everyone’s situation is different, there may have been some questions that went unanswered in this review. If this is the case and you still have any additional questions or concerns, please feel free to reach out to us here.
In addition, if you found this annuity review to be helpful, then please forward it on to anyone else that you think may benefit from it, as there is a lot of misconception out there about annuities and how they work.
Is there any other annuity you would like to see reviewed?
If so, we will get right on it!
There is a myriad of annuities that are available in the marketplace today. So, if you don’t currently see an annuity in our online database in AnnuityGator.com that you are considering, then just let us know the name of that annuity (or the names, if there is more than just one), and our team of annuity pros will get to work on it ASAP.
The Annuity Gator
P.S. If you would like to read more of our Delaware annuity reviews here are some links to check out: