Independent Review of the Delaware Life Pinnacle MYGA 10-Year Annuity
What’s Covered in this Review?
In today’s review, I’ll be covering the following information on the Delaware Life Pinnacle MYGA (Multi-Year Guaranteed) 10-Year Annuity:
- 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 have a steady, guaranteed income in retirement, then having a product like the Delaware Life Pinnacle MYGA 10 annuity could be a good option for you. That’s because this particular annuity can offer you a simple, yet guaranteed way of building your retirement assets without risk to your principal.
However, before you commit to purchasing this – or any – annuity, it is important that you have a good understanding of just exactly how it works, and how it may – or may not – work with your specific short- and long-term financial goals.
Throughout the past decade or so, due in large part to the concern for running out of retirement income, annuities have become much more popular. One reason for this is because the lifetime income option on an annuity can provide you with a guaranteed income stream for the remainder of your lifetime – regardless of how long you live.
MYGA, or Multi-Year Guarantee Annuities, can also offer a guaranteed rate for a certain amount of time during the annuity’s accumulation period (the time before you convert the funds to income) – and, your money in an annuity can grow and compound tax-deferred.
Unfortunately, even though annuities can provide a lot of great benefits, these products can be very confusing – and there are some areas of an annuity’s “fine print” that could be considered drawbacks. So, it is important that prior to committing what could be a large sum of money to an annuity, you do some additional research so that you’ll know exactly what it is that you’re getting into.
That’s where we come in.
Annuity and Retirement Income Planning Information You Can Trust
If this is your first visit to our website, then please allow us to officially welcome you here to AnnuityGator.com. We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews.
We have been at this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online.
Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows.
If you’ve spent any time online looking for information on annuities, it is possible that you have come across some highly conflicting details about these financial vehicles. This isn’t really all that surprising, though, as there are a lot of annuities out there today, and everybody seems to have a differing opinion about them.
You may also have recently attended a seminar about annuities, where the presenter – in return for a free dinner or lunch – had you sit through their talk about the in’s and out’s of the Delaware Life Pinnacle MYGA 10 Annuity, or some other similar annuity. It could even have been your attendance at that event that has ultimately led you here to our site, in search of additional information.
While doing your online annuity research, you have probably stumbled upon some of the other sites that discuss annuities online. While these may initially seem informative, many of these websites are actually just trying to lure people in – in order to collect your contact information – by making some pretty bold claims, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
Unfortunately, as enticing these claims might sound, it is absolutely essential that you first verify their validity before you move forward with a long-term financial commitment, just like you would likely do before purchasing any other type of “high ticket” item.
If you are in fact seeking more information on the Delaware Life Pinnacle MYGA 10 annuity, you are definitely in the right place. In fact, we dare say that our Annuity Gator website is the only place online where you will be able to obtain all of the pertinent details that you’ll need for making a well-informed decision about this product.
We do want to warn you, though, that in addition to the nice, rosy details about the advantages this annuity offers, we will also be giving you information on what could be considered drawbacks. That’s because we feel that the only true way to weigh the pros and cons is to have the good, the bad, and yes, even the ugly details.
In order to be perfectly clear up-front here, though, we also want to say that we believe that annuities can provide people with some really great benefits – provided that they fit in with your overall financial plans and goals. With that being said, this review of the Delaware Life Pinnacle MYGA 10 Annuity is here to offer you what you need to know.
So, if you’re ready to get started, let’s dive in!
Delaware Life Pinnacle MYGA 10 Annuity at a Glance
|Product Name||Pinnacle MYGA 10|
|Issuer||Delaware Life Insurance Company|
|Type of Product||Multi-Year Guaranteed Annuity|
|A.M. Best Rating||A- (Excellent)|
|Phone Number||(877) 253-2323|
Opening Thoughts on the Delaware Life Pinnacle MYGA 10 Annuity Product
Delaware Life Insurance Company is known for its annuity and life insurance coverage offerings. As of March 2017, this company managed in excess of 340,000 in-force annuity and life insurance policies.
This represents nearly $38 billion in assets under management for the company, as well as more than $13 billion of invested assets.
Delaware Life has more than 40 years of experience in the insurance and annuity arena, and it offers a long list of products that can help its customers to grow and protect wealth. Considered financially stable, the company has an A- (Excellent) rating from A.M. Best Company and a rating of BBB+ (Stable) from Standard & Poor’s.
Over the past several years, annuities have become a very popular financial product – particularly for retirees and those who are approaching retirement. One of the biggest reasons for this is because an annuity will allow your money to grow tax-deferred, and it can also provide you with a lifetime stream of income that you literally cannot outlive.
Yet, even though this might sound like a 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 Insurance Company 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 10 Annuity
Delaware Life describes the Pinnacle MYGA annuity as a way to build your retirement assets without the principal risk that is typically associated with stocks, bonds, or mutual funds.
The Pinnacle MYGA annuity offers the following key benefits:
- Guaranteed Interest Rates – This single premium deferred annuity earns a fixed rate of interest for ten years – and these funds will grow tax-deferred, meaning that no tax is due on the gain until the time of withdrawal.
- Protection of Principal – The entire amount that is deposited goes to work right away, earning a guaranteed rate for a full ten years – regardless of what occurs in the stock market or with interest rates.
- Lifetime Income – At the end of the initial guarantee period, the funds can be withdrawn from the annuity, without incurring surrender charges. Or, the contract may instead be renewed with a new guarantee period.
The annuity has some other features, as well, such as a death benefit that is paid out to a named beneficiary upon the owner’s death. This benefit will be equal to the account value at the time the benefit is paid. If the sole beneficiary is the annuitant’s spouse, then he or she may choose to continue the annuity contract under its current terms or to receive the death benefit proceeds.
How an Insurance or Financial Advisor Might Pitch this Annuity
Because many investors these days are shying away from the volatile stock market, it is likely that if you’ve been presented this particular annuity by a financial or insurance advisor, he or she keyed in on the guaranteed features. And, if your time horizon until retirement is at least ten years, then the guaranteed rate feature on the Pinnacle MYGA 10 could be quite attractive to you.
Plus, many investors today – especially those who are approaching retirement – want to be sure that their money is safe. However, there are some things to be aware of here. First, while your funds in the Delaware Life Pinnacle MYGA 10 annuity can be protected from the ups and downs of the stock market, they can be hindered in other ways.
As an example, due to the low-interest rate environment that we have been in for roughly a decade now, it is likely that the rate of guaranteed interest you receive may not be enough to beat – or even to meet – future inflation.
This being the case, you could end up losing purchasing power in the future, when you need to rely on your investment income the most. This is particularly true if you lock in for a full decade at a low rate. In this regard, you could be giving up the opportunity cost of other, more beneficial investments down the road.
Also, the renewal rates for any subsequent guarantee periods will be based on current interest rates and financial circumstances that are in effect at the time of your renewal – so they could differ from your original rate. Given that, if rates fall further, you may end up with an extremely low rate of return on your money here.
With that in mind, if you are not 100% positive that the Delaware Life Pinnacle MYGA 10 Annuity is right for you, or if you still want to get answers to more of your questions, then please feel free to reach out to us directly here via our secure online contact form.
We agree that annuities can be somewhat confusing – even for well-educated consumers. This doesn’t mean that they are bad products. But it does mean that you want to ensure that much more than the one you choose will be right for you.
So, if you would like to have any additional information, along with the assurance that you know what it really is that you are purchasing, Click Here Now to download our free report on what you need to know prior to purchasing an annuity.
Fees Associated with the Delaware Life Pinnacle MYGA 10 Annuity
Delaware Life Insurance Company pays commissions to the agents who sell their annuities and insurance products. However, this commission – as well as other sales expenses – are paid out from the insurance company’s general assets and revenues, and therefore they are not deducted from the premium that you pay in. But don’t let that fool you into believing that you still won’t be hit with some charges and fees.
For instance, while you are allowed to withdraw, penalty-free, up to 10% of your contract value during the first few years that you own the annuity, if you opt to take out more than that amount within the first ten full years (yes, that’s a whole decade!), you will incur a surrender penalty. The amount that you would be charged is as follows:
If you make any such withdrawals before the time that you turn age 59 1/2, you could also incur an additional 10% “early withdrawal” penalty from the IRS. And, if you withdraw more than the penalty-free amount (which is 10% of the contract’s value during the first ten years), a Market Value Adjustment will also be applied. (This is because Delaware Life Insurance Company may need to liquidate the bonds that it purchased when you make your withdrawal request).
The Annuity Gator’s End Take on the Delaware Life Insurance Company’s Pinnacle MYGA 10 Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Principal protection
- A guaranteed rate of interest (at least for a set period of time – in this case, ten years)
- Guaranteed lifetime income in the future
Where it works worst:
Alternatively, the Pinnacle MYGA 10 Annuity from Delaware Life may not fare so well for those who:
- Want the opportunity for a higher rate of return on their money
- Want to access more than just 10% of the contract value within the first ten full years
- Do not plan on using the lifetime income feature
There are numerous criteria that you need to consider when you’re thinking about the purchase of an annuity, including how the annuity’s return is determined, how safe your principal will be, how the income from the annuity pays out (and how long you want or need it to), and whether there are any additional features available (as well as the possible added cost of those features).
If you’ve been considering a Multi-Year Guarantee Annuity such as the Delaware Life Pinnacle MYGA 10, then the good news is that your principal will be protected – regardless of what occurs in the market. In addition, if you choose the lifetime income option, you can also be sure to count on a stream of income in retirement that will last for the remainder of your lifetime, regardless of how long that may be.
However, even so, the Pinnacle MYGA 10 annuity from Delaware Life Insurance Company could still fall somewhat short – and there may very well be a better alternative out there for you. This is especially true if you are looking for an opportunity to attain a higher return.
In reality, the only way to truly know how this annuity may perform, based on your particular situation is to have it tested. We can provide this for you via our annuity calculator – and we can give you, for free, the spreadsheet that outlines the results. If you are interested in learning more about how the Delaware Life Pinnacle MYGA 10 annuity could perform for you, then just Contact Us through our secure online form here.
Have Any Additional Questions? Did You Happen to See Any Mistakes in this Review?
We realize that this annuity review was a bit on the long side. So for that, we thank you for staying with us thus far. Our feeling is, though, that we would much rather provide you with “too much” detail on complex products like annuities as versus not enough.
Therefore, if you found that this annuity review was helpful for you, then please feel free to forward it on to anyone else that you think may benefit from it. Alternatively, if this review led you to have even more questions about the product, then please let us know that, too.
Are there any other annuities you would like to see reviewed?
There are lots of annuities available in the marketplace today. So, if you would like to see a particular annuity reviewed that is not already in our annuity review database, then just simply let us know the name of the annuity (or annuities, if you would like to see more than one), and our team of highly trained annuity “geeks” will get on the case. So, be sure to check back soon for the new reviews.
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