Assured Income 7®
Assured Income 7® fixed index annuity is a flexible and straightforward solution that offers a balance of predictable guaranteed income and competitive accumulation.
This chart is a hypothetical representation of fixed index annuity growth under varying market/index conditions and is not meant to represent the performance of any Delaware Life fixed index annuity (FIA) product. It does not reflect any potential withdrawals or associated surrender charges. Interest credited to a FIA is subject to caps, spreads and/or participation rates that affect the proportion of index gains the annuity captures. Account value is the sum of all premiums, plus accumulated interest, and minus the amount of any withdrawals. This is not a guarantee of performance and does not predict performance. Annuities do not participate directly in the stock market or any index. They are insurance products designed to help you prepare for the future.
Like all fixed index annuities (FIAs), Assured Income 7® offers growth potential and principal protection—plus a choice of income options when you’re ready to retire.
But the included Guaranteed Lifetime Withdrawal Benefit (GLWB) rider1 can help your benefit base grow by adding 9% to your benefit base each year (roll-up bonus credit) for the first 10 years (roll-up bonus period). The benefit base is used to calculate your income payments. It has no surrender value and is not available as a lump sum. The fee for this rider may also reduce your annuity’s account value and growth potential over time.
The GLWB guarantees that you (or you and your spouse) will receive retirement income payments for life, even if your annuity’s account value drops to zero.And, because Delaware life Insurance Company understands that life can bring unanticipated changes and your income needs may be different as time progresses, Assured Income 7® has a fee refund feature, included in the cost of the rider. After 10 years (or less if the annuity’s owner dies), 100% of rider fees paid (within the last 10 contract years) are eligible for a refund if: lifetime income is never started, and no withdrawals of any kind (including RMDs) are taken.
This is a hypothetical example for illustrative purposes only and does not reflect earnings in any particular product.
Ways to grow your savings: fixed account option and/or index-linked option(s)
Payments allocated to this option will be credited with a fixed interest rate that is specified on the date the contract is effective. Each year, Delaware Life Insurance Company will declare new interest rates to reflect current conditions, but never less than a minimum guaranteed rate. If you want more certainty about the amount of interest that will be credited to your account value, this may be the choice for you.
S&P 500® Index
For those who want to earn interest based on the performance of a range of large U.S. businesses, this index is widely regarded as a premier benchmark for the domestic stock market. It contains stocks from 500 leading companies in various industries.
Ways to access your income:
Assured Income 7® includes a “bailout” benefit. The bailout provision allows you to withdraw the entire contract value of the annuity, without a surrender charge or market value adjustment, if the renewal cap for the 1-year point-to-point S&P 500® Index falls below the contract's bailout cap. The bailout cap is declared at contract issue and will not change during the life of the contract. No allocation to the S&P 500® Index is required to receive the bailout protection.
The 1-year point-to-point with cap strategy is a crediting method whereby interest is credited annually based on the index return from one point in time to another, up to a maximum called the cap.
After the first contract year, you can withdraw up to the greater of 10% of the last anniversary value of your account or required minimum distributions (RMDs) without surrender charges or market value adjustment (MVA). MVA is an adjustment to the account for changes in the interest rate environment (based on an external, publicly available rate index - Moody’s Bond Indices - Corporate Average) that is applied to withdrawals and surrenders that exceed the 10% free withdrawal amount during the first 7 contract years. MVA is subject to state availability and restrictions.
After the first seven years, you can make withdrawals without surrender charges when you need them, in any amount. However, if you take withdrawals from your contract before then, you could pay a surrender charge for any amount that exceeds the 10% free withdrawal amount. The exceptions to paying the surrender charges for early withdrawal are:
- If you are required to take Required Minimum Distributions (RMDs) starting at age 72
- If, after first contract anniversary, you need to make a one-time withdrawal to pay for nursing home, hospice care or a terminal illness subject to restrictions
- If you qualify for the “bailout” provision that allows for free withdrawals if the S&P 500® Index performs poorly (see bailout endorsement)
Surrender charges are paid on early withdrawals and surrenders based on a gradually decreasing schedule for each guarantee period year. Please see your product brochure or contract for more details about the 7-year surrender charge schedule.
Withdrawals will reduce your future retirement earnings potential.
Guaranteed lifetime withdrawals
Assured Income 7® comes with a Guaranteed Life Income Withdrawal (GLWB) benefit which provides income for the owner and spouse (if elected), even if the account (cash) value should go to zero.
Minimum guaranteed surrender value
If you cash in or “surrender” your contract early (before the contract’s 7-year maturity date) you will be subject to surrender charges based on the 7-year surrender charge schedule. However, your contract’s Minimum Guaranteed Surrender Value (MGSV) will never be less than 87.5% of premiums paid, less any withdrawals and applicable withdrawal assessments, plus interest earned at the nonforfeiture rate stated in the contract. MGSV ends upon the annuity date or contract termination.
When you transition to retirement, Assured Income 7® gives you the flexibility to take income in the way that best suits your needs and goals. You can opt for annuity payments for a specified period or choose from several annuity payment options for you and your spouse (if you purchase a joint contract).
You have the flexibility to reallocate your account at the end of the crediting method term if your needs, goals or risk tolerance shift over time.
Guaranteed death benefit
If you die before you begin receiving annuity income payments, Assured Income 7® guarantees that your beneficiary will receive at least the account value (including all the interest you’ve earned and minus any withdrawals taken) and may avoid probate.3
More about Assured Income 7®
Guaranteed principal to protect your retirement money
Unlike other retirement products, a fixed index annuity is not an investment in individual securities.