Retirement Chapters 10®

Retirement Chapters 10® fixed index annuity can give you the security of principal protection, upside potential linked to the performance of the index(es) you choose, tax-deferred growth and predictable income.

 
When market index is up, annuity account value can rise. But when market index is down or flat, the annuity does not lose value.

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), Retirement Chapters 10® offers growth potential and principal protection—plus a choice of income options when you’re ready to retire. But with it's optional Stacked Accumulation Income Rider® (STAIR®) benefit, available for an additional fee1, the power of time and compounding interest are on your side to grow your benefit base faster. At the start of your contract, the benefit base is increased by the 5% bonus, and then each year (for up to 15 years), your account will grow by both the interest credit from your allocation(s) PLUS an additional 4% credit added (“stacked”) to your benefit base. And your STAIR® fee is based and charged on your account value, not your benefit base. Your benefit base is left alone to grow until you’re ready to take income payments. STAIR® guarantees that you (or you and your spouse) will get retirement income payments for life, even if the annuity account cash value drops to zero.2

The benefit base is the amount used to calculate your income payments. It is not available as a surrender value or death benefit.

Withdrawals prior to your income start date will impact your future income payments.

How the STAIR® Roll-up Can Help Your Future Income Grow. A $100,000 Initial Premium increases to $105,000 after a 5% Premium Bonus. The 5% premium bonus is subject to a vesting schedule. In year one with a credited hypothetical interest of 4% plus the 4% roll-up, the benefit base would grow to $113,400. The account value would be $108,163. In year two the 4% roll-up plus 0% hypothical interest credit would grow the benefit base to $117,936. The account value would be $107,136. If year three brought a hypothetical interest credit of 5% plus the 4% roll-up, the benefit base would rise to $128,550. The benefit base is credited with the 4% roll-up after any interest credit is added to the account (cash) value. The account value would be $111,423. The Rider cost of 0.95% is deducted from the account value on each contract anniversary.

The hypothetical chart above shows how the benefit base can grow under varying market/index conditions with the purchase of the STAIR® optional guaranteed minimum lifetime withdrawal benefit rider. It does not represent the performance of any Delaware Life Fixed Index Annuity. The interest credit will be subject to caps, spreads and/or participation rates.


Ways to grow your savings: fixed account option and/or index-linked option(s)

Fixed rate

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 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.

First Trust Capital Strength® Barclays 5% Index

The First Trust Capital Strength® Barclays 5% 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 seeks to enhance return and manage risk exposure by adjusting the portfolio’s asset allocation on a monthly basis using techniques from modern portfolio theory. It aims to maintain an annual volatility level at or below 5%, using a procedure called volatility control, to further control risk.

Momentum Asset Allocator 5.5% Volatility Control Index

This index, sponsored by Deutsche Bank and dynamically allocates exposure across equities, gold, interest rates and cash based on their trailing nine month performance, using a volatility control mechanism to help limit overall volatility.

View current fixed index annuity prices See prices

More about Retirement Chapters 10®:

You may elect more than one strategy and on each contract anniversary, you may reallocate your account value among the options available at that time.

 

Ways to access your income:

Guaranteed withdrawals with the optional STAIR® benefit

Available for an additional fee, with the optional Stacked Accumulation Income Rider® (STAIR®) benefit your benefit base (the amount on which your income is based) is credited with the 4% roll-up on top of any interest credited to the account value.

The STAIR® benefit includes the 5% bonus paid on your first-year premiums. This bonus, available to you without any extra fees, continues to earn interest every year and a portion is always available for withdrawal based on the 10-year vesting schedule.2

Free/periodic withdrawals4

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) with no surrender charges or market value adjustment (MVA). MVA is an adjustment to the account for changes in the interest rate credited to the contract since inception that is applied to withdrawals and surrenders that exceed the 10% free withdrawal amount during the first 10 contract years. The exceptions to paying the early withdrawal charges 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

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 10-year surrender charge schedule.

MVA does not apply upon payment of a death benefit. MVA is subject to state availability and restrictions.

Withdrawals will reduce your future retirement earnings potential.

Minimum guaranteed surrender value

If you cash in or “surrender” your contract early (before the contract’s 10-year maturity date) you will be subject to surrender charges based on the 10-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.

Annuity payments

When you transition to retirement, Retirement Chapters 10® 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).

Other features:

Reallocation

You have the flexibility to reallocate your index strategies at the end of the crediting method term if your needs, goals or risk tolerance shift over time. With a range of choices, this also gives you the ability to diversify in changing markets.

Guaranteed death benefit

If you die before you begin receiving annuity income payments, Retirement Chapters 10® 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.5

Index-linked Options Sponsored by a Global Leader

Deutsche Bank

Founded in 1870 and headquartered in Frankfurt am Main, Germany, Deutsche Bank also offers the sales, trading and structuring of a wide range of financial markets’ products including index-based swaps, notes and certificates.

First Trust

At First Trust, their experience, history of innovation and diversity of offerings are all part of their mission and are the only way they know to become a trusted financial professional. Because they consider each financial professional and his or her customer integral to their business, and truly our most valuable investment, they are committed to their best interests. They provide exceptional resources that help financial professional define goals, solve problems and develop long-term strategies to help their clients achieve their dreams and goals. They believe that this kind of leadership will provide the most fundamentally sound investment products and financial professional support available in today’s marketplace.

More about Retirement Chapters 10®

Guaranteed principal to protect your retirement money

Unlike other retirement products, a fixed index annuity is not an investment in individual securities.

Retirement Chapters 10® documentation

Footnotes

1 Rider cost - 0.95% of the year-end account value, deducted annually.

2 You may lose a percentage of the bonus if you make withdrawals beyond your vested amount during this time. Bonus annuities may be subject to higher and longer surrender charge periods, lower caps, higher spreads or other restrictions that are not included on similar annuities without a bonus.

3 “Deutsche Bank” means Deutsche Bank AG and its affiliated companies, as context requires. Deutsche Bank does not render legal or tax advice and information in this communication should not be regarded as such. While volatility control may result in less fluctuation in rates of return as compared to indexes without volatility controls, they may also reduce the overall rate of return as compared to products not subject to volatility controls. Obligations to make payments under the annuity are solely the obligation of Delaware Life and are not the responsibility of Deutsche Bank. The selection of an index as a crediting option under the annuity does not obligate Delaware Life or Deutsche Bank to invest annuity payments in the components of any Index.

4Charges will apply to the excess amount withdrawn in that contract year. Withdrawals may be subject to a market value adjustment, which may decrease or increase your surrender value depending on how interest rates have changed since you first purchased your annuity (not applicable in every state). A market value adjustment (MVA) is an adjustment applied to withdrawals and surrenders in excess of the free annual withdrawal amount during the first 10 contract years. MVA does not apply upon payment of death benefit. State variations may apply. Withdrawals are taxed as ordinary income and you may have to pay a 10% federal tax penalty if you are younger than age 59 ½.

5 The death benefit amount is the greatest of the account value or minimum guaranteed surrender value. The death benefit is subject to adjustments for applicable charges and taxes.

Retirement Chapters 10® Legal Disclosure

All products and/or options may not be available in all states. Annuity contracts contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional can provide you with complete details. For use with policy forms ICC14-DLIC-FIA-10 or DLIC-FIA-10 and rider forms ICC15-DLIC-GLWB-01, ICC15-DLIC-NHW, and ICC15-DLIC-TIW.

Retirement Chapters 10® is currently approved for sale in all states EXCEPT: CT, NM, NY.

Barclays and First Trust®

Neither Barclays Bank PLC ("BB PLC") nor any of its affiliates (collectively ‘Barclays’) is the issuer or producer of Delaware Life Retirement Chapters 10® fixed index annuity and Barclays has no responsibilities, obligations or duties to investors in Delaware Life Retirement Chapters 10®. The First Trust Capital Strength® Barclays 5% Index (the 'Index'), together with any Barclays indices that are components of the Index, is a trademark owned by Barclays and, together with any component indices and index data, is licensed for use by Delaware Life Insurance Company as the issuer or producer of Delaware Life Retirement Chapters 10® fixed index annuity (the 'Issuer').

Barclays’ only relationship with the Issuer in respect of the Index is the licensing of the Index, which is administered, compiled and published by BB PLC in its role as the index sponsor (the ‘Index Sponsor’) without regard to the Issuer or the Delaware Life Retirement Chapters 10® or investors in the Delaware Life Retirement Chapters 10®. Additionally, Delaware Life Insurance Company as issuer or producer of Delaware Life Retirement Chapters 10® may for itself execute transaction(s) with Barclays in or relating to the Index in connection with Delaware Life Retirement Chapters 10®. Investors acquire Delaware Life Retirement Chapters 10® from Delaware Life Insurance Company and investors neither acquire any interest in the Index nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in Delaware Life Retirement Chapters 10®. The Delaware Life Retirement Chapters 10® is not sponsored, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of the Delaware Life Retirement Chapters 10® or use of the Index or any data included therein. Barclays shall not be liable in any way to the Issuer, investors or to other third parties in respect of the use or accuracy of the Index or any data included therein.

Barclays Index Administration (“BINDA”), a distinct function within BB PLC, is responsible for day-to-day governance of BB PLC’s activities as Index Sponsor.

To protect the integrity of Barclays’ indices, BB PLC has in place a control framework designed to identify and remove and/or mitigate (as appropriate) conflicts of interest. Within the control framework, BINDA has the following specific responsibilities:

  • oversight of any third-party index calculation agent;
  • acting as approvals body for index lifecycle events (index launch, change and retirement); and
  • resolving unforeseen index calculation issues where discretion or interpretation may be required (for example: upon the occurrence of market disruption events).

To promote the independence of BINDA, the function is operationally separate from BB PLC’s sales, trading and structuring desks, investment managers, and other business units that have, or may be perceived to have, interests that may conflict with the independence or integrity of Barclays’ indices.

Notwithstanding the foregoing, potential conflicts of interest exist as a consequence of BB PLC providing indices alongside its other businesses. Please note the following in relation to Barclays’ indices:

  • BB PLC may act in multiple capacities with respect to a particular index including, but not limited to, functioning as index sponsor, index administrator, index owner and licensor.
  • Sales, trading or structuring desks in BB PLC may launch products linked to the performance of a index. These products are typically hedged by BB PLC’s trading desks. In hedging an index, a trading desk may purchase or sell constituents of that index. These purchases or sales may affect the prices of the index constituents which could in turn affect the level of that index.
  • BB PLC may establish investment funds that track an index or otherwise use an index for portfolio or asset allocation decisions.

The Index Sponsor is under no obligation to continue the administration, compilation and publication of the Index or the level of the Index. While the Index Sponsor currently employs the methodology ascribed to the Index (and application of such methodology shall be conclusive and binding), no assurance can be given that market, regulatory, juridical, financial, fiscal or other circumstances (including, but not limited to, any changes to or any suspension or termination of or any other events affecting any constituent within the Index) will not arise that would, in the view of the Index Sponsor, necessitate an adjustment, modification or change of such methodology. In certain circumstances, the Index Sponsor may suspend or terminate the Index. The Index Sponsor has appointed a third-party agent (the ‘Index Calculation Agent’) to calculate and maintain the Index. While the Index Sponsor is responsible for the operation of the Index, certain aspects have thus been outsourced to the Index Calculation Agent.

Barclays

a. makes no representation or warranty, express or implied, to the Issuer or any member of the public regarding the advisability of investing in transactions generally or the ability of the Index to track the performance of any market or underlying assets or data; and

b. has no obligation to take the needs of the Issuer into consideration in administering, compiling or publishing the Index.

Barclays has no obligation or liability in connection with administration, marketing or trading of the Delaware Life Retirement Chapters 10®.

The licensing agreement between Delaware Life Insurance Company and BB PLC is solely for the benefit of Delaware Life Insurance Company and Barclays and not for the benefit of the owners of the Delaware Life Retirement Chapters 10®, investors or other third parties.

BARCLAYS DOES NOT GUARANTEE, AND SHALL HAVE NO LIABILITY TO THE PURCHASERS AND TRADERS, AS THE CASE MAY BE, OF THE TRANSACTION OR TO THIRD PARTIES FOR THE QUALITY, ACCURACY AND/OR COMPLETENESS OF THE INDEX / OR ANY DATA INCLUDED THEREIN OR FOR INTERRUPTIONS IN THE DELIVERY OF THE INDEX. BARCLAYS MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE INDEX INCLUDING, WITHOUT LIMITATION, THE INDICES, OR ANY DATA INCLUDED THEREIN. IN NO EVENT SHALL BARCLAYS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES, OR ANY LOST PROFITS, EVEN IF NOTIFIED OF THE POSSIBLITY OF SUCH DAMAGES SAVE TO THE EXTENT THAT SUCH EXCLUSION OF LIABILITY IS PROHIBITED BY LAW.

None of the information supplied by Barclays and used in this publication may be reproduced in any manner without the prior written permission of Barclays Bank PLC. Barclays Bank PLC is registered in England No. 1026167. Registered office 1 Churchill Place London E14 5HP.

Bloomberg Index Services Limited is the official index calculation and maintenance agent of the Index, an index owned and administered by Barclays. Bloomberg Index Services Limited does not guarantee the timeliness, accurateness, or completeness of the Index calculations or any data or information relating to the Index. Bloomberg Index Services Limited makes no warranty, express or implied, as to the Index or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. To the maximum extent allowed by law, Bloomberg Index Services Limited, its affiliates, and all of their respective partners, employees, subcontractors, agents, suppliers and vendors (collectively, the “protected parties”) shall have no liability or responsibility, contingent or otherwise, for any injury or damages, whether caused by the negligence of a protected party or otherwise, arising in connection with the calculation of the Index or any data or values included therein or in connection therewith and shall not be liable for any lost profits, losses, punitive, incidental or consequential damages.

First Trust®, First Trust & Design®, and First Trust Capital Strength® (“Mark”) is a registered trademark of First Trust Portfolios LP (“First Trust”) and has been licensed for use by Delaware Life. Delaware Life Retirement Chapters 10® (“Product”) is not sponsored, endorsed, sold or promoted by First Trust. FIRST TRUST MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY DELAWARE LIFE, A PRODUCT ISSUER, THE INVESTORS IN THE PRODUCT, OWNERS OF THE PRODUCT, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE MARKS OR PRODUCT. FIRST TRUST EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OF THE PRODUCT.

Deutsche Bank

Delaware Life Fixed Index Annuities (the “Products”) are not sponsored, endorsed, managed, sold or promoted by Deutsche Bank AG (DB AG) or any subsidiary or affiliate of DB AG. The Deutsche Bank Indexes are the exclusive property of DB AG. “Deutsche Bank” is a proprietary mark of DB AG and its affiliates that has been licensed for certain uses and purposes to Delaware Life Insurance Company (DLIC). Neither DB AG nor any affiliate of DB AG, nor any other party involved in, or related to, making or compiling the Deutsche Bank Indexes:

  • Is acting in a fiduciary or product management capacity or providing any endorsement of the Products or investment advice of any kind;
  • Has any obligation to take the needs of DLIC, the sponsor of the Products, or its clients into consideration in determining, composing or calculating the Deutsche Bank Indexes;
  • Is responsible for or has participated in the determination of the timing of, prices at, quantities or valuation of the Products;
  • WARRANTS OR GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE DEUTSCHE BANK INDEXES OR ANY DATA INCLUDED THEREIN AND SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN OR THE ADMINISTRATION, MARKETING OR TRADING OF THE PRODUCTS.

The Momentum Asset Allocator 5.5% Volatility Control Index is calculated on an excess return basis reflecting the weighted performance of the Index constituents in excess of the performance of the Deutsche Bank Momentum Money Market Index.

In addition, the Index also reflects the daily deduction of a 0.25% per annum fee. Please see the Disclosure Statements and Annuity Illustrations for more information about the Deutsche Bank Indexes and the Products.

Obligations to make payments under the Products are solely the obligation of Delaware Life Insurance Company and are not the responsibility of DB AG. The selection of one or more of the Deutsche Bank Indexes as a crediting option under the Products does not obligate Delaware Life Insurance Company or DB AG to invest annuity payments in the components of any of the Deutsche Bank Indexes.

Standard & Poor’s®

The Standard & Poor’s 500® (”S&P 500®“) is a product of S&P Dow Jones Indices LLC or its affiliates (”SPDJI”) and has been licensed for use by Delaware Life Insurance Company (”Delaware Life”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (”S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (”Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Delaware Life. Retirement Chapters 10® is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500®.

Delaware Life

Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge and a market value adjustment (MVA) also may apply. Withdrawals will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits.

Fixed index annuities are not securities and do not participate directly in the stock market or any index, and are not investments. It is not possible to invest directly in an index.

Riders are available for additional expenses.