Target Income 10®
Built for Plan A, Equipped for Plan B. When life happens, Target Income 10® protects your retirement income and gives you the flexibility to handle the changes as they come.
- Income with simple guaranteed lifetime withdrawal benefit (GLWB).1
- Accumulation potential to maximize both the account value and death benefit growth for potential legacy planning in case of death or if your income plans change.
- Flexibility to adapt to life’s changes and make decisions based on the needs of that time—means more control should the unexpected happen.
- Terminate the rider at any time and stop fees immediately.
- Choose Single/Joint election when guaranteed income is turned on (instead of at the time of application) so you can make a choice based on your current need, at no additional cost.
- Consolidate assets into a single solution by not limiting the ability to add additional premiums.
- Turn on income when you need it any day after the first year and get that day’s roll-up—no waiting for an anniversary for a benefit base increase—with the benefit of our daily roll-up.
- Take partial withdrawals2 from your account value—10% annual free withdrawal amount. And if you have the GLWB, a partial withdrawal taken prior to accessing lifetime income does NOT stop your roll-up.
Target Income 10® protects your retirement income and gives you the flexibility to handle the unexpected and the control to make decisions based on the needs of that time.
Ways to access your income:
Guaranteed lifetime withdrawals
Target Income 10® offers an optional Guaranteed Lifetime Withdrawal Benefit rider, available for an additional fee, that provides lifetime income even if your account value should go to zero, as long as certain requirements are met.
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 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 10 contract years. After the first ten 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 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.
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 plus interest earned at the minimum guaranteed rate stated in the contract, minus 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, Target Income 10® gives you the flexibility to take income in the way that best suits your needs and goals.
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, Target Income 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.4
Index-linked Options Sponsored by Global Leaders
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.
Morgan Stanley is a leading global financial services firm with offices in in New York City, London, Tokyo, Hong Kong and other world financial centers. The firm provides investment banking, securities, wealth management and investment management services to clients worldwide including corporations, governments, institutions and individuals.
Greater accumulation of account value can be vital should your liquidity needs change. Target Income 10® gives you the potential to maximize both your account value and death benefit growth for potential legacy planning in case of death or should your income plans require adjustment. Target Income 10® offers simple and transparent accumulation potential with:
- A diverse set of index options that cover a variety of geography, strategies/styles, and most importantly, asset classes.
- Competitive rates/caps/spreads to maximize both your account value and death benefit growth.
- Banded rates that reward you with higher rates as you accumulate.
- A unique five-year crediting strategy that offers multi-year options, while recognizing the need for payoffs during the term.
- Your earnings grow 100% tax deferred, until you start taking withdrawals or income payments.
- An optional rider that can provide lifetime income, protection of your principal and competitive accumulation potential based on the performance of the interest rate options you select.
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. It is an insurance product designed to help you prepare for the future.
Like all fixed index annuities (FIAs), Target Income 10® offers growth potential and principal protection—plus a choice of income options when you’re ready to retire. But it's the optional Guaranteed Lifetime Withdrawal Benefit (GLWB) rider available with Target Income 10® that really boosts the value of this annuity. This extra rider, available for an additional fee, accelerates your accumulation of income benefits by:
- Adding a 10% bonus to your benefit base for all premiums you pay during the first year of your contract. The benefit base is not a surrender value or death benefit and is not available as a lump sum.
- Growing the benefit base by 9% each year for the first 10 years.
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.
CROCI Sectors III USD 5.5% Volatility Control Index
This Index, sponsored by Deutsche Bank, represents an array of global equity/stock markets and selected industry sectors, balanced by a cash component to help limit overall volatility. It offers a significant amount of global exposure, because the index tracks stocks in the U.S., Europe and Japan.5
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.
Morgan Stanley Global Opportunities Index
This index uses a rules-based, multi-asset strategy and a trend-following methodology to make allocations to global equities, interest rates and commodities. This approach diversifies risk and balances exposure to various market risk factors to reduce the portfolio’s natural volatility. The index is managed to a 5% target volatility over the long term and may also include a cash allocation to reduce overall volatility.
More about Target Income 10®:
Guaranteed principal to protect your retirement money
Unlike other retirement products, a fixed index annuity is not an investment in individual securities.