Delaware Life DualTrack Income Fixed Indexed Annuity – Two Income Paths. One Powerful Outcome
Delaware Life DualTrack Income Fixed Indexed Annuity – Two Income Paths. One Powerful Outcome
At Diversified Insurance Brokers, we specialize in helping retirees and pre-retirees design structured, dependable income strategies that balance growth, protection, and long-term flexibility. One of the most innovative income-focused fixed indexed annuities available today is the Delaware Life DualTrack Income Fixed Indexed Annuity. This strategy-driven annuity is built for individuals who want lifetime income guarantees while still participating in market-linked upside opportunities — without exposing their retirement savings to direct market losses. For retirees concerned about sequence-of-returns risk, longevity risk, and unpredictable volatility, this type of structure can create a powerful balance between safety and income growth.
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Delaware Life DualTrack Income: Key Product Specifications
| Feature | Details |
|---|---|
| Carrier and Financial Strength | Delaware Life Insurance Company. Group 1001 company. Zionsville, Indiana. AM Best: A- (Excellent), Positive Outlook. Group 1001 Insurance: $66.8B in combined assets under management, 496,000+ active annuity contracts and life insurance policies (as of September 2024). Delaware Life is a pioneer in the FIA space — the parent company traces the original fixed indexed annuity launch to February 1995. Product launched January 2025. Available exclusively through Independent Marketing Organizations. Confirm state availability at application. |
| GLWB — Required at Issue | The Guaranteed Lifetime Withdrawal Benefit (GLWB) is required at contract issue — it is not optional. GLWB cost: 1.20% of the withdrawal benefit base annually. This fee is deducted regardless of whether income withdrawals have begun. The GLWB tracks two simultaneous income growth paths and automatically credits the higher result at Milestone Stack points. Withdrawal percentages increase with age at income activation — longer deferral produces a higher payout percentage. Income continues for life even if account value depletes to zero, as long as excess withdrawals have not been taken. Joint life income option available. For a full explanation of how GLWB structures work across the FIA market, see our guide on how GLWBs work. |
| The Two Income Tracks | Track 1 — Roll-Up Base: 9% annual compound interest applied to the income base for up to 10 years. This track grows the income base regardless of index performance — providing a predictable, guaranteed income growth path during the deferral period. At 9% compounded on a $200,000 premium over 10 years, the Roll-Up Base reaches approximately $473,769. Track 2 — Performance Base: 150% of earned index interest credited to the income base each year, until income is elected. If the indexed strategy credits 6% in a given year, the Performance Base receives 9% (6% × 150%). If the indexed strategy credits 10%, the Performance Base receives 15%. In strong index years, the Performance Base may significantly outperform the Roll-Up Base. In flat or negative index years, no credit is added to the Performance Base for that period. Both tracks run simultaneously — buyers do not choose between them. See our guide on what an income rider is for context on how income bases and payout calculations work. |
| Milestone Stack — The Lock-In Mechanism | At the 5th and 10th contract anniversaries, both the Roll-Up Base and Performance Base are evaluated. Whichever track produced the higher income base value at that milestone becomes the new starting point for both tracks going forward. This reset always moves upward — it can never reduce the income base. The practical effect: if markets performed well and the Performance Base is higher at year 5, both tracks reset to that higher value before the next 5-year period begins. If markets underperformed and the Roll-Up Base is higher, both tracks reset to the Roll-Up Base value. This eliminates the regret of having been on the “wrong” track. If income is deferred beyond 10 years, the Performance Base continues to benefit from the 150% multiplier — the Roll-Up Base’s 9% compound period has ended but the performance path remains active. |
| Indices, Floor, and Liquidity | Three indexed strategies: S&P 500, Nasdaq-100 VC 12% Index (volatility-controlled), and Barclays Aries Index. Fixed account also available. 0% floor on all indexed strategies — negative index performance does not reduce account value. Free withdrawals: 10% annually beginning year 2. Excess withdrawals reduce the income base proportionately and can affect GLWB income calculations — coordinate carefully with the rider provisions. RMD-friendly for qualified accounts. See our overview of annuity free withdrawal rules and annuity surrender charges explained for the broader liquidity framework. |
| Chronic Illness Multiplier and Waivers | Chronic Illness Income Multiplier: if the annuitant qualifies as chronically ill, the Annual Withdrawal Amount is doubled for up to 5 years (where available by state). This is not long-term care insurance but provides meaningful financial support during qualifying health events. Terminal illness waiver: penalty-free full or partial withdrawal. Nursing home waiver: penalty-free access under qualifying confinement. State availability may vary — confirm specific waiver terms and the chronic illness qualification criteria at application. Death benefit: account value paid to beneficiaries. |
The DualTrack Income design helps eliminate one of the biggest retirement fears: choosing the wrong growth strategy. Instead of forcing you to pick between safety or performance, this annuity tracks two separate income growth paths and automatically credits you with the better result at key lock-in points. That means you are positioned for income growth during strong market periods while maintaining a predictable guaranteed foundation if markets underperform. For investors comparing options or exploring structured income tools like How Fixed Indexed Annuities Work, the DualTrack Income approach represents a more advanced evolution of income planning.
Why the GLWB Being Required Changes the Buyer Profile
One of the most important clarifications about the DualTrack Income is that the GLWB is not optional — it is required at issue and carries a 1.20% annual cost deducted from the withdrawal benefit base. This structural fact defines the product’s appropriate buyer profile. The DualTrack Income is not an accumulation-focused FIA that happens to offer an income option. It is an income-first FIA where the entire crediting design — the dual tracks, the 150% multiplier, the Milestone Stack — is built around the GLWB structure. The 1.20% annual fee is the price of admission to that system. Buyers who purchase this contract and never activate income payments will still pay 1.20% annually throughout the deferral period, which will reduce the growth trajectory of the account value (not the income base). This is important to understand when comparing the DualTrack Income against pure accumulation FIAs that charge no income rider fee. The DualTrack Income makes sense when your retirement income plan specifically requires guaranteed lifetime income and you want the dual-track structure to build the largest possible income base before activation. It makes less sense as a pure accumulation vehicle for buyers who are uncertain whether they will ever use the GLWB. For buyers who are unsure whether they need a GLWB, our resource on lifetime income annuity strategies and our guide on how income riders work can help clarify whether the income structure matches your retirement design before committing to the 1.20% annual charge.
The Milestone Stack: How the Year-5 and Year-10 Reset Works in Practice
The Milestone Stack is the most strategically powerful feature of the DualTrack Income, and it is worth walking through a realistic scenario to make the mechanics concrete. Consider a buyer who deposits $250,000 at age 58 and plans to activate income at 68 — a clean 10-year deferral window. Track 1 (Roll-Up Base) begins compounding at 9% annually. After 5 years, $250,000 compounded at 9% reaches approximately $384,772. Track 2 (Performance Base) grows based on actual indexed credits multiplied by 150%. If the indexed strategy averaged 7% annually for those first 5 years, the Performance Base would receive 10.5% annually (7% × 150%), reaching approximately $411,505. At the year-5 Milestone Stack, the Performance Base is higher — so both tracks reset to $411,505. The Roll-Up Base now compounds at 9% starting from $411,505 for the next 5 years, reaching approximately $632,939 at year 10. The Performance Base continues tracking at 150% of index credits starting from $411,505. If markets averaged another 7% annually in years 6 through 10, the Performance Base would reach approximately $679,490. At the year-10 Milestone Stack, the Performance Base is again higher — so the income base used to calculate lifetime withdrawals is $679,490. The result is substantially higher than the standalone Roll-Up Base calculation would have produced without the year-5 reset ($473,769 from the original $250,000 at 9% compound for 10 years). That difference translates directly into higher annual income at activation. The buyer never made a choice — the structure did the work automatically at each milestone. Buyers who activate income beyond year 10 continue benefiting from the 150% performance multiplier on the Performance Base, while the 9% Roll-Up Base has concluded its compounding period.
Beyond income growth, the annuity offers access to multiple index strategies including the S&P 500, Nasdaq-100 VC 12% Index, and Barclays Aries Index. Each strategy includes a 0% floor, which protects against market losses during negative index years. That means even if the market declines sharply, your annuity does not lose account value due to index performance. This downside protection is one of the primary reasons fixed indexed annuities have become a core allocation tool for retirement-focused investors seeking alternatives to bond-heavy portfolios or volatile equity exposure.
The Nasdaq-100 VC 12% Index and Barclays Aries: What Makes Them Different
The index menu deserves specific explanation because two of the three options — the Nasdaq-100 VC 12% Index and the Barclays Aries Index — are volatility-controlled proprietary indices that behave differently from the raw Nasdaq-100 or a standard S&P 500 strategy. The Nasdaq-100 VC 12% Index applies a 12% volatility cap to the Nasdaq-100, reducing the index’s exposure to equities when market volatility rises above that threshold and increasing exposure when volatility falls below it. This means the index captures Nasdaq-100 linked performance in a more smoothed form — lower highs in explosive bull markets, but more consistent positive performance in moderate markets, and a more controlled drawdown profile in volatile periods. The “VC 12%” designation refers to this volatility control target. Insurance carriers favor volatility-controlled indices because the options used to fund index-linked crediting are less expensive at lower volatility targets, allowing for more competitive participation rates. The Barclays Aries Index is a proprietary multi-asset index from Barclays designed around risk management and tactical allocation. Like most Barclays FIA indices, Aries uses systematic rules to dynamically shift between asset classes based on market signals, targeting a consistent volatility profile. For buyers, the practical question is whether to allocate to a single index strategy or split across two or three. Splitting allocation diversifies crediting exposure — if one index produces zero credit in a given year, others may produce positive credits that partially offset. In the DualTrack Income’s Track 2 (Performance Base), the 150% multiplier amplifies the aggregate credited interest across all allocations, making the allocation decision consequential for how quickly the Performance Base grows relative to the Roll-Up Base.
Liquidity is another important consideration. Beginning in year two, the annuity allows penalty-free withdrawals of up to 10% annually. The contract is designed to be RMD-friendly for qualified accounts, aligning with updated distribution requirements under RMDs after SECURE 2.0. However, any withdrawals that exceed the GLWB provision — including excess withdrawals taken to satisfy larger RMD amounts — can reduce the income base proportionately. For retirees coordinating IRA income, Social Security timing, and pension distributions, this provision requires careful planning to avoid unintended income base reductions. Buyers placing qualified funds into DualTrack Income should model their expected annual RMD amounts against the 10% free withdrawal provision before applying. Our guides on IRA to annuity transfers and 401(k) to annuity rollovers cover the tax-deferral mechanics for qualified account positioning.
The Chronic Illness Multiplier: Income Protection When Health Changes
The Chronic Illness Income Multiplier is one of the most meaningful real-world protection features in the DualTrack Income contract, and one that buyers often underweigh relative to the headline dual-track income structure. If the annuitant qualifies as chronically ill under the contract’s definition — typically inability to perform two or more of six Activities of Daily Living (ADLs) — the Annual Withdrawal Amount from the GLWB is doubled for up to five years. This is not long-term care insurance, and it does not replace a standalone LTC policy. However, for retirees who have not purchased LTC coverage and face the possibility of a care event during their distribution years, the income multiplier provides a meaningful financial buffer. The practical scenario: a buyer receiving $18,000 per year in GLWB income could receive $36,000 per year for up to five years if a qualifying chronic illness event occurs. That additional $18,000 annually can bridge care costs, delay facility placement, or supplement family caregiving arrangements. The Chronic Illness Multiplier requires the GLWB to be in force and the annuitant to be receiving income withdrawals (or eligible to receive them). State availability may vary, and the specific ADL criteria and physician certification requirements are defined in the contract. For buyers who do maintain separate LTC coverage, our resources on annuity laddering strategy explain how the DualTrack Income can serve as one layer of a broader retirement income architecture alongside LTC policies.
Retirement income planning is not about chasing the highest theoretical return — it is about building a predictable, durable structure that survives market cycles. The DualTrack Income addresses three major retirement risks: market volatility (through the 0% floor), longevity risk (through the lifetime GLWB guarantee), and behavioral mistakes driven by fear during downturns (through the dual-track automatic structure that removes the need for market timing decisions). Delaware Life’s A- (Excellent) AM Best rating with Positive Outlook and Group 1001’s $66.8 billion in combined assets under management provide the financial strength foundation for these long-term contractual commitments. The sibling Delaware Life Momentum Growth Plus serves buyers from the same carrier who want pure accumulation without an income rider. For buyers comparing income FIAs across the broader market, our resource on top income FIAs by rider structure covers how the DualTrack compares in terms of roll-up rate, multiplier, milestone mechanics, and cost.
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The source says the GLWB is optional — is that accurate?
No — this is a factual error. The Guaranteed Lifetime Withdrawal Benefit is required at contract issue on the DualTrack Income. According to official Delaware Life product materials, the GLWB comes at an additional cost of 1.20% of the withdrawal benefit base annually. It cannot be declined. This matters for buyers who are comparing the DualTrack Income against pure accumulation FIAs that have no income rider cost — those products are structurally different. On the DualTrack Income, the 1.20% annual fee is part of the contract design from day one, whether or not income withdrawals are ever taken. Buyers who want an accumulation-focused FIA from Delaware Life without a required income rider should evaluate the Delaware Life Momentum Growth Plus instead. The DualTrack Income is the right choice when guaranteed lifetime income is your primary retirement objective and you want the dual-track structure to maximize the income base before activation.
What happens at the Milestone Stack if the Roll-Up Base is always higher than the Performance Base?
If the Roll-Up Base is higher than the Performance Base at the year-5 Milestone Stack, both tracks reset upward to the Roll-Up Base value. The Performance Base then begins its next 5-year tracking period starting from that higher Roll-Up Base value. This means even in weak market environments — where indexed credits are consistently low and the 150% multiplier produces less than the 9% compound roll-up — the buyer benefits fully from the guaranteed Roll-Up Base at the milestone. The Performance Base, while lagging, benefits from the reset and begins the next period from a stronger starting point than it would have had without the milestone mechanism. In this scenario, the buyer effectively received a standard 9% compound roll-up income base — which is competitive with many income rider products that offer only roll-up growth. The dual-track structure creates asymmetric outcomes: strong markets reward you with a higher Performance Base at the milestone; weak markets default you to the guaranteed Roll-Up Base, with no harm done. The Milestone Stack never moves backward — if neither track has grown from its prior milestone value (which would require both tracks to produce negative results, impossible given the 0% floor on the account value and the guaranteed Roll-Up nature of Track 1), the income base holds its prior milestone value. This structural guarantee is what eliminates the typical income rider risk of “choosing the wrong track.”
How does the DualTrack Income interact with Required Minimum Distributions?
The DualTrack Income is designed to be RMD-friendly, meaning the free withdrawal provision accommodates Required Minimum Distributions in all contract years. However, buyers placing qualified funds (IRA, 401(k) rollover) into DualTrack Income must plan carefully around two potential conflicts. First, if the annual RMD exceeds the 10% free withdrawal provision, the excess amount beyond the free withdrawal triggers surrender charges during the surrender period. More critically for income planning, excess withdrawals — amounts that exceed the GLWB provision’s defined withdrawal amount once income has begun — can proportionately reduce the income base and future guaranteed income amounts. For buyers who have not yet activated income but are in RMD territory, the 10% free withdrawal provision typically accommodates most RMD calculations — but this should be modeled specifically for your account balance and RMD age. For buyers who have already activated GLWB income, the contractual income payment typically functions as the RMD distribution, and additional excess withdrawals are what create the income base reduction risk. Understanding RMD rules after SECURE 2.0 — including the updated RMD start ages and calculation methodologies — is essential coordination work before placing qualified funds in this product. Discuss your specific projected RMD amounts with a licensed professional before applying.
How does the 9% compound roll-up compare to other income FIA roll-up rates?
The 9% compound roll-up is among the highest declared compound roll-up rates in the income FIA market, which makes the DualTrack Income particularly competitive for buyers who prioritize the guaranteed income growth track over the performance track. For context: most income FIA roll-up rates range from 5% to 8% depending on the carrier, product, and whether the roll-up is simple or compound. A 9% compound roll-up is meaningfully more powerful than a 9% simple roll-up — compound growth reinvests the prior year’s credited amount, producing exponential rather than linear income base growth. On a $200,000 income base, 9% simple interest for 10 years produces a $380,000 income base. At 9% compound, the same base reaches approximately $473,769 — a difference of approximately $93,769 in income base, which translates to materially higher annual income at payout. The catch is the required 1.20% annual rider cost and the surrender period commitment. Buyers evaluating the DualTrack Income on the strength of the 9% compound roll-up should also model the net effect of the 1.20% annual fee on the account value trajectory (not the income base) and compare the projected net income against income FIAs with lower roll-up rates but also lower or no rider fees. Our resource on top income FIAs by rider structure provides the comparison framework.
Delaware Life claims to be the originator of the fixed indexed annuity — what does that mean for buyers today?
Delaware Life traces the first fixed indexed annuity to the Keyport KeyIndex product launched on February 25, 1995, through Keyport Life Insurance Company. Keyport Life was subsequently acquired by Sun Life Financial in 2001, and Delaware Life acquired Sun Life Financial’s U.S. annuity business in 2013 — creating a product heritage lineage back to the original FIA concept. For buyers, the 30-year FIA legacy is a signal of deep product engineering experience and historical familiarity with how these structures perform across multiple market cycles — including the 2000 dot-com collapse, 2008 financial crisis, 2020 pandemic crash, and the 2022 rate spike environment. Carriers that have managed FIA portfolios through those cycles have real-world data on how their reserve structures, option budgets, and crediting parameters interact with volatility. That experience is reflected in product design decisions like the dual-track system and Milestone Stack — structures that require sophisticated actuarial modeling of both guaranteed and performance-based outcomes. Delaware Life’s Group 1001 parent, with $66.8 billion in combined assets under management, provides the capital base necessary to back these obligations long-term. The AM Best A- with Positive Outlook reflects AM Best’s assessment that Delaware Life’s financial position is consistent with excellent claims-paying ability and trending toward potential upgrade.
About the Author:
Jason Stolz, CLTC, CRPC, DIA, CAA and Chief Underwriter at Diversified Insurance Brokers (NPN 20471358), is a senior insurance and retirement professional with more than 25 years of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, Group Health, Travel Medical and Evacuation Insurance, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, and contributions from his agency featured in Kiplinger and GoBankingRates— highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient. Visitors who want to explore current annuity rates and compare options across multiple insurers can also use this annuity quote and comparison tool.
Explore More Annuity Options: Browse our complete guide to What Is a Fixed Indexed Annuity? — covering FIA education, carrier products, income riders & indexed annuity strategies from 100+ carriers.
Last Reviewed: June 24, 2026 |
Reviewed by: Jason Stolz, CLTC, CRPC, DIA, CAA
Chief Underwriter, Diversified Insurance Brokers, Inc. | NPN: 20471358 | Diversified Insurance Brokers, Inc. — Licensed in all 50 states
Fact Checked by: Tonia Pettitt, CMIP©
Medicare Specialist, Diversified Insurance Brokers, Inc. | NPN: 14374308 | Diversified Insurance Brokers, Inc. — Licensed in all 50 states
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