Delaware Life PrimeStart Bonus Annuity – Market Growth, 10% Bonus, and Lock-In Protection

The PrimeStart Bonus 10 was launched by Delaware Life in March 2024 with a 10% premium bonus — which is where the product name originates. The name “Bonus 10” refers to the product series, not necessarily the current bonus percentage. Delaware Life has since updated the product’s bonus to 14% on premium payments received within the first 60 days of contract issue. This type of rate update is common in the annuity market — carriers adjust bonus percentages, cap rates, and participation rates in response to interest rate environments and competitive positioning. The product’s three core structural advantages — the Lowest Starting Index Value, the Flex-Lock rate guarantee, and the bonus itself — remain intact across product versions. The important takeaway for buyers: always verify the current bonus percentage on the Delaware Life rate sheet at the time of application, and confirm it applies in your state. Do not rely on marketing materials or product names alone for current rates. Diversified Insurance Brokers pulls current rate sheets at the time of each quote comparison so the illustration reflects the actual current bonus and crediting terms, not a historical snapshot.

The Lowest Starting Index Value is a no-cost structural feature that changes how the starting index point is measured for first-term interest crediting. In a standard FIA, the contract issue date determines the starting index value — whatever the index closes at on that day becomes the baseline from which growth is measured at the end of the crediting term. If the market happens to be at a temporary peak on the issue date, the starting point is unfavorably high, and the bar for earning any credit in that first term is correspondingly higher. The Lowest Starting Index Value feature instead uses the lowest daily closing value of the selected index across all 90 days following contract issue. Whichever daily closing value is the lowest during that 90-day window becomes the baseline for measuring performance at the first term end. The practical effect is meaningful: if markets decline somewhat after the issue date — as they commonly do during periods of volatility — the starting point automatically adjusts downward to that lower value. This creates a lower threshold for earning positive credits in the first term and effectively means the contract cannot start at a temporary high-water mark. The feature applies to the first crediting term only — after the first term renews, subsequent terms use standard point-to-point measurement. For buyers who are entering the annuity at a moment of market uncertainty, this feature can provide meaningful behavioral and mathematical advantages in the first year without any additional cost.

The Flex-Lock Index Account is one of the most structurally distinctive features of the PrimeStart Bonus 10 and one that is not widely replicated across the industry. In a standard FIA, crediting rates — cap rates, participation rates — are declared at contract issue and guaranteed only for the current term, typically one year. At each annual renewal, the carrier may adjust the rates within the contractual maximum. Buyers who lock into a high participation rate in year one may find the rate significantly lower at year two renewal. The Flex-Lock feature changes this: for select Flex-Lock index accounts, the participation rate or other crediting factor set at contract issue is guaranteed for the entire 10-year surrender charge period. The rate does not change at any annual renewal during the surrender period. This creates a fundamentally different planning environment — the crediting rate on those accounts is known and fixed for 10 years, similar in predictability to a MYGA’s interest rate guarantee for its term. There are important limitations to understand: first, Flex-Lock accounts are only available on select index strategies, not on all crediting options available in the product; second, reallocation is permitted on any contract anniversary but only among Flex-Lock accounts and the fixed account — reallocating out of a Flex-Lock account does not preserve the locked rate on subsequent reallocations back; third, Flex-Lock accounts are not available for renewal at the end of the 10-year surrender period — when the surrender period ends, the Flex-Lock feature ends with it, and subsequent renewals use standard declared rates. Buyers who want the Flex-Lock guarantee for the full surrender period should confirm at issue which strategies carry the Flex-Lock feature and make their allocation elections accordingly.

PrimeStart Bonus 10 has no optional income riders — no Guaranteed Lifetime Withdrawal Benefit, no income base, no annuity-income overlay. It is an accumulation-focused FIA. Buyers who want lifetime income from this product must access it through one of two mechanisms after the accumulation phase: annuitization or systematic withdrawals. Annuitization converts the full Accumulation Value (or a portion of it) into a stream of periodic payments under a settlement option — which can be structured for lifetime income, period certain, or joint-life coverage. Annuitization is irrevocable and eliminates lump-sum access to the remaining balance. Systematic withdrawals provide ongoing access to the Accumulation Value at whatever schedule and amount the owner designates, subject to the free withdrawal provisions during the surrender period and unlimited access after the surrender period ends. For buyers who want immediate or near-term income from their annuity during the surrender period, PrimeStart Bonus 10 is not the appropriate vehicle — income FIA products with embedded GLWB riders such as the F&G Safe Income Advantage, North American Income Pay Pro, or Midland National Income Planning Annuity are more appropriate for that objective. PrimeStart Bonus 10’s role is to grow the accumulation base over 10 years using the bonus, Lowest Starting Index Value, and Flex-Lock advantages — and then be used as a source of either annuitized lifetime income or systematic withdrawals when the surrender period ends.

The Nursing Home Waiver on PrimeStart Bonus 10 provides one-time penalty-free access to the full Accumulation Value — without surrender charges or MVA — if the contract owner is confined to a hospital or nursing facility for at least 90 consecutive days, after the first contract anniversary. However, there is a critical eligibility restriction that is less common among competing FIAs: the contract must have been purchased before the owner’s 76th birthday. If the owner was 76 or older at the time of contract issue, the Nursing Home Waiver is not available. This means buyers who are 75 and purchasing the PrimeStart Bonus 10 are eligible for the waiver (contract issued before age 76), while buyers who are 76 or older at issue are not. For buyers in the 75–80 age range — which is within the maximum issue age of 80 — this restriction means a subset of otherwise eligible buyers will not have nursing home waiver protection. This is an important evaluation factor for older buyers who see the health event waiver as a meaningful part of the contract’s safety net. The separate Terminal Illness / Hospice Waiver does not carry the same age restriction — it is available after one year from contract issue, without an age cutoff. Both waivers are one-time provisions, not repeating annual benefits. State variations may apply.

Delaware Life Insurance Company holds AM Best A- (Excellent) with a Positive outlook (revised October 9, 2025), S&P A- (Stable, upgraded December 2024), and Fitch A-. The A- rating places Delaware Life in the same financial strength tier as American Equity Investment Life Insurance Company (A), Aspida Life Insurance Company (A-), and Forethought Life Insurance Company / Global Atlantic (A) — and one notch below the A+ carriers in the FIA market (Midland National, North American, Allianz Life, Pruco Life / Prudential). The AM Best Positive outlook is the more forward-looking data point: it signals that AM Best expects Delaware Life’s financial profile to improve, with a potential upward rating revision if the company continues on its current trajectory. This distinguishes Delaware Life from A- carriers with Stable outlooks, because it suggests directional momentum rather than steady-state positioning. Delaware Life has also been named a Ward’s 50 L&H Top Performer for six consecutive years — a recognition based on actual financial performance metrics across nearly 700 carriers — which adds independent validation of operating quality beyond the rating letter itself. For a 10-year accumulation commitment (the PrimeStart Bonus 10 surrender period), the A- with Positive outlook provides a reasonable carrier confidence baseline for buyers who are comfortable with the A- tier. Buyers who require A or A+ minimum carrier ratings should compare PrimeStart Bonus 10 against accumulation FIAs from A-rated carriers such as Athene Annuity and Life Company (A+, Comdex 93) to assess whether the PrimeStart structural advantages (bonus, Lowest Starting Index Value, Flex-Lock) outweigh the carrier tier difference for their specific situation.

Precision Portfolios are Delaware Life’s turnkey allocation options available within the PrimeStart Bonus 10 — a model-driven approach that allocates across the available index strategies according to a defined framework, rather than requiring the buyer to select individual index accounts and percentages manually. Two options are available: Precision Core and Precision Edge. These portfolio options are designed for buyers who prefer a simplified, pre-structured approach to index strategy selection — either because they want a balanced allocation across multiple indices without the complexity of individual selection, or because they want a specific risk or growth profile (Core vs. Edge likely reflecting different accumulation or volatility orientations — confirm the specific allocation methodology for each portfolio option with current product materials). Precision Portfolios can also be combined with Flex-Lock accounts, subject to the Flex-Lock eligibility requirements for the specific index strategies included in the portfolio. For buyers who are comfortable making individual index strategy selections based on the cap rates, participation rates, and index characteristics available at the time of application, Precision Portfolios are optional — the individual strategy selection approach is also available. For buyers who prefer a managed model allocation or who are less familiar with evaluating individual FIA index strategies, the Precision Portfolio framework provides a structured default that has been built into the product design.