The appeal of a fixed indexed annuity (FIA) like Target Growth 10 is simple: you are not buying the stock market. Instead, you are buying a principal-protected insurance contract that credits interest based on an index formula. When the index performs well, your annuity may credit interest up to the cap or crediting limits. When the index performs poorly, your contract is designed to protect the accumulated value from direct market loss (subject to the contract terms). For many retirees and pre-retirees, that balance—upside potential with downside protection—can be the difference between staying invested in a plan and feeling forced to time the market.

Target Growth 10 also fits a common retirement planning need: “I want growth that I can live with.” People don’t always need the most aggressive strategy. They need a strategy that’s consistent with their risk tolerance, time horizon, and the role the annuity plays inside the bigger plan. For some households, a fixed indexed annuity is the middle ground between leaving everything exposed to market swings and locking everything into a simple fixed rate. If you’re weighing that decision, it’s worth reading our overview of how these contracts work: How Does a Fixed Indexed Annuity Work?.

This product typically includes a 10-year surrender schedule. That matters because it sets expectations. FIAs are designed for long-term planning, not short-term parking. If you think you’ll need to access the full premium quickly, you want to understand the surrender charge period, free-withdrawal provisions, and any special features like a bailout provision. On the other hand, if you’re allocating money you intend to keep positioned for a longer retirement window, a 10-year design can be appropriate—especially when the contract includes meaningful guarantees.

One of the smartest ways to approach any annuity is to start with the outcome you want. Are you focused on accumulation growth with protection? Are you trying to build future income? Do you need liquidity safeguards in case rates change? Are you repositioning an IRA rollover or a portion of a brokerage/CD ladder? The contract’s structure should match the goal. If you’re comparing options across the broader market, it also helps to know what fixed-rate annuities and bonus annuities are currently offering so you can compare tradeoffs apples-to-apples.

Multiple Index Crediting Strategies

The Delaware Life Target Growth 10 is built around index crediting strategies that are designed to offer upside potential with protection against direct market loss (as defined in the contract). Instead of earning a variable return like a stock portfolio, your growth is based on a crediting method tied to an index. These choices matter because different indexes and strategies can behave differently across market conditions—especially when volatility is high or when rates shift.

Policyholders can typically choose from multiple index options, including well-known benchmarks and engineered indexes designed to manage volatility. Examples commonly include the S&P 500 Index and additional index choices such as the Goldman Sachs Canopy Index, the Franklin SG Select Index, and the First Trust Capital Strength Barclays 10% Index. The point isn’t that one index is always “best.” The point is that a well-designed FIA offers a menu of choices so you can align your approach to your goals—whether that’s smoothing volatility, seeking a certain type of return profile, or diversifying your crediting approaches inside one contract.

• S&P 500® Index

• Goldman Sachs Canopy Index

• Franklin SG Select Index

• First Trust Capital Strength Barclays 10% Index

These index options are generally designed to provide flexibility, but it’s still important to understand the mechanics that drive what gets credited to your annuity. Caps, participation rates, spreads, and declared rates can change over time (subject to the contract’s rules). That means your strategy selection should factor in how you plan to use the annuity. If you’re prioritizing predictable accumulation and long-term steadiness, you may prefer a strategy that historically behaves more consistently even if it’s less aggressive. If you’re planning for future lifetime income, you may focus on how the contract supports that objective and how the income features (if elected) work alongside the accumulation value.

All growth inside an annuity is generally tax-deferred, which means you’re not taxed each year on credited interest while the money stays in the contract. That tax deferral is one reason annuities can be attractive for retirement savers who have already maxed out other tax-advantaged accounts or who want to build another bucket of long-term money with a different risk profile. If you’re evaluating annuities inside an IRA rollover, you may also want to review: What Is an IRA Annuity?.

If you want help choosing the most appropriate crediting approach for your situation, a personalized illustration is the easiest way to compare how different strategies may look over time based on contract assumptions and your funding level. You can request that here: Request an Annuity Quote. We typically evaluate the crediting options in the context of your time horizon, liquidity needs, and what role the annuity is meant to play in your retirement plan.

Guaranteed Growth with GMAV

One of the standout features of the Target Growth 10 structure is the Guaranteed Minimum Account Value (GMAV). In plain English, GMAV is designed to provide a “floor” that helps protect your long-term outcome even if index returns underperform. With this feature, the contract generally targets that your account will be worth at least 120% of your initial premium at the end of the 10-year term (subject to contract provisions). That kind of guarantee can be meaningful for conservative investors who want upside potential but do not want to feel like their outcome is completely dependent on index performance.

It’s important to understand what GMAV is and what it is not. GMAV is not a promise of market-like returns every year. It’s a long-term safeguard designed to reinforce the purpose of the contract: principal protection with a defined guarantee at a set point in time. For some households, that guarantee acts like a planning anchor. It can help people commit to the time horizon needed for the annuity to do its job instead of reacting emotionally to short-term market headlines.

This is also where product comparison becomes especially valuable. A fixed annuity might offer a declared rate guarantee for a set term, while an FIA like Target Growth 10 can offer a different mix of upside potential and long-term guarantees. If your priority is simply a fixed declared rate, it can be useful to compare side-by-side with: Current Fixed Annuity Rates. If your priority is using an upfront credit to strengthen value from day one, review: Current Bonus Annuity Rates. Many clients make better decisions simply by seeing the tradeoffs clearly.

Liquidity and Protection Features

Liquidity is one of the first concerns people raise with a 10-year annuity—and it should be. The right annuity is one you can live with. Many long-term annuities are designed with a middle-ground approach: strong long-term benefits, plus controlled access so you’re not “locked up” if life happens. With Target Growth 10, a common feature is penalty-free withdrawals of up to 10% of the account value annually starting in year two (subject to contract rules). That feature can matter if you want access for planned expenses, unexpected needs, or simply peace of mind.

The contract may also include a bailout provision, which is designed to protect you if renewal terms (such as cap rates) fall below a stated threshold. Bailout provisions can be valuable because they acknowledge a real risk in annuity planning: terms can change. If a future renewal cap is materially less attractive, a bailout can give you an exit option without surrender charges. Not every annuity offers this kind of guardrail, and when it is included, the details are crucial. Threshold definitions, timing, and which strategies qualify can vary, so it’s worth reviewing the exact language in the policy illustration and contract.

Another common liquidity question is: “What if I need more than 10%?” That’s where planning matters. If you anticipate a large planned expense, it may be smarter to allocate only a portion of your assets to the annuity or to blend strategies (for example, combining different annuity terms or pairing an annuity with other liquid reserves). In certain situations, an annuity ladder may be worth exploring, where different terms mature in different years. If you’re building a structured approach, our main annuity hub can be a useful jumping-off point: Current Annuity Rates.

Estate Planning Benefits

Annuities can also play a straightforward role in estate planning. In the event of death, beneficiaries generally receive the full accumulation value (subject to contract provisions and any outstanding loans if applicable). This allows the annuity to serve as a wealth-transfer tool that can be simpler than many people expect. Beneficiary designations typically avoid probate in many cases, and the transfer process is often handled directly through the carrier.

That said, the tax treatment for beneficiaries depends on whether the annuity is qualified or non-qualified and on how the beneficiary elects to receive the funds. Because beneficiaries and payout elections can impact taxes, it helps to coordinate your annuity planning with your broader retirement and legacy plan. If you want a deeper explanation of how beneficiary payouts work for annuities, see: Annuity Beneficiary Death Benefits.

Who This Annuity May Be a Good Fit For

The Delaware Life Target Growth 10 Fixed Index Annuity may be a strong fit for individuals who are focused on protecting retirement assets while still pursuing reasonable growth potential. The most common fit is someone nearing or entering retirement who does not want to relive the emotional stress of market drawdowns, but still wants a strategy that can credit interest based on index performance rather than relying only on a fixed declared rate.

This contract can also appeal to savers who like the idea of a clear long-term guarantee. A GMAV that targets a minimum value after 10 years can be a compelling feature for people who want a “floor” that supports planning. It may also fit conservative investors who want to avoid direct market losses while staying positioned for upside potential. For IRA and rollover clients, it can serve as a long-term accumulation-focused solution when you’re not yet ready to turn on income but want to position assets with protection and structure.

It can also be a fit for people who value flexibility features like penalty-free withdrawals and bailout provisions, especially when they want safeguards against changing renewal terms. In retirement planning, flexibility is often as important as growth. The best plan is the plan you can stick with.

If you’re unsure whether Target Growth 10 is the right fit, the best next step is to compare it against other approaches—including fixed rate annuities and other FIAs with different crediting designs. Many clients are surprised by how much variation exists across carriers once you compare caps, spreads, liquidity provisions, and long-term guarantees. Use these resources to compare: Current Fixed Annuity Rates, Current Bonus Annuity Rates, and our main rate hub: Current Annuity Rates.

When you’re ready to see how this product looks for your age, state, premium level, and goals, request a personalized quote and illustration here: Quote Request Form. We’ll help you evaluate the annuity in plain language, including how the guarantees, liquidity, and crediting strategies line up with what you’re trying to accomplish.