What Is the Delaware Life Dual Track Income Annuity?
The Delaware Life Dual Track Income Annuity is one of the many options out there if you’re looking for long-term retirement income. Before making a decision, it’s important to understand exactly what this annuity offers and what it doesn’t.
Delaware Life is the company behind this annuity. Here are a few facts about them:
| Detail | Info |
| Company Name | Delaware Life Insurance Company |
| Year Founded | 2013 |
| Financial Strength Rating | A- (as of 2025) |
| Admitted Assets | Over $51 billion |
| Products Offered | Life insurance, MYGAs, FIAs, one variable annuity |
This particular annuity—the Dual Track—is a Fixed Indexed Annuity (FIA). It’s designed to give you the option of steady income in retirement, with the potential for income to grow based on how market indexes perform.
Key Features of the Dual Track Annuity
Let’s break down what the Dual Track Income Annuity actually includes:
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- Fixed Indexed Annuity: Your money isn’t directly in the stock market, but your returns are tied to market index performance.
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- Guaranteed Income Rider: This means the annuity can pay you income every year after a waiting period.
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- 1-Year Minimum Deferral: You must wait at least one year before you can start receiving income.
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- 1.2% Annual Rider Fee: This is charged every year to keep the income rider active.
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- 9% Roll-Up Rate: This is how your future income base grows each year before you start taking withdrawals.
There’s also a unique feature called the Performance Withdrawal Base, which adds extra income potential if the indexes perform well. Here’s a quick look at how that works:
| Feature | Explanation |
| Guaranteed Roll-Up Rate | 9% compound growth on income base |
| Bonus Credit Opportunity | 150% of the index return applied to the income base |
| Performance Check | Every 5 years, based on index results |
| Index Type | Custom indexes, not the S&P 500 |
If the indexes outperform the guaranteed 9% roll-up rate, your income base could be increased even more. But that’s a big “if.”
A Real Client Case: Guaranteed Income vs. Hypothetical Growth
I recently spoke with a client who is 62 years old. He was planning to delay income for 10 years. We had already built a strategy with two annuities: one to pay income during the first 10 years of retirement, and another that would begin after that.
Then he got an illustration from someone else using the Delaware Life Dual Track. He wanted a second opinion, which I fully support.
Here’s what the numbers looked like:
| Strategy | Yearly Income | Income Over 20 Years |
| Marty’s Recommendation | $2,100 more | $42,000 more total |
| Delaware Life Proposal | Lower, but with hypothetical upside |
At first, $2,100 per year didn’t seem like a big difference. But over 20 years, that added up to an additional $42,000 in guaranteed income. Meanwhile, the Delaware Life proposal promised a possible higher income if the indexes performed well.
The Problem with Hypothetical Returns
The big draw for the client was the chart showing higher future income. But here’s the problem: it was completely hypothetical.
The illustration used two custom indexes that didn’t even exist until 2023. The company used back-tested results, which is not uncommon, to show how these indexes might have done in the past. But here’s what that really means:
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- The indexes are new and unproven.
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- The results are based on how they might have performed if they had existed earlier.
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- The assumed rates are based on today’s environment, not future conditions.
In simple terms, it’s not real. It’s a model—an educated guess. And that’s why “hypothetical” is written in bold at the top of the page.
Why You Should Prioritize Guarantees Over Possibilities
I always tell people: Don’t give up a higher guaranteed income for a hypothetical “ifcome.”
If the guaranteed option gives you more income today, that’s what you should base your decision on. The future is unpredictable. Even if you’re okay with getting less income, you need to know the downfalls up front.
In this case, I made it clear to my client that I would still support him if he chose the Delaware Life product. But I didn’t want him to expect the higher income shown in the illustration, because it probably wouldn’t happen.
Pros and Cons of the Delaware Life Dual Track Annuity
This product isn’t bad. In fact, it has some solid features. But like any annuity, it also has limitations.
Pros:
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- Backed by a strong insurance company
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- Competitive guaranteed income (as of April 2025)
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- Potential for higher income if indexes outperform
Cons:
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- To beat the guaranteed 9% roll-up, indexes must do extremely well
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- Extra growth is only measured every 5 years
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- Uses three brand-new indexes with no long-term history
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- Not tied to common indexes like the S&P 500
| Feature | Reality Check |
| 9% Guaranteed Roll-Up | Strong and predictable |
| 150% Index Credit | Only helpful if indexes outperform 9% |
| 5-Year Evaluation Periods | Delays access to potential increases |
| Index History | Unproven performance, no track record |
When I explained the math to my client, it all made sense. You’d need major market gains to do better than a 9% guaranteed compounding roll-up. That’s a high hurdle.
Final Thoughts: Should You Consider the Dual Track Income Annuity?
Here’s my honest take: If you’re okay with the uncertainty with the chance for a higher income, and you fully understand how the product works, then it could be a good fit.
But you need to ask yourself:
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- Can I afford to receive less income if the indexes don’t perform?
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- Do I understand that the increase is not guaranteed?
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- Am I okay with using brand-new, custom indexes instead of proven ones?
If the answer to any of those is “no,” you might want to explore other options.
You don’t have to make this decision alone. And you definitely shouldn’t feel rushed into it. There are lots of ways to build guaranteed income—and some strategies can give you more money with less uncertainty.
If you’re evaluating this annuity or anything similar, it’s smart to get a second opinion and make sure it fits with your long-term plan.
I offer second opinions completely free of charge with no commitment from you. All you have to do is schedule a call using my online calendar here.
Let’s Talk!
Marty Becker
Podcast Episode #70: Delaware Life Dual Track Income Annuity Review
Download Episode #70: Delaware Life Dual Track Income Annuity Review on Apple Podcast