Assured Income 7 SM Fixed Index Annuity. Delaware Life. Plan for your retirement lifestyle. Issued by Delaware Life Insurance Company

Transcription

1 Assured Income 7 SM Fixed Index Annuity Plan for your retirement lifestyle Issued by Delaware Life Insurance Company NOT FDIC/NCUA INSURED MAY LOSE VALUE NO BANK/CREDIT UNION GUARANTEE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

2 The Good News: Living Longer Americans are living longer than ever thanks to advances in medicine and healthier lifestyles. This is great news, but longer lifespans mean extra years in retirement. You may even spend more years in retirement than you have at work. You may need to plan for more financial resources to have the retirement lifestyle you envision. The Mission: Planning for Lifetime Income With some practical planning now you can find a strategy to help you achieve your personal vision of retirement. To get there, you need a product that will provide you with dependable income tomorrow. While no one can control the economy, the markets or the direction of interest rates, there are aspects of retirement planning you can control. One option you and your financial professional may want to consider to secure a sustainable retirement lifestyle is a fixed index annuity (FIA). A FIA is a contract between you and an insurance company that is designed to help you meet your long-term retirement needs. In exchange for your payment of an insurance premium, the insurance company gives you the opportunity to earn additional interest based on the performance of a market index, and pays you income in the future. FIAs offer the chance to benefit from a rising market index, with no principal risk 1 1 Withdrawals will reduce any protection benefits, and may result in a surrender charge or a market value adjustment. 2 Assured Income 7 SM Fixed Index Annuity

3 Upside Potential Based on Market Performance A FIA may credit interest to your account based on the performance of a specific market index, such as the Standard & Poor s 500 Index. Companies that issue FIAs often offer a choice of indexes and methods used to calculate the interest you can earn. Guaranteed Principal Both your premium payment and any interest locked in at the end of each term are protected from loss by the claims-paying ability and financial strength of the issuing insurance company, even in poor markets. Some FIAs have an optional benefit (available for an additional annual fee) that allows you to get at least your premium payments back at any time, with no surrender charge. Tax Deferred Growth All your earnings grow 100% tax deferred, until you start taking withdrawals or income payments. In most cases, that will be after retirement, when your tax bracket may be lower. Withdrawals are taxed as ordinary income and if taken prior to 59½, you may have to pay a 10% federal tax penalty. Lifetime Income When you re ready to start drawing on your retirement money, fixed index annuities offer a variety of options. How FIAs Work: Growth Potential, with No Downside Risk Many FIAs include a feature called an annual reset, which uses the previous year s ending value as the starting value in the next year. At that point, the earnings are locked in and protected from loss. However, if the market stayed flat or went down during the year, your value does not decrease. When market index is down or flat, the annuity does not lose value Annuity Account Value Stock Market Index When market index is up, the annuity account value can rise Contract The chart is a hypothetical representation of fixed index annuity growth under varying market/index conditions and is not meant to represent the performance of Delaware Life Assured Income 7 SM Fixed Index Annuity or any other specific product. 3

4 Delaware Life Assured Income 7 SM at a Glance Assured Income 7 SM Fixed Index Annuity is a flexible and straightforward solution built to provide you with guaranteed lifetime income. Your annuity gives you the choice of simple crediting options to grow your money and competitive guaranteed income you can depend upon and plan around. Assured Income 7 SM offers an excellent balance of predictable guaranteed income and competitive accumulation. Guaranteed Lifetime Income When you transition to retirement, you can depend on guaranteed lifetime income with Assured Income 7 SM even if your account (cash) value goes to zero. Your annuity s benefit base the amount on which your lifetime income will be based is guaranteed to grow by an attractive, set percentage each contract year for 10 years. You ll know exactly what your income will be, so you ll have peace of mind and solid information you need to plan your retirement. Or should you choose to annuitize, there are several annuity payment options for you and your spouse (if you purchase a joint contract). Remember that pre-retirement withdrawals can impact the available amount of retirement income by reducing your future earnings and may result in a surrender charge and/or a market value adjustment. Withdrawals prior to age 59 1/2 may incur an IRS penalty. Straightforward Options to Increase Your Assets You can choose to earn interest with a fixed-rate account that pays a guaranteed rate for a specified period of time and/or an underlying S&P 500 market index with competitive accumulation rates. How much interest you earn will depend on both index performance and the crediting method (the way your interest is calculated) you choose (and may also be limited by a cap, spread or participation rate for more information see the box to the right). Principal Protection Since you are not invested in any stock or bond, you don t have to worry about losing your money to market and economic surprises. (But if you make withdrawals or surrender your contract during the first seven years, there is a penalty. Also, you can incur fees related to optional benefits.) Caps, Participation Rates and Spreads Crediting methods can have components such as caps, participation rates and spreads that may limit the amount of indexed interest you receive. These components are subject to change (for example, caps may be raised or lowered). A cap is the maximum interest rate the FIA can earn. A participation rate is the percentage of the gains achieved by the underlying index that will be credited to the FIA. A spread will subtract a certain percentage from any gain that the underlying index achieves. 4 Assured Income 7 SM Fixed Index Annuity

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6 Key Feature The Guaranteed Lifetime Withdrawal Benefit With Assured Income 7 SM you get a guaranteed lifetime withdrawal benefit that provides income for you and your spouse (if elected), even if your account (cash) value should go to zero. Your benefit base will grow by a guaranteed 9% per year (your roll-up bonus credit) for 10 years (your roll-up bonus period) for an annual cost. The benefit base is the amount on which your lifetime income is calculated. The benefit base is not a cash or surrender value or death benefit and is not available as a lump sum. This feature means you ll know what your lifetime income will be, so you can make plans with real information. Fee Refund Feature This benefit also includes a unique fee refund feature. After 10 years (or less if the annuity s owner dies) 100% of rider fees paid (within the last 10 contract years) are eligible for a refund if: Lifetime income is never started, and No withdrawals of any kind (including required minimum distributions) are taken. The rider fee refund would be applied as follows: If you terminate the rider while eligible for the guaranteed lifetime withdrawal benefit rider fee refund, it would be applied to your account value (on your contract anniversary) or allocated to the fixed account (off contract anniversary). If you die while eligible for the fee refund, and spousal continuation is not available or elected, then the death benefit would be enhanced by the fee refund. Guaranteed lifetime withdrawal benefit to make your retirement income planning easier 6 Assured Income 7 SM Fixed Index Annuity

7 How the 9% Simple Interest Roll-up Can Help Your Future Income Grow Your Benefit Base $190,000 Dollars 9% Rollup each year $100,000 Initial Premium The chart is a hypothetical example of how the benefit base can grow under varying market/index conditions and is not meant to represent the performance of Delaware Life Assured Income 7 SM Fixed Index Annuity. Interest credited will be subject to caps and triggers. NOTE: This hypothetical example assumes no withdrawals or Required Minimum Distributions (RMDs) during the period shown. Annual Withdrawal Amount Age Benefit Base Payout Factor Annual Withdrawal Amount 60 $190, % $8, $190, % $9, $190, % $10, $190, % $11, $190, % $12, $190, % $13, Annual withdrawal amount based on $100,000 initial premium with 9% simple interest roll-up to benefit base after 10 years ($190,000). 7

8 Death Benefit If you die before you begin receiving annuity income payments, Assured Income 7 SM guarantees that your beneficiary will receive at least the account value (including all the interest you ve earned) and may avoid probate. How It Works Example 1: Bailout Triggered 3.8% Bailout Cap Bailout Endorsement S&P Point-to-Point with Cap Index Account 5.0% Issue rate 3.7% Renewal rate Your annuity comes with a bailout provision, that enables you to make full or partial withdrawals from the contract without a surrender charge or market value adjustment if the renewal cap for the S&P year point-to-point strategy is below the bailout cap rate. A cap is the maximum interest your FIA can earn in a year. See your disclosure statement for more details. No allocation to the index account is required to receive this bailout protection. This benefit is provided to the owner at no cost. Example 2: Bailout NOT Triggered 3.8% Bailout Cap S&P Point-to-Point with Cap Index Account 5.0% Issue rate 3.9% Renewal rate 8 Assured Income 7 SM Fixed Index Annuity

9 A Choice of Ways to Earn Interest, with Flexibility to Switch To diversify your sources of interest and growth opportunities, you may elect more than one strategy. Since your needs and goals may shift over time, you may change your interest options on each contract anniversary. (Please note. You are not actually purchasing shares or investing in any stock or index fund.) Fixed Account Amounts allocated to this option will be credited with an interest rate that is current on the date the contract is effective. Each year, Delaware Life will declare new interest rates to reflect current conditions, but never less than the minimum guaranteed rate. For those who want to know at the start of the year how much interest will be credited to your account value, this option may be appropriate. S&P 500 Index For those who want to earn interest based on the performance of the broad U.S. market, the S&P 500 Index option may be suitable. The Index is widely regarded as a premier benchmark for the domestic stock market. It contains stocks from 500 large, leading companies in various industries. The following crediting methods are available for the S&P 500 Index option: 1- Point-to-Point with Cap This method uses the S&P 500 Index value from only two points in time. On your contract anniversary, the beginning Index value is compared to the ending Index value. The percentage of change in the Index is calculated. How much interest you receive may depend on a cap. A cap is the maximum amount of interest your FIA can earn in a year. If the ending Index value is higher than the beginning Index value, you will receive indexed interest up to the Index cap. If the value is lower, you won t receive indexed interest, but your contract s value will be protected. 1- Performance Trigger The change in the S&P 500 Index value is calculated using two dates that are one year apart. The performance trigger credits funds at a fixed/declared rate based on a positive return of the Index. That rate is fixed regardless of the level of the Index s positive return. If the Index return is >0% on a 1-year point-to-point basis, your account will be credited a fixed return. For example, if the Index was 1% higher on the contract anniversary and the performance trigger rate was 4%, then your account would be credited 4%. In the event that the Index value at the end of the term is less than or equal to the Index value at the beginning of the term, your account would receive 0% interest, but it would never lose value. 1- Point-to-Point with Participation Rate This method uses the S&P 500 Index value from only two points in time. On your contract anniversary, the beginning Index value is compared to the ending Index value. The percentage of change in the Index is calculated. How much interest you receive depends on the participation rate that is a percentage of the gains achieved by the underlying index. For example, let s suppose that the index rose by 10%. If your FIA had a 75% participation rate, the contract would receive 7.5% in interest. Straightforward ways to grow your retirement money 9

10 Delaware Life Delaware Life is dedicated to supporting you with valuable, straightforward strategies that can help you save today and provide income for tomorrow. Delaware Life manages approximately 342,000 annuity, life insurance and corporate market insurance policies representing $37.9 billion in assets under management and $13.5 billion of invested assets as of March 31, The company was established with the purchase by Delaware Life Holdings, LLC (Delaware Life) of domestic U.S. annuity and certain life insurance businesses of Sun Life Financial Inc., whose record includes more than 40 years of experience in the annuity market. We are committed to sound financial and risk management practices on behalf of our clients. For the most recent independent credit ratings for Delaware Life Insurance Company, please see The Standard & Poor s 500 ( S&P 500 ) is a product of S&P Dow Jones Indexes LLC or its affiliates ( SPDJI ) and has been licensed for use by Delaware Life Insurance Company ( Delaware Life ). Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Delaware Life. Assured Income 7 SM is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500. Guarantees are backed by the financial strength and claims-paying ability of Delaware Life Insurance Company (Waltham, MA). Policies and contracts are issued by Delaware Life Insurance Company. For use with policy forms ICC15-DLIC-FIA-07, DLIC-FIA-07 or MS15-DLIC-FIA-07 and endorsement/rider forms ICC16-DLIC-GLWB-02, ICC15-DLIC-NHW, ICC15-DLIC-TIW and ICC16-DLIC-TBOUT. Policy and rider form numbers may vary by state. Products, riders and features may vary by state, and may not be available in all states. This material may not be approved in all states. Ask your financial professional for more information. Delaware Life Insurance Company is authorized to transact business in all states except New York, as well as in the District of Columbia, Puerto Rico and the U.S. Virgin Islands, and is a member of the Delaware Life group of companies. This brochure is a general description of the product. Please read your contract and disclosure statement for definitions and complete terms and conditions, as this is a summary of the annuity s features. This communication is for informational purposes only. It is not intended to provide, and should not be interpreted as individualized investment, legal or tax advice. To obtain such advice, please consult with your investment, legal or tax professional. 10 Assured Income 7 SM Fixed Index Annuity

11 Assured Income 7 SM Fixed Index Annuity Lifetime Income Options Guaranteed Interest Rates Protection of Your Principal Ask your financial professional how to get started. 11

12 Service Center: PO Box , Topeka, KS Sales Support: 844.DEL.SALE ( ) Customer Service: Delaware Life Insurance Company NOT FDIC/NCUA INSURED MAY LOSE VALUE NO BANK/CREDIT UNION GUARANTEE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY DLPC /17 EXP 06/18 AI GI 0002 CB (Revised 06/17)