Delaware Life Growth Pathway 5 review

Yes, for the right buyer. Growth Pathway 5 is a good annuity for someone who wants a 5-year principal-protected accumulation vehicle with a meaningful contractual growth guarantee built in. It is not a good annuity for someone whose priority is guaranteed income in retirement — there is no rider for that purpose here, and you would need to look at a different product.

The primary reason to buy Growth Pathway 5 is accumulation with a meaningful floor. Most FIAs offer downside protection informally — your account just does not go below what you put in. Growth Pathway 5 goes a step further: it guarantees your account value will be at least 115% of premium at the 5-year anniversary, regardless of index performance. That is more than just principal protection; it is a minimum return guarantee. The secondary reason is flexibility: the crediting menu includes S&P 500, Invesco QQQ ETF, Janus Henderson, First Trust, Franklin, and Barclays strategies, so buyers who have preferences among those indices have real choices.

I think Growth Pathway 5 is best for a buyer in their 50s or early 60s who wants to position a portion of their savings in something that can grow with the market but cannot lose ground. The 5-year surrender window is short enough that this product does not feel like a permanent lockup. The GMAV makes it particularly appealing for buyers who are skeptical about FIA performance — they have a contractual backstop if the indices disappoint. It is less appealing for buyers who need income now, buyers who are primarily interested in life insurance-style death benefits, or buyers who expect to access principal within the surrender period.

You are buying a structured accumulation vehicle with a hard floor guarantee and market-linked upside. You are not buying direct stock market participation — no dividends, no full index gain, and upside is shaped by caps or participation rates depending on which strategy you choose. What the product delivers is a combination: index-linked growth potential plus a contractual guarantee that your account will not simply tread water for five years. That is a meaningfully different proposition from a plain vanilla MYGA or a standard FIA without a GMAV.

Growth Pathway 5 credits interest using annual point-to-point strategies. At the end of each crediting term year, the product compares the index value now to what it was at the start of the year. If it is up, you get credited — subject to a cap, participation rate, or performance trigger depending on your chosen strategy. If it is down, you get zero, but you do not lose previously credited interest.

The S&P 500 strategies available include point-to-point with cap (three banding tiers), performance trigger (which pays a declared rate any time the index is positive, regardless of how positive), and a point-to-point with participation rate. The Invesco QQQ ETF follows a similar pattern. The risk-managed indices — Janus Henderson, First Trust Capital Strength / Barclays, and Franklin SG Select Advantage — use participation rate strategies with their own volatility-management mechanics baked into the index design.

Buyers can also select Precision Portfolios: preset multi-index allocations that combine several of these strategies in fixed percentages. Precision Portfolio holders qualify for Enhanced GMAV at 118% instead of 115%.

The GMAV is the secondary feature that I think buyers are most likely to underestimate. Most people shopping FIAs understand that their principal is protected. Fewer understand that a GMAV is meaningfully different. If you put in $100,000 and markets produce low or flat returns for five years, a standard FIA might return $100,000 at the end of year five. Growth Pathway 5 guarantees at least $115,000 — or $118,000 with a Precision Portfolio. That is not just protection; it is a floor on performance. In a flat-return environment, that distinction matters significantly.

The bailout provision is also worth noting. If the S&P 500 cap rate at renewal falls below the contractual bailout cap, you can surrender the contract without surrender charges or MVA. That is a meaningful protection against rate degradation over the surrender period.

The standard 5-year surrender schedule is 9%, 8%, 7%, 6%, 5%, then 0%. California has slightly higher charges (9.2% in year one). A Market Value Adjustment applies to withdrawals above the free withdrawal amount and can be positive or negative depending on interest rate movements — if rates have risen since you bought, the MVA works against you on top of the surrender charge.

Free withdrawal provisions are 10% of total premiums in the first year, and from year two onward, the greater of 10% of the prior anniversary account value or the RMD amount. Required minimum distributions are specifically exempt from surrender charges and MVA, which is an important practical detail for IRA owners.

Nursing home and terminal illness waivers are available, subject to issue age limits (76 for nursing home waiver, 70 for terminal illness waiver). These waivers are one-time, not recurring.

There are no product-level fees, no mortality and expense charges, no annual contract fees, and no rider fees — because there is no rider. The real cost of the product is the interest rate structure: caps and participation rates limit how much of the index gain you actually receive. The risk-managed indices carry their own embedded costs within the index construction, which affects how much interest they generate relative to the raw index.

The MVA is a structural tradeoff that buyers often overlook. It is not a fee per se, but it can add real cost to early withdrawals in a rising-rate environment. Buyers who may need the money before year five should weigh that carefully.

| Feature | Details |

| :--- | :--- |

| Product type | Fixed Index Annuity (FPDA) |

| Issue ages | 18–85 |

| Minimum premium | $10,000 qualified and nonqualified |

| Surrender schedule | 9%, 8%, 7%, 6%, 5%, 0% (5-year standard) |

| Free withdrawal | 10% of premiums yr 1; 10% of AV or RMD (greater) yrs 2+ |

| Income rider | Not available |

| GMAV | 115% of premium at 5th anniversary; 118% with Precision Portfolio |

| Crediting strategies | 10 indexed (S&P 500, QQQ, Janus Henderson, First Trust, Franklin); 1 fixed |

| Fixed account rates | 4.00% / 4.30% / 4.55% (banded by premium; rates as of April 2026) |

| Market value adjustment | Yes — applies to excess withdrawals and surrenders |

| Bonus | None |

| Death benefit | Greater of account value or surrender value |

| Waivers | Nursing home, terminal illness (subject to age/state limits) |

| State availability | All states except New York; CA variation available |

| Policy form | ICC22-DLIC-FIA |

Delaware Life Insurance Company is headquartered in Zionsville, Indiana, and launched the first fixed index annuity in 1995 under its predecessor Keyport Life — a fact the company rightly points to as institutional credibility. As of late 2024, the carrier holds A- ratings from A.M. Best (Excellent, 4th of 16), Standard & Poor's (7th of 21), and Fitch (7th of 19). That triple A- combination is a solid financial strength profile for a mid-size annuity carrier and represents genuine stability rather than marketing positioning. Delaware Life distributes through independent broker-dealers and bank channels and is not available in New York.