Delaware Life PrimeStart Bonus 10 review

It depends on the buyer's time horizon. For someone who can commit to 10 years, the 14% bonus is a genuine advantage—it gives more principal working inside the index-linked crediting strategies from day one. For someone who might need a meaningful withdrawal before year 11, the combination of surrender charges, MVA, and bonus recapture makes this a costly mistake. The product is well-designed for its target buyer; it is simply a very specific buyer.

The primary reason to buy PrimeStart Bonus 10 is the 14% bonus on initial premium. For a $100,000 deposit, that is $14,000 of additional credited value on day one. The secondary reason is the Lowest Starting Index Value feature, which uses the lowest daily index level from the first 90 days as the starting point—reducing the risk that your money is applied at a temporary market high. Together, these two features give the accumulation-focused buyer a structural head start compared to a standard FIA without a bonus.

I think this product works best for buyers in their late 50s to early 70s who are using a dedicated retirement allocation they are confident will not need to be touched for a decade. It is a particularly good fit for someone rolling over a lump sum from a 401(k) or pension who wants to protect principal and give the money a starting boost before they begin drawing income through annuitization or RMDs.

It is less appropriate for someone who is already in active retirement and may need flexible access to principal, or for someone who wants a built-in guaranteed withdrawal benefit. There is no income rider here—if you want guaranteed lifetime income at a fixed benefit base, you need a different product.

You are buying principal protection plus an upfront boost, in exchange for a 10-year liquidity commitment. The bonus gives you a larger starting base inside the contract, but it is not unconditional money—it is subject to recapture if you exit early. The index-linked crediting strategies give your money the potential to grow based on index performance without direct market exposure. What you are not buying is flexibility, an income guarantee, or short-term access to your full balance.

The 14% premium bonus is applied to all premium payments received within the first 60 days of contract issue. On a $100,000 deposit, that brings the account starting value to $114,000 before any index crediting begins.

The bonus is subject to a recapture schedule: if you withdraw more than the free amount or annuitize before the end of the 10-year period, a portion of the bonus is returned to the carrier. In year one, 98% of the bonus is recaptured on excess withdrawals; by year six, 52% is still recaptured; recapture only reaches zero in year 11 and beyond. The vesting schedule tracks similarly—the bonus is effectively not yours free and clear until the surrender period ends.

The second built-in feature—Lowest Starting Index Value—uses the lowest daily closing value of the elected index during the first 90 days of the contract as the initial index value for the first term. This means if the market dips in your first three months, your starting point benefits from that dip, giving you a better entry position than if the contract had used the index value on the day of issue.

The Lowest Starting Index Value is more than marketing language—it is a structural benefit that addresses a real timing risk. Many buyers have experienced the frustration of starting an index-linked contract right before a market pullback and then watching the index recover without receiving credit because their starting value was set at the top. This feature eliminates that specific risk for the first year.

In the brochure's own historical example, using the June 2022 S&P 500 start date, the feature shifted the effective starting index value from 4,101 to 3,667—a difference that produced a 7.00% net return versus 2.92% in a period where the index actually ended higher than it started.

This is a 10-year commitment. The standard withdrawal-charge schedule starts at 9% in year one and steps down to 1% in year 10. An MVA can also apply to withdrawals above the free amount during the entire 10-year period, which means your effective exit cost can be more than just the percentage shown.

Free withdrawals are limited to 10% of total premiums paid in year one, and to the greater of 10% of the prior anniversary account value or the required RMD amount in subsequent years. Both options are free of surrender charges, MVA, and bonus recapture.

Exceptions exist: if you are confined to a hospital or nursing facility for at least 90 days after the first anniversary (and purchased before age 76), you can take a one-time surrender-charge-free withdrawal. Terminal illness allows a similar one-time withdrawal after one year. RMDs in excess of the free withdrawal amount can also be taken without a charge. These waivers provide some flexibility in genuine hardship situations, but they do not change the fundamental nature of this as a long-term commitment.

The base contract has no explicit annual product fee, which is a genuine positive. The structural tradeoffs are the caps and participation rates that limit upside, the 10-year surrender period, and the bonus recapture schedule.

If you elect Enhanced Index Account options, there is an additional 1.00% annual fee calculated on the associated index account value, deducted at the end of each term. The enhanced accounts offer higher caps or participation rates in exchange. Whether that trade works in your favor depends on actual index performance.

The fixed account rate is currently 2.85% (below $100,000) or 3.10% ($100,000 or more). The S&P 500 annual cap in the standard account is approximately 4.50% (below $100,000) or 5.50% ($100,000 and above), with higher caps available through the enhanced account option. The participation-rate strategies on the proprietary indexes range broadly—Goldman Sachs Canopy at 75–80%, Franklin SG Select at 120–160% (with a knockout provision).

There is no income rider, and the death benefit is simply the greater of account value or surrender value.

Delaware Life Insurance Company (Zionsville, IN) is one of the older players in the fixed index annuity market—the company claims to have introduced the first FIA product in 1995 under the Keyport Life banner. The carrier is part of Group 1001. Financial strength ratings as of mid-2025 are A- from A.M. Best (Excellent, 4th highest of 16 ratings), A- from S&P Global (7th of 21), and A- from Fitch (7th of 19). These are solid ratings for a specialty annuity carrier, suggesting an ability to meet policyholder obligations, though they are not at the very top tier. The carrier is authorized in all states except New York.