Delaware Life TruMax 5 review

Yes, for the right buyer—but with a meaningful access constraint. TruMax 5 is a good accumulation FIA if you want a shorter surrender period, a guaranteed minimum growth floor, and flexible index crediting options. The GMAV feature is a real structural benefit that many 5-year FIAs don't include. The limitation is that it's only available through Truist's bank network, so unless you have that relationship, the product simply isn't on the table for you.

The main reason to buy TruMax 5 is accumulation with downside protection and a shorter commitment. Someone who wants their money to grow linked to indexes but can't stomach the possibility of losing ground—and doesn't want to lock up capital for 7 or 10 years—is the natural buyer. The GMAV adds a meaningful guarantee: even in a scenario where the account earns very little interest, the contract guarantees the value will be at least 115% of the initial premium by the fifth anniversary. That's not something many 5-year FIAs offer.

The Precision Portfolio option is a secondary draw for buyers who don't want to actively manage their index allocations. Choosing a preset, diversified allocation across S&P 500, Invesco QQQ, Morgan Stanley Global Opportunities, First Trust Capital Strength Barclays, and the fixed account takes the allocation decision off the table while bumping the GMAV floor to 118%.

I think TruMax 5 is best for a pre-retiree or early retiree in the 50s to early 70s who has a lump sum to protect, wants some index-linked growth potential, and prefers a 5-year commitment over longer alternatives. It's particularly well-suited to someone who appreciates a hard floor on account value growth—the GMAV is a nice safety net for conservative buyers who worry markets will underperform during the surrender period.

It's less attractive for someone who wants lifetime income now or in the near term (no GLWB), needs flexible access to large portions of their money (MVA applies to excess withdrawals), or doesn't bank with Truist.

You are not buying stock market participation. TruMax 5 is a principal-protected annuity that credits interest based on the performance of a chosen index—subject to caps or participation rates that limit how much of any index gain you actually capture. In a flat or declining market, your principal is protected; in a strong market, you'll capture a portion of the gain, not all of it. The GMAV adds a guaranteed minimum—so even if index performance is mediocre across all five years, the contract backstops the account value at 115% of what you put in. That's the real structural promise here.

TruMax 5 offers nine indexed strategies across four indexes plus a fixed account:

**S&P 500** — 1-year point-to-point with cap (current caps: 6.80% low band / 9.30% high band), participation rate strategy (40%/50%), and performance trigger (5.65%/7.40% declared rate if index is positive). A second cap strategy with a rate lock at issue locks in rates for the initial 5 years.

**Invesco QQQ ETF** — 1-year point-to-point with cap (6.15%/8.55%) and participation rate.

**First Trust Capital Strength Barclays 5% Index** — participation rate only (135%/150%).

**Morgan Stanley Global Opportunities Index** — participation rate only (115%/130%).

**Fixed Account** — 4.00%/4.55% current rate.

At renewal after each 1-year term, the insurer sets new caps and participation rates. The bailout provision protects you: if the S&P 500 cap renews below the contracted bailout cap, you can surrender without penalty.

The GMAV is the feature that separates TruMax 5 from many competing 5-year FIAs. Most accumulation FIAs only offer 0% floor protection—meaning you won't lose principal, but you also don't have a guaranteed minimum gain. TruMax 5 guarantees that at the 5th anniversary, your account value will be at least 115% of your initial premium (less proportional reductions for withdrawals). If you use a Precision Portfolio allocation and hold it through the surrender period, that floor rises to 118%.

This is a meaningful benefit in a scenario where market conditions are unfavorable throughout the 5-year window. It converts the typical "you won't lose" promise into "you'll at least grow by a minimum amount."

In year 1, you can withdraw up to 5% of total premiums penalty-free. Starting in year 2, you can withdraw up to 10% of the last contract anniversary value without charges. Amounts above those thresholds are subject to the surrender charge schedule (8%, 8%, 7%, 6%, 5%, then 0%) and a market value adjustment that reflects prevailing interest-rate conditions. Surrenders during rising-rate environments can result in a negative MVA, meaning you'd receive less than the stated surrender value.

Important exceptions: RMDs larger than the free withdrawal amount are exempt from charges; a bailout provision waives charges if the S&P 500 renewal cap falls below a specified floor; and nursing home or terminal illness waivers allow charge-free access after 1 year of contract ownership (subject to eligibility and state availability).

There are no explicit annual fees—no mortality and expense charge, no product fee, no administration charge. The GMAV and no-cost waivers are included without added cost.

The tradeoffs are structural. Caps and participation rates limit upside in strong markets. The performance trigger strategy pays a declared rate only if the index is positive—in flat or slightly up markets it performs well, but in strong bull markets you may underperform a higher-cap strategy. The First Trust and Morgan Stanley indexes include embedded index costs that affect how much interest is ultimately credited, even when those indexes show positive returns. The MVA is a real risk on large withdrawals before surrender charges expire. And the bank channel means this product isn't available through most independent distribution.

Delaware Life Insurance Company (Zionsville, IN) was established in 1971 and rebranded in 2013. The company has a significant historical claim: it launched the first fixed index annuity—Keyport Key Index—in 1995. Today Delaware Life operates under the Group 1001 holding company. Financial strength ratings as of late 2024: A.M. Best A- (Excellent, 4th of 16 ratings), S&P Global Ratings A- (Stable, 7th of 21 ratings), and Fitch A- (Strong, 7th of 19 ratings). The company is authorized in all states except New York, DC, Puerto Rico, and the U.S. Virgin Islands.