Delaware Life Launches Innovative Bitcoin-Linked Annuity

Delaware Life Brings Bitcoin Into the FIA Conversation (Without Putting Principal on the Line)

Fixed indexed annuities have always lived in a familiar lane for most carriers and distributors: principal protection, tax deferral, and index-linked crediting built around mainstream benchmarks and volatility-controlled strategies. This week, Delaware Life nudged that lane wider.

The company announced a new fixed indexed annuity (FIA) crediting option tied to the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index, marking what Delaware Life describes as the first time a U.S. insurance carrier has added an index that includes cryptocurrency exposure inside an FIA lineup. (Insurance News Network)

At a moment when advisors are hearing “crypto” questions from more clients than they did even a year ago, the move is less about chasing headlines and more about packaging a new kind of exposure in an old insurance wrapper: defined downside at the contract level, with controlled, rules-based participation on the upside.

“We’re proud to partner with BlackRock as the first insurance carrier to offer cryptocurrency exposure through a fixed index annuity.”
Colin Lake, President & CEO, Delaware Life Marketing (Crypto Briefing)

What’s Actually New Here

The index itself is worth understanding, because it is not “Bitcoin in an annuity” in the way many people will assume at first glance.

BlackRock’s U.S. Equity Bitcoin Balanced Risk 12% Index is built to provide exposure to:

• U.S. equities (via iShares Core S&P 500 ETF), and

• Bitcoin (via iShares Bitcoin Trust ETF, IBIT),

…while managing to a 12% target volatility by using a cash component to dial risk up or down. In plain terms, it’s designed to reduce how wild the ride can get compared with holding Bitcoin exposure outright. (BlackRock)

Delaware Life is offering this index-linked crediting option across three FIA products: Momentum Growth, Momentum Growth Plus, and DualTrack Income. (Insurance News Network)

A Quick Refresher: FIA Mechanics Still Apply

Even with a Bitcoin-inclusive index, the core FIA proposition stays the same:

• Principal is protected from market losses (subject to product terms and any surrender charges).

• Interest crediting is tied to index performance, but the client typically does not receive dividends and is usually subject to caps, spreads, or participation rates.

• If the linked index is down for the crediting period, the credited interest can be zero, rather than negative.

So the client is not “investing in Bitcoin” directly. They are choosing a crediting strategy whose index happens to include a Bitcoin sleeve. (delawarelife.com)

“As the retirement-planning landscape evolves, we’re continuously and thoughtfully innovating to meet the needs of financial professionals and their clients.”
Colin Lake, President & CEO, Delaware Life Marketing (Crypto Briefing)

Why This Matters for the Industry (Beyond the Press Release)

Most life insurers have approached crypto cautiously, often focusing on blockchain as plumbing rather than crypto as an exposure. But the distribution reality is changing: advisors are increasingly asked to address digital assets, and the “regulated vehicle” route has gained credibility since spot Bitcoin ETFs arrived and scaled.

IBIT, the Bitcoin ETF used in the index construction, has become a centerpiece of that regulated-access narrative. (BlackRock)

For carriers and IMOs, Delaware Life’s move is a case study in how crypto exposure can be introduced without rewriting the entire risk playbook. The contract still behaves like an FIA. The index sleeve is the innovation, not the chassis.

The Index at a Glance

(BlackRock)

The Advisor Conversation This Unlocks

This kind of crediting option will almost certainly show up in retirement conversations where clients want a “toe in the water” approach. The framing shifts from “Should we buy Bitcoin?” to something more familiar to the annuity world: “Should we use a crediting strategy that includes a small, risk-managed Bitcoin sleeve?”

Here is where a single, disciplined bullet section can help producers stay consistent.

Talking Points for Producers (One Bullet Section)

• Position it as index design, not direct crypto ownership: the exposure is inside the index and accessed through an ETF, while the FIA remains an insurance contract. (BlackRock)

• Lead with risk controls: the index targets 12% volatility using a cash allocation, aiming to reduce the whiplash clients associate with Bitcoin. (BlackRock)

• Keep expectations grounded: upside is still governed by the product’s crediting terms, and “down years” can mean zero credited interest, not losses. (delawarelife.com)

• Treat suitability like any other FIA decision: the new option may fit a portion of a broader plan, not the whole plan.

What to Watch Next

If this index option gains traction, it will likely influence product development in two directions.

First, more “alternative-inclusive” indexes could enter FIA shelves, packaged in volatility-targeted formats that feel familiar to compliance and risk teams. Second, distributors may push for clearer education around what clients are actually getting: not Bitcoin custody, not wallet risk, and not direct participation, but a rules-based index that blends equity beta with ETF-based Bitcoin exposure.

Delaware Life has put a marker down. Now the question for the industry is simple: is this a one-off differentiator, or the beginning of a new standard menu item in FIA crediting strategies? (Insurance News Network)