Delaware Life Introduces Cryptocurrency-Backed Annuity Innovations

Delaware Life has introduced a groundbreaking addition to its fixed indexed annuity offerings by incorporating the BlackRock US Equity Bitcoin Balanced Risk 12% Index. This move marks a first in the insurance industry, merging cryptocurrency exposure with fixed indexed annuities (FIA) and setting a new standard for innovation in financial products.

FIAs aim to protect the policyholder's principal while offering interest based on a market index, with specific limits on potential gains. The newly introduced index integrates the iShares Core S&P 500 ETF and the iShares Bitcoin Trust ETF, targeting 12% volatility balanced through a cash component for risk management. This ensures that while policyholders gain access to Bitcoin exposure, they do not need to manage the digital asset directly, preserving the traditional principal protection of FIAs.

Collaborative Innovation and Market Trends

The collaboration between Delaware Life and BlackRock represents a significant step for regulatory compliance requirements, allowing financial professionals and their clients to explore growth opportunities while maintaining underlying protection. Colin Lake, President & CEO of Delaware Life Marketing, emphasizes this as a major advancement in retirement planning. Meanwhile, Robert Mitchnick of BlackRock underscores the strategy as a response to the steady demand for cryptocurrency exposure within familiar financial products, ensuring that annuity buyers have the downside security they expect.

This innovative index option is now accessible in three Delaware Life products—Momentum Growth, Momentum Growth Plus, and DualTrack Income. The partnership highlights the financial industry's ongoing efforts to include cryptocurrency exposure within regulated products, mirroring broader market trends and rising investor interest in diversifying retirement portfolios with digital assets.