[aj_hero title=”Best Annuity Rates in Delaware (2026)” breadcrumb=”Rates / Delaware”]
Delaware punches above its weight for retirees. The state’s $12,500 annual retirement income exclusion for residents age 60 and older shields a meaningful portion of annuity income from state tax – and married couples can double that to $25,000. Combined with top MYGA rates above 5.50% from A-rated national carriers, Delaware residents have solid options for building guaranteed retirement income.
The rate table below shows today’s best MYGA rates available to Delaware residents from A-rated carriers, updated daily.
2-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Axonic Insurance | Waypoint 2 MYGA | 5.00%Top Rate | 2 yr | $100,000 | 10% | |
| GBU Life | Asset Guard Select 2 | 4.95% | 2 yr | $25,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 2 | 4.95% | 2 yr | $70,000 | 10% | |
| Mass Mutual | Premier Voyage 2 | 4.05% | 2 yr | $1,000,000 | 10% |
3-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 3 (Simple Interest) SI | 5.60%Top Rate | 3 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 3 MYGA | 5.45% | 3 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 3 (Simple Interest) SI | 5.40% | 3 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 3 With Liquidity (Simple Interest) SI | 5.40% | 3 yr | $100,000 | 10% | |
| Athene IA | Athene Max Rate 3 (state specific) | 5.10% | 3 yr | $100,000 | Interest Only | |
| Midland National Life | MNL Guarantee Pro 3 | 5.05% | 3 yr | $100,000 | Interest Only | |
| Oceanview Life and Annuity | Harbourview 3 | 5.05% | 3 yr | $70,000 | 10% | |
| North American Company | NAC Guarantee Plus 3 | 5.00% | 3 yr | $100,000 | Interest Only |
4-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 4 | 5.20%Top Rate | 4 yr | $70,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 4 | 5.10% | 4 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 4 | 5.05% | 4 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 4 | 5.00% | 4 yr | $10,000 | 10% | |
| GBU Life | Asset Guard Select 4 | 4.95% | 4 yr | $25,000 | 10% | |
| Mass Mutual | Premier Voyage 4 | 4.90% | 4 yr | $1,000,000 | 10% | |
| Corebridge Financial | Corebridge Pathway Choicesm Fixed 4 Annuity | 4.80% | 4 yr | $100,000 | 10% | |
| Mass Mutual | Stable Voyage 4 | 4.80% | 4 yr | $100,000 | 10% |
5-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 5 (Simple Interest) SI | 6.30%Top Rate | 5 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 5 (Simple Interest) SI | 5.90% | 5 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 5 With Liquidity (Simple Interest) SI | 5.90% | 5 yr | $100,000 | 10% | |
| Axonic Insurance | Waypoint 5 MYGA | 5.70% | 5 yr | $100,000 | 10% | |
| Americo | Platinum Assure 5 | 5.45% | 5 yr | $25,000 | 5% | |
| Liberty Bankers Life | Heritage Elite 5 | 5.40% | 5 yr | $10,000 | 0% | |
| Nationwide Life Insurance Company | Secure Growth 5 MVA | 5.40% | 5 yr | $100,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 5 | 5.35% | 5 yr | $250,000 | 10% |
6-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 6 | 5.55%Top Rate | 6 yr | $20,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 6 | 5.50% | 6 yr | $70,000 | 10% | |
| Clear Spring Life | Preserve MYGA 6 | 5.25% | 6 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 6 | 5.20% | 6 yr | $10,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 5.15% | 6 yr | $1,000,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 6 | 4.80% | 6 yr | $100,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 6 | 4.65% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 4.45% | 6 yr | $100,000 | 15% |
7-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 7 (Simple Interest) SI | 6.50%Top Rate | 7 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 7 (Simple Interest) SI | 6.15% | 7 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 7 With Liquidity (Simple Interest) SI | 6.15% | 7 yr | $100,000 | 10% | |
| Americo | Platinum Assure 7 | 5.50% | 7 yr | $25,000 | 5% | |
| Aspida | Synergy Choice 7 | 5.50% | 7 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 7 MYGA | 5.50% | 7 yr | $100,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 7 | 5.45% | 7 yr | $250,000 | 10% | |
| Athene IA | Athene Max Rate 7 (state specific) | 5.45% | 7 yr | $100,000 | Interest Only |
8-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Clear Spring Life | Preserve MYGA 8 | 5.25%Top Rate | 8 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 8 | 5.20% | 8 yr | $20,000 | 10% | |
| Pacific Guardian Life | Diamond Head 8 | 5.20% | 8 yr | $10,000 | 10% | |
| Guaranty Income Life | Guaranty Rate Lock 8 | 4.10% | 8 yr | $100,000 | 5% |
9-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Liberty Bankers Life | Heritage Elite 9 | 5.50%Top Rate | 9 yr | $10,000 | 0% | |
| Liberty Bankers Life | Heritage Premier 9 | 5.45% | 9 yr | $10,000 | Interest Only | |
| Liberty Bankers Life | Heritage Premier Plus 9 | 5.35% | 9 yr | $10,000 | Interest Only | |
| Clear Spring Life | Preserve MYGA 9 | 5.25% | 9 yr | $100,000 | 10% | |
| Liberty Bankers Life | Heritage Classic 9 | 5.25% | 9 yr | $10,000 | 10% | |
| Pacific Guardian Life | Diamond Head 9 | 5.20% | 9 yr | $10,000 | 10% | |
| Securian Financial | SecureOption Choice 9 | 5.20% | 9 yr | $500,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 9 | 5.10% | 9 yr | $20,000 | 10% |
10-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 10 | 5.65%Top Rate | 10 yr | $70,000 | 10% | |
| Axonic Insurance | Waypoint 10 MYGA | 5.50% | 10 yr | $100,000 | 10% | |
| Royal Neighbors of America | MYGA 10 Year | 5.50% | 10 yr | $100,000 | Interest Only | |
| American National Insurance Company | Palladium MYG Annuity 10 | 5.30% | 10 yr | $250,000 | 10% | |
| Reliance Standard Life | Reliance Guarantee - 10 | 5.30% | 10 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 10 | 5.25% | 10 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 10 | 5.20% | 10 yr | $10,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 10 | 5.15% | 10 yr | $20,000 | 10% |
Rates shown are for informational purposes only and subject to change without notice. Only carriers rated A− or better by AM Best are included. Products marked SI use simple interest — the effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity broker before purchasing.
- Delaware residents age 60 and older can exclude up to $12,500 of retirement income – including annuity withdrawals – from state income tax each year. Married couples filing jointly can each claim the exclusion, sheltering up to $25,000 per year.
- The Delaware Life and Health Insurance Guaranty Association protects annuity cash values up to $250,000 per person, per insurer if a licensed carrier becomes insolvent.
- Delaware’s graduated state income tax runs from 2.2% to 6.6% – but the retirement exclusion means most retirees owe little to nothing on annuity income from a properly sized contract.
- Delaware has no estate tax and no inheritance tax. Annuity death benefits pass directly to named beneficiaries outside of probate.
- Delaware requires a minimum 10-day free-look period on all annuity contracts. You can return any policy for a full premium refund within that window.
Are Fixed Annuities a Good Choice in Delaware?
For Delaware retirees, fixed annuities offer guaranteed growth, tax-deferred accumulation, and a state retirement exclusion that can significantly reduce the tax bill on withdrawals. The combination is hard to match with CDs or taxable bond funds.
Consider Frank, age 63, in Wilmington. He has $150,000 in a bank CD paying 3.80%. He moves it into a 5-year MYGA at 5.25%. At maturity, his account reaches approximately $193,472 – a guaranteed gain of $43,472 without any market risk. Delaware’s $12,500 retirement income exclusion shelters a portion of those annual withdrawals from state tax, while the growth itself deferred all these years is never taxed until withdrawal. Frank’s all-in tax burden is meaningfully lower than if he held a CD generating annual 1099 interest throughout.
Delaware has no estate tax and no inheritance tax at the state level. When Frank passes, his named annuity beneficiary receives the contract value without going through probate and without a Delaware estate tax bill.
Delaware Guaranty Association: How Your Annuity Is Protected
The Delaware Life and Health Insurance Guaranty Association protects Delaware policyholders if a licensed insurance carrier becomes insolvent. Coverage is automatic – you do not enroll separately and pay nothing extra beyond your premium.
| Coverage Type | Delaware Protection Limit |
|---|---|
| Annuity cash value | $250,000 per person, per insurer |
| Life insurance death benefit | $300,000 per person, per insurer |
| Life insurance cash value | $100,000 per person, per insurer |
| Multiple policies at same insurer | Combined, subject to the limits above |
If you plan to place more than $250,000 in annuities, split the funds across two or more A-rated carriers. Each insurer has its own separate $250,000 limit, so $500,000 divided equally between two carriers is fully covered.
Delaware Life and Health Insurance Guaranty Association
Website: delawareiga.com
How Delaware Taxes Annuity Income
Delaware taxes income at graduated rates from 2.2% to 6.6%. For retirees, the $12,500 annual retirement income exclusion reduces or eliminates that state tax on annuity withdrawals. Here is how different annuity types are treated.
| Annuity Type | Delaware Tax Treatment | Exclusion Available |
|---|---|---|
| Non-qualified (after-tax funds) | Gain portion taxed at state income tax rates | Up to $12,500 for age 60+ |
| Qualified (IRA / 401(k) rollover) | 100% of each distribution is taxable income | Up to $12,500 for age 60+ |
| Roth IRA annuity | Qualified distributions are fully tax-free federally and at state level | N/A |
| 1035 Exchange | No state or federal tax triggered on the exchange itself | N/A |
The $12,500 exclusion applies to total retirement income – Social Security, pension, and annuity income combined count toward the cap. For a married couple filing jointly, each spouse claims a separate $12,500 exclusion, for a combined $25,000 of tax-free retirement income per year. Withdrawals before age 59½ trigger a 10% federal early withdrawal penalty on top of ordinary federal and state income tax.
Delaware Department of Insurance
The Delaware Department of Insurance licenses all insurance carriers and agents operating in Delaware and enforces state insurance laws. Before buying an annuity, confirm that the carrier is licensed in Delaware and that your agent holds an active Delaware life insurance license.
| Contact | Details |
|---|---|
| Agency | Delaware Department of Insurance |
| Consumer helpline | 1-800-282-8611 |
| Website | insurance.delaware.gov |
| License lookup | Available at insurance.delaware.gov |
Tips for Buying an Annuity in Delaware
- Plan withdrawals after age 60: Delaware’s $12,500 retirement income exclusion starts at 60. Buying a MYGA in your late 50s and deferring withdrawals until you reach 60 maximizes the tax benefit.
- Coordinate the exclusion with all retirement income: Social Security and pension income count toward your $12,500 cap alongside annuity withdrawals. If other income already consumes the exclusion, annuity withdrawals will be taxed at Delaware state rates. Plan the sequence of withdrawals accordingly.
- Use an independent broker, not a captive agent: Independent brokers can shop 20+ carriers for the best rate. Captive agents sell only their own company’s products and cannot compare the market for you.
- Cap exposure at $250,000 per carrier: Spread larger investments across multiple A-rated insurers to stay fully within the guaranty fund limit at each company.
- Use the 10-day free-look period: Read the entire contract before the free-look window closes. Focus on the surrender charge schedule, any market value adjustment provisions, and exactly when and how withdrawals can be taken penalty-free.
Frequently Asked Questions
Does Delaware tax annuity income?
Delaware taxes annuity income at its graduated rates of 2.2% to 6.6%, but residents age 60 and older may exclude up to $12,500 of total retirement income from state taxable income each year. Married couples filing jointly can each claim a separate $12,500 exclusion, sheltering up to $25,000 per year. For retirees with modest annuity income, the state tax bill is often zero or very small.
What is the best annuity rate in Delaware right now?
As of 2026, top MYGA rates available to Delaware residents from A-rated carriers range from approximately 4.50% to 5.50% depending on term. Five-year terms generally offer the best balance of rate and liquidity. The rate table above shows current figures updated daily from the national market.
How much does the Delaware Guaranty Association cover?
The Delaware Life and Health Insurance Guaranty Association covers up to $250,000 in annuity cash values per person, per insurance company. If you have more than $250,000 to invest in annuities, divide funds across two or more A-rated carriers – each gets its own separate $250,000 limit.
Who regulates annuities in Delaware?
The Delaware Department of Insurance licenses and regulates all insurance carriers and agents in the state. Verify carrier licenses, check agent credentials, and file complaints at insurance.delaware.gov or by calling 1-800-282-8611.
What is the free-look period for annuities in Delaware?
Delaware law requires a minimum 10-day free-look period on all annuity contracts. During that window, you can return the contract for a full refund of your premium with no surrender charges applied. Some carriers voluntarily extend the period to 20 or 30 days, particularly for older buyers.