Delaware Life Insurance Company, known for providing innovative annuity solutions, is making strides by partnering with BlackRock to offer a unique fixed indexed annuity that includes Bitcoin exposure. This new product taps into the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index, expanding investment options for those planning for retirement.
A fixed indexed annuity serves as a contract with an insurance company that combines growth potential linked to a market index while safeguarding the principal against losses. Interest credits are granted based on the performance of the selected index, although growth may be capped or subject to certain participation rates. These annuities typically allow the earnings to grow tax-deferred and can be converted into a reliable income stream during retirement.
In this collaboration, Delaware Life has incorporated the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index into three of its annuity products: Momentum Growth, Momentum Growth Plus, and DualTrack Income. This addition reflects the company's commitment to innovation in a rapidly changing retirement planning environment, ensuring both financial professionals and their clients have access to progressive investment options.
The blended benchmark from BlackRock combines US stocks and Bitcoin, strategically managing cash allocations to maintain a volatility level of 12%. Bitcoin exposure is made possible through the iShares Bitcoin Trust (IBIT), which stands as the largest Bitcoin ETF in terms of assets and liquidity.
BlackRock emphasizes that this launch responds to the rising demand for Bitcoin integration in retirement strategies, offering an avenue for insurance clients to diversify their portfolios while enjoying the principal protection that annuities typically provide. This approach aims to facilitate both participation in digital assets and preservation of underlying capital, supporting investors in their long-term financial goals.