American Legacy Series B-Share (NY) review

It depends on what you want it to do. As a tax-deferred way to hold market investments with an optional income or death-benefit guarantee, it is a reasonable, mainstream choice for a New York resident who has already maxed out other tax-advantaged accounts. As a standalone accumulation vehicle with no rider, it is harder to defend, because the 1.25% base charge and subaccount expenses eat into returns you could often keep in a lower-cost brokerage account.

The rational reason to buy this is the combination of tax deferral and optional guarantees in one contract. You can invest in equity and bond subaccounts, let gains compound without annual taxation, and later decide whether to activate a lifetime-income rider or pay for an enhanced death benefit. For a New York investor who wants market participation but also wants the option of a guaranteed income floor down the road, having both inside one wrapper is convenient. The i4LIFE approach in particular appeals to people who want annuitized income while keeping some market exposure rather than locking into a fixed payout.

I think this is best for a New York resident in their 50s or 60s, comfortable with market risk, who has already used up tax-advantaged space elsewhere and wants tax-deferred growth with the option to add lifetime income or a death-benefit guarantee later. It works for both qualified and non-qualified money, though the tax deferral matters more for non-qualified dollars. It is a poor fit for anyone who wants principal protection, anyone uncomfortable watching the account value drop in a down market, or anyone who would never use the riders — those buyers are paying for a structure they do not need.

Strip away the brand language and this is a tax-deferred investment account with insurance features attached. Your money goes into the subaccounts you select, and the account value tracks those funds directly — there is no cap, no participation rate, and no floor. The "annuity" part is the tax deferral plus the optional guarantees: a lifetime-income rider, an income-style annuitization feature, and optional death benefits. The base contract charges 1.25% a year (1.15% mortality and expense plus 0.10% administration) just to own the wrapper, and the funds themselves cost another 0.72% to 1.15%. Everything above that is optional rider cost. So you are really buying a platform, and its worth depends on which of those optional pieces you actually use.

The core of this contract is the subaccount lineup — 36 variable investment options spanning equity, bond, and asset-allocation strategies, with net fund expenses running 0.72% to 1.15% (data as of 5/1/2026). You allocate your premium across these subaccounts, and your account value moves with their performance, up or down. There is also a dollar-cost-averaging feature with three fixed-rate options (3.00% on three-, six-, and twelve-month schedules) that lets you move money into the market gradually rather than all at once. There is no indexed or fixed crediting account for long-term holding — the DCA rates apply only during the transfer period. The contract allows 12 free transfers per year between subaccounts, which is enough for most investors to rebalance without extra cost.

The optional living benefits are the reason most people would choose a variable annuity over a plain brokerage account. The Lincoln Market Select Advantage GLWB offers a guaranteed lifetime withdrawal benefit with a 5.00% simple-interest roll-up on the benefit base for up to 10 years (or to age 85), at a current fee of 1.50% (2.25% maximum) charged quarterly on the benefit base, with a 1.60% current charge for joint coverage. Separately, the i4LIFE Advantage GMIB takes an income approach built around variable annuitization at a 0.40% current and maximum charge on account value, and it includes an Annual Persistency Bonus credited to account value if the Access Period runs 20-plus years and the policy meets a threshold ($500K earns 0.10%, $1M earns 0.20%) — note this is a benefit credited to account value, not a benefit-base bonus on the income side. These riders are what differentiate the product; without one of them, you are mostly paying for tax deferral.

The surrender charge starts at 7% and declines over seven years (7%, 7%, 6%, 6%, 5%, 4%, 3%) before reaching zero. There is no market value adjustment on this New York contract, which removes one layer of unpredictability that many fixed and indexed annuities carry. You can withdraw the greater of 10% of account value or 10% of premiums paid each year without a surrender charge, and that access is available immediately rather than after the first year. The contract also waives surrender charges for nursing home confinement, terminal illness, and disability. Required minimum distributions are accommodated, and the $35 annual contract fee is waived at $100,000 or more and goes away entirely after 15 years. As an FPDA (flexible premium deferred annuity), it accepts additional premium only in the first 90 days. Even with the relatively short 7-year schedule, this is still a long-term contract, not a place for money you may need in the first few years.

The base cost is 1.25% a year — 1.15% mortality and expense plus 0.10% administration — before you pay for anything else. On top of that, the subaccounts cost 0.72% to 1.15%, so a no-rider contract already runs roughly 2% all-in depending on fund choice. Add the GLWB and you are paying another 1.50% (current) on the benefit base; add an optional guaranteed death benefit and you pay 0.30% (Enhanced) or 0.50% (Guarantee of Principal) on account value; the i4LIFE GMIB adds 0.40%. A fully loaded contract with a living benefit and an enhanced death benefit can easily exceed 3% per year. The trade is straightforward: each rider buys a specific guarantee, but the only way that math works in your favor is if you actually use the guarantee you are paying for. Stacking riders you will not exercise is the most common way buyers overpay for a product like this.

Legal Entity: Lincoln Life & Annuity Company of New York

Parent: Lincoln Financial

AM Best Rating: A