American Legacy Fusion (Edward Jones) review

Yes, for a specific buyer. American Legacy Fusion works well for someone who wants market-linked growth through a variable annuity, values access to American Funds portfolios, and wants a low-friction surrender structure that becomes essentially unrestricted after year 2. The 10% free withdrawal right starts immediately — that is more accessible than most variable annuities at this duration. The product is less compelling for someone who wants a wide subaccount universe, needs nationwide availability, or is primarily shopping for maximum income rider value at minimum cost.

The main reason to buy American Legacy Fusion is the combination of American Funds subaccount access and a very soft surrender charge. Most 7-year variable annuities carry meaningful early-exit penalties across the full surrender period. This contract penalizes you only in years 1 and 2, and only 1% each time. After year 2, withdrawals beyond the free amount carry no surrender charge. That is a real structural advantage for a buyer who wants some optionality down the road. Secondary reasons include the available income and death benefit riders, which allow the contract to serve legacy or guaranteed income purposes if needed.

I think American Legacy Fusion is best for an Edward Jones client who wants variable annuity access to American Funds portfolios, expects to hold the contract for at least a couple of years, and may want optional income or enhanced death benefit protection in place but is not certain they will activate it. The low surrender penalty makes it more forgiving than many peers if plans change after the first couple of years. It is less well suited for someone who wants the broadest possible subaccount menu, needs the contract in states outside MN, OR, PA, or WA, or wants to optimize purely for income rider cost efficiency.

You are buying market participation through a variable annuity wrapper, not a principal protection product. Unlike a fixed indexed annuity, the contract value here can decline with the market — there is no floor on investment performance in the base contract. What the product provides is tax-deferred growth through American Funds and Lincoln subaccounts, a light surrender structure, and the option to attach income or death benefit guarantees for an additional fee. The decision to buy here is really a decision to access the American Funds lineup inside an annuity wrapper with optional insurance features attached.

American Legacy Fusion offers 24 variable subaccounts. The lineup is built around American Funds insurance-series portfolios and Lincoln Investment Advisors managed options, with net expense ratios ranging from approximately 0.72% to 1.15% depending on the subaccount chosen. That range is reasonable for actively managed variable annuity subaccounts compared with broader-menu products.

The base contract charges 0.85% as the M&E and administrative fee, plus an additional 0.10% administration charge and a 0.50% other charge, for a total base expense of 1.40% annually. On top of that, subaccount expenses run 0.72% to 1.15%, bringing the all-in cost to roughly 2.12% to 2.55% before any optional rider fees. A $50 annual contract fee applies but is waived after year 15 or when contract value exceeds $50,000.

The surrender schedule is 1% in contract year 1 and 1% in contract year 2 only. No surrender charge applies from year 3 forward. Free withdrawals of up to 10% annually (the greater of 10% of current contract value or 10% of total purchase payments) are available at any time.

The optional income rider — available as Lincoln's i4LIFE Advantage or ProtectedPay Select Core VI (Fusion) — is the most meaningful add-on. The income rider fee runs 0.40% to 1.60% for single or joint coverage (confidence: medium per spec). The spec notes a 7% roll-up rate on the benefit base, though the exact mechanics of how that roll-up applies should be confirmed in current rider materials before purchase. If the roll-up rate is accurate, that is a meaningful income accumulation feature for buyers still years away from drawing income.

Death benefit options extend beyond the standard full account value return. A Guarantee of Principal Death Benefit returns the greater of investor account value or total investment. An Enhanced Guaranteed Minimum Death Benefit steps up to the highest contract anniversary value, total investment, or current account value, plus a 0.25% variable annuity charge. These options give American Legacy Fusion more legacy utility than a plain variable annuity, and they matter most for buyers who want to protect heirs if markets perform poorly near the end of the contract period.

Nursing home, terminal illness, and disability waivers are also available, adding a meaningful safety valve if the owner's situation changes unexpectedly.

This contract is one of the more liquidity-friendly variable annuities at the 7-year duration tier. Free withdrawal access is available immediately at contract inception — not after year 1. The free amount is the greater of 10% of current contract value or 10% of total purchase payments, which means the standard can flex upward if early contributions were larger.

The surrender schedule is minimal: 1% in year 1 and 1% in year 2. From year 3 forward, there is no surrender charge on amounts above the free withdrawal. For buyers who want genuine flexibility after a short initial holding period, that structure is substantially more forgiving than the multi-year graded schedules common in this product category. No MVA applies.

After year 7, the spec notes that full access to purchase payments invested for seven years and all earnings becomes available without restriction.

The base contract expense is 1.40% annually (0.85% M&E plus 0.10% administration plus 0.50% other charge). Subaccount expenses add another 0.72% to 1.15% depending on fund selection. The $50 annual contract fee applies until the value threshold or year 15 is reached. Add an income rider and the total cost can reach 2.55% to 3.00% or more annually. That is within range for a variable annuity with rider benefits, but it is a real number to weigh against expected investment returns.

The main structural tradeoff is the deliberately narrow subaccount menu. Twenty-four options is a focused lineup, not an open-architecture platform. Buyers who want access to a wide range of ETF-linked, sector-specific, or alternative investment options will find this contract limiting. The American Funds focus is a feature for some buyers and a constraint for others.

State availability is also a meaningful limitation. The product is currently approved in MN, OR, PA, and WA only, and is not approved in NY. Buyers outside those states cannot access this contract at all.

American Legacy Fusion is issued by The Lincoln National Life Insurance Company, a subsidiary of Lincoln Financial Group. Lincoln holds an A (Excellent) rating from A.M. Best, reflecting solid long-term financial strength. Lincoln is one of the larger established variable annuity carriers in the United States, and the American Legacy product family has been a consistent part of its broker-dealer and wirehouse distribution strategy. This contract is issued specifically for the Edward Jones channel.