ChoicePlus Design 1 review

Yes, for the right buyer. This is a good annuity for someone who wants market-based growth potential, values tax deferral, and likes having a deep menu of investment choices plus optional riders they can add if their goals shift. It is less appealing for someone whose main priority is principal protection, because a variable annuity puts the account value directly at market risk and the base contract still carries an annual cost even before fund expenses.

The main reason to buy ChoicePlus Design 1 is tax-deferred investment growth with a broad set of subaccounts to choose from. The secondary reason is optionality. A buyer can start out using it purely for accumulation and later layer on a guaranteed living benefit for lifetime income, a long-term care acceleration benefit, or an enhanced death benefit. In real life, this is the kind of annuity someone buys when they want market upside, have already used other tax-advantaged accounts, and want a flexible chassis they can adapt over time.

I think ChoicePlus Design 1 is best for an investor who genuinely wants market exposure, understands that the account value can go down, and values the flexibility of a large fund lineup and optional riders. It can also fit someone who wants the option to convert investment dollars into guaranteed lifetime income later through the ProtectedPay or i4LIFE riders. It is less attractive for someone who wants guaranteed principal, a simple low-cost contract, or who would not actually use the optional features they are paying to have available.

You are not buying principal protection or a guaranteed rate here. You are buying tax-deferred market participation through subaccounts, plus the option to add guarantees on top. Your money is invested in variable investment options whose value fluctuates with the markets, and the carrier charges a mortality and expense plus administrative fee for the insurance wrapper. That distinction matters because it sets expectations correctly. The growth potential is real, but so is the downside, and the value of this contract comes from the investment menu and the optional riders, not from a fixed crediting rate.

The core of ChoicePlus Design 1 is its variable investment platform. The contract offers roughly 125 subaccounts covering equity, fixed income, balanced, and specialty strategies, with net subaccount fees that the spec puts in the 0.48% to 1.46% range. You allocate premium across the subaccounts you choose, and your account value moves with their performance. There is no cap, participation rate, or spread to limit returns the way a fixed indexed annuity would, because this is true market exposure rather than index crediting.

The practical takeaway is flexibility. Lincoln supports dollar-cost averaging, automatic portfolio rebalancing, and systematic withdrawals, plus up to 12 free transfers per year among subaccounts. That gives the owner a lot of control, but it also means the responsibility for choosing and maintaining an appropriate mix sits with the buyer and their advisor.

The most meaningful secondary feature is the optional rider suite, because it is what separates this from a plain brokerage account with tax deferral. On the income side, ChoicePlus Design 1 can add a Lincoln ProtectedPay guaranteed lifetime withdrawal benefit (Select Core, Select Core VII, Select Max, or Select Plus), which the spec describes with a 6.00% simple annual roll-up on the benefit base, along with 4Later and i4LIFE income options. Importantly, this income rider is optional and is not built into the base contract, so a buyer only pays for it if they elect it.

On the protection side, there are death-benefit upgrades, including a Guarantee of Principal Death Benefit, an Enhanced Guaranteed Minimum Death Benefit, and an Estate Lock rider, plus a long-term care rider that can accelerate benefits for qualifying care needs. The flexibility is a genuine strength, but each rider carries its own charge, so the value depends entirely on whether the buyer actually needs and uses the features they add.

This annuity allows free withdrawals each contract year of the greater of 10% of current account value or 10% of premiums paid, even during the surrender period. Amounts above that during the first seven years are subject to the surrender schedule below, and a market value adjustment may also apply, which can increase or decrease the charge depending on interest rate movements and state rules.

There are some long-term ownership features worth noting. After 12 years, the contract adds a 0.40% annual long-term persistency credit to contract value, credited quarterly, and there is a $35 annual contract fee that is waived after 15 years or once contract value exceeds $100,000. Even with the relatively generous free-withdrawal provision, this is still a long-term, market-based contract and should not be treated like emergency cash.

The first cost is the base contract charge. The spec puts total base expense at about 1.10% a year, made up of a 1.00% daily mortality and expense charge plus a 0.10% administrative charge. On top of that you pay the net subaccount fees on whatever funds you choose, which the spec ranges from 0.48% to 1.46%.

The bigger cost decisions are the optional riders. The income riders run roughly 1.50% to 2.75% as an annual benefit charge deducted quarterly, the death-benefit riders range from 0.05% to 1.60%, and the long-term care rider adds another 0.50% to 0.76% for the acceleration benefit. Stacked together, a fully loaded contract can easily cost more than 3% a year before fund expenses. That is the central tradeoff: ChoicePlus Design 1 buys real market upside and broad optionality, but the layered fees and market risk make it materially more expensive and less predictable than a fixed or fixed indexed annuity built for protection.

Legal Entity: The Lincoln National Life Insurance Company

Parent: Lincoln Financial Group

A.M. Best Rating: A