ChoicePlus Select B-Share (Merrill Lynch) review

It is a functional annuity for the right buyer in the right context. This product gives Merrill Lynch clients access to a broad investment lineup inside a variable annuity wrapper, plus the ability to add death benefit enhancements or lifetime income riders if those protections are meaningful to their plan.

It is not a strong choice for someone who is cost-sensitive, who wants a simple low-fee investment account, or who does not particularly value the insurance guarantees. Variable annuity costs compound over time, and the B-share format means there are real penalties for early exit. Buyers who buy this product and later decide they want out before year seven will face surrender charges from 7% down to 3%.

For the buyer who understands those terms, values the guarantees, and is working through Merrill Lynch as a distribution channel, this is a legitimate product with a reasonable design.

The main reasons are investment breadth with tax deferral, optional guaranteed lifetime income, and the death benefit structure. A buyer who wants equity and bond market access inside an annuity that defers taxes and can be converted into a guaranteed income stream has a real use case here. The optional enhanced death benefit riders also make this worth considering for buyers with a legacy or estate planning component.

The Merrill Lynch channel relationship matters too. Some buyers prefer working with an advisor they already trust, and this product is designed specifically for that distribution context.

I think this product is best for a Merrill Lynch client who wants variable investment exposure inside a tax-deferred wrapper, values the optional income or death-benefit protections, and has a long enough time horizon that the 7-year surrender schedule is not a concern. It is less attractive for someone who is fee-sensitive, plans to take significant withdrawals before year eight, or does not need the insurance guarantees that justify a variable annuity's cost structure.

Buyers who already have substantial tax-deferred savings and are focused mainly on low-cost accumulation will typically find better options outside of a B-share variable annuity structure.

You are buying a tax-deferred investment account wrapped in an insurance contract. The insurance wrapper provides tax deferral on gains, a death benefit floor, and access to optional lifetime income guarantees through rider elections. The underlying investments are standard subaccounts — essentially mutual-fund-like portfolios inside the annuity shell.

What separates this from simply owning mutual funds in a brokerage account is the insurance layer: the guarantee options, the tax treatment of gains at death, and the ability to convert to a lifetime income stream. What makes it more expensive than a brokerage account is that same insurance layer, which carries an annual M&E charge plus administrative fee regardless of whether you elect any riders.

The investment core is a menu of 114 variable subaccounts. These span equity (domestic, international, sector), fixed income, and allocation strategies across multiple fund managers. Net subaccount expense ratios range from a reported 0.48% to 1.46% annually, on top of the base contract's 0.95% M&E and administration charge.

The investment allocation is buyer-directed. You can concentrate in a single subaccount or spread across many. The contract does not credit interest based on an index formula the way a fixed indexed annuity does — the subaccount values move directly with the underlying fund performance. That means genuine upside participation in rising markets, and real downside exposure in falling ones.

The optional income rider suite is the reason to consider this product over a lower-cost alternative. The most notable option is the roll-up-based rider (ProtectedPay Select Core VII, per the spec) that offers a 6% simple annual roll-up on the benefit base during the accumulation phase. That roll-up can grow the guaranteed income base meaningfully over a long deferral period, even if the account value fluctuates.

The i4LIFE Advantage rider adds a different structure — it is Lincoln's managed-withdrawal approach to income, designed to let the investment account continue participating in markets while generating regular distributions. For buyers who want income that has a chance to grow over time, that design is worth understanding carefully.

Rider fees range from 0.40% to 2.75% annually, and higher-cost riders typically carry more generous guarantees. The tradeoff is that a 2.75% rider fee on top of base contract expenses creates a significant total-cost burden.

This contract allows free withdrawals of up to 10% of current account value or 10% of premiums paid, whichever is greater. Amounts above that during the first seven years are subject to the B-share surrender schedule. A market value adjustment may also apply under certain conditions.

The free withdrawal provision provides some access, but buyers with near-term liquidity needs should understand that the B-share format is designed for long-term money. The $35 annual contract fee (waived at $100,000 account value or after year 15) is a minor additional cost for smaller accounts.

The fee structure here is real and adds up. The base contract charges 0.85% for M&E and 0.10% for administration, totaling 0.95% annually. On top of that, every subaccount carries its own expense ratio — from 0.48% for simpler or lower-cost fund options up to 1.46% for actively managed strategies. That puts all-in investment costs at a minimum of 1.43% annually before any rider elections, and potentially over 2.40% if you allocate to the more expensive subaccounts.

Add an income rider at the upper end of the range (2.75%) and total annual costs can reach 4% to 5% or more. That is a significant drag on a variable investment account.

The tradeoffs are structural. The insurance guarantees have real value for some buyers — particularly the death benefit floor and the optional lifetime income features — but those guarantees come at a cost that compounds over time. Buyers who elect riders and then do not use the income benefits have effectively paid for a guarantee that went unused.

Legal Entity: The Lincoln National Life Insurance Company

Parent: Lincoln Financial Group

A.M. Best Rating: A

Lincoln Financial Group is a major annuity carrier with a long history in the variable annuity market. The A (A.M. Best) rating reflects solid financial strength. Lincoln's ChoicePlus platform has been a significant part of their variable annuity distribution, and the product reflects that experience.