Covered Choice 5 II review

Yes, for the right buyer. This is a reasonable annuity for someone who wants a short-commitment FIA, principal protection, and a simple strategy menu. It is less appealing for someone who wants a deeper index lineup, specialty crediting strategies, or a built-in income rider. The low minimum premium and wide issue-age range (including issue at age 0) make it accessible for a wider range of planning situations than many competitors allow.

The main reason to buy Covered Choice 5 II is accumulation with principal protection in a five-year format. The secondary reason is accessibility — the $10,000 minimum and broad issue-age range mean this product works in more situations than contracts with higher entry requirements. In practice, this is the kind of annuity someone chooses when they want a short-term FIA without a lot of complexity, and where simplicity itself is a feature rather than a limitation.

I think Covered Choice 5 II is best for someone who wants a clean, uncomplicated 5-year accumulation FIA, does not need an income rider, and values having a low entry point. It is less appealing for buyers who want a broader crediting menu, specialty index strategies, or multiple strategy tiers to optimize across. Buyers who are comparison-shopping deeper FIA platforms may find the crediting menu limiting relative to peers, but for someone who wants a simple, straightforward contract from a well-rated carrier, this product delivers.

You are not buying direct stock market participation. You are buying a principal-protected annuity contract that credits interest based on S&P 500 performance in one of three ways, or at a fixed declared rate. The guarantee that matters most here is the floor — your principal is protected from index losses. The upside is limited by caps, trigger rates, or participation structures depending on the strategy you choose. That is the fundamental trade: protection on the downside, limited participation on the upside.

Covered Choice 5 II offers four crediting options: a fixed account and three S&P 500 annual strategies. The S&P 500 Cap strategy is a traditional point-to-point capped approach — you earn up to the cap rate when the index is positive, and earn zero when it is negative. The Performance Triggered strategy credits a specified rate when the index ends flat or positive, regardless of how much it gains. The Dual Trigger strategy is more nuanced: it also credits interest when the index is modestly negative, as long as the decline is less than the trigger rate. The current cap is reported at 8.5% (medium confidence — rates vary by strategy and are declared annually).

The practical effect is that buyers get three different risk-return profiles inside one contract. The Dual Trigger is the most distinctive option because it can credit interest even in a down market, which changes the accumulation math in moderate correction scenarios.

The most meaningful secondary feature here is the combination of the Nursing Home and Terminal Illness Waiver and the death benefit structure. The waiver allows early access in qualifying hardship situations — an important provision in a 5-year contract, especially for buyers near or in retirement. The death benefit is the greater of the full account value, minimum guaranteed surrender value, or guaranteed minimum non-surrender value, which provides meaningful legacy protection without an additional fee. These features do not change the accumulation story, but they improve the product's overall value for buyers who care about downside scenarios.

Covered Choice 5 II allows free withdrawals of up to 10% of account value annually during the surrender charge period, which is a standard provision for FIAs. The surrender schedule is weighted toward the earlier years — charges of 8%, 8%, 7%, 6%, and 5% mean the first two years carry the highest early-exit cost. A market value adjustment also applies to amounts withdrawn in excess of the free amount, which can increase the effective cost of an early large withdrawal depending on interest rate conditions at the time.

The MVA does not apply to the 10% annual free withdrawal, withdrawals taken after the surrender charge period ends, or the death benefit. The nursing home and terminal illness waiver provides additional early-access relief in qualifying situations. Still, this is not a product suited for money that may need to be fully accessible inside five years.

There is no contract fee and no rider fee — there is no income rider to buy. The base contract structure is essentially fee-free at the contract level, which is a genuine advantage for accumulation-focused buyers who do not want to pay for features they will not use.

The tradeoffs are structural rather than explicit. Upside is limited by caps and trigger rates. The S&P 500 Cap strategy will underperform a direct index in strong markets. The crediting menu is narrow — three strategies tied to a single index is a thin lineup compared with peers that offer multiple indices, specialty strategy tiers, and 2-year measurement options. Buyers who want more flexibility in how they pursue index-linked interest will find this contract more limiting than the better-rated alternatives in the same surrender-period band.

Covered Choice 5 II is issued by The Lincoln National Life Insurance Company, part of Lincoln Financial Group. Lincoln holds an AM Best rating of A, reflecting strong financial stability. Lincoln is a large, well-established insurance carrier with broad national distribution and a multi-decade track record in annuity products.