FlexAdvantage Income 7 (Merrill Lynch) review

Yes, for the right buyer. This is a good annuity for someone who wants a structured lifetime income strategy, is buying through Merrill Lynch, and plans to defer income for several years while the income base grows at a 9% simple annual rate. It is less appealing for someone mainly chasing accumulation, someone who wants a low-fee structure, or someone who cannot meet the $75,000 minimum premium.

The main reason to buy FlexAdvantage Income 7 (Merrill Lynch) is the built-in ProtectedPay Select rider and its 9% simple annual roll-up. For someone deferring income for five to ten years, that roll-up meaningfully increases the income base before activation, which translates into a higher protected lifetime withdrawal amount. The secondary reason is the combination of principal protection and the optional Estate Lock death benefit, which lets buyers pursue lifetime income without completely giving up a legacy value for heirs.

I think this annuity is best for someone in their late 50s or early 60s who is using Merrill Lynch for their retirement planning, has at least $75,000 in long-term retirement dollars available, and wants to lock in a predictable income growth path before retirement begins. It is less attractive for someone who wants flexible access to their money, someone who plans to turn income on soon after purchase with minimal deferral, or someone who primarily wants an accumulation vehicle.

You are not primarily buying index-linked growth. You are buying a lifetime income framework. The core of the contract is the ProtectedPay Select rider, and the index crediting strategies exist to support and potentially grow contract value alongside the income base. The account value can benefit from index-linked interest credits, but the income base follows the 9% simple annual roll-up track regardless of how the index performs. For income-focused buyers, that separation is a feature, not a limitation.

Lincoln ProtectedPay Select is built into every FlexAdvantage Income 7 (Merrill Lynch) contract. The rider tracks an income base that grows at a **9% simple annual roll-up** during the deferral period. The roll-up is applied each contract year before income activation, and it continues as long as no Protected Annual Income withdrawals have been taken.

When the buyer is ready to activate, Lincoln calculates the Protected Annual Income amount based on the income base and the buyer's age at activation. The longer the deferral, the larger the income base, and the more income can be generated at activation.

Once income is activated, withdrawals are taken as Protected Annual Income. Those withdrawals are not subject to surrender charges but count toward the annual free withdrawal limit. If account value is later depleted, Lincoln continues income payments for life under the contract guarantees.

The income rider fee of **1.10% annually** is deducted from contract value, and Lincoln reserves the right to adjust the fee up to a maximum of **2.25%**. That fee range is an important detail for buyers to understand before committing.

The most meaningful secondary feature is the optional **Estate Lock** death benefit enhancement. The standard death benefit on this contract is the greater of full account value or the guaranteed minimum surrender value — which is 87.5% of premiums growing at a stated rate. The Estate Lock rider adds a third option: an enhanced death benefit that is generally greater than or equal to premiums paid, adjusted for withdrawals. That can matter for buyers who want to preserve a legacy value without sacrificing lifetime income protection.

The Estate Lock rider costs an additional **0.45% annually**, so buyers need to weigh whether the enhanced death benefit is worth layering on top of the income rider fee. For buyers with estate planning goals, it may be. For buyers focused purely on income, it may not add enough value to justify the cost.

This contract is built for long-term retirement dollars, not short-term liquidity. The free withdrawal provision allows up to **10% of account value annually**, and Protected Annual Income and RMD withdrawals are not subject to surrender charges, though they count toward that limit. A **market value adjustment** may apply to withdrawals above the free amount during the surrender period.

Nursing home and terminal illness waivers are available, providing some relief in hardship situations. Even with those provisions, this is not a contract for money that may be needed in the near term.

The income rider fee is the primary cost: **1.10% annually**, charged on the income base and deducted from contract value. Lincoln can raise that fee up to a **2.25% maximum**, which is a meaningful range to keep in mind when projecting long-term costs.

The optional Estate Lock death benefit rider adds another **0.45% annually** if elected, bringing total explicit fees to **1.55% per year** if both are in force.

Beyond explicit fees, the crediting terms reflect the income-first design. The S&P 500 cap runs around **5.10%** for standard premiums and **4.35%** for some strategies, with a fixed account at **3.10%** (as of the March 2026 rate effective date). These are not accumulation-competitive terms, which is expected for an income-focused contract but worth acknowledging for buyers who may be comparing this product to accumulation FIAs.

FlexAdvantage Income 7 (Merrill Lynch) is issued by The Lincoln National Life Insurance Company, part of Lincoln Financial Group. Lincoln carries an **AM Best rating of A**, reflecting strong financial strength for a major carrier. Lincoln Financial is a well-established name in the annuity market, and this product reflects their mainstream income-focused FIA design for the bank and wirehouse channel.