Level Advantage 2 B-Share (Merrill Lynch) review

It depends on who is asking. For a Merrill Lynch client who wants structured accumulation with buffer protection and has no need for a lifetime income rider, this is a solid product with a competitive feature set. For anyone outside the Merrill Lynch channel, it is simply not accessible. For anyone whose primary goal is guaranteed lifetime income, this is the wrong product type entirely. The six-year commitment is reasonable by RILA standards, and the 10% free-withdrawal provision from day one is a practical liquidity feature.

The rational case for Level Advantage 2 B-Share is that you want market-linked growth potential with a defined floor under losses, but you do not want the full exposure of a variable annuity. The buffer strategies mean the insurer absorbs the first portion of any annual index loss — you only bear losses beyond the buffer threshold. The annual lock strategies also let you fix your cap rate for the full six-year contract term, which removes the uncertainty of annual rate resets that affects many FIAs. Buyers who value rate certainty alongside partial downside protection will find that combination meaningful.

I think this product is best suited for someone in their mid-50s to early 70s who is accumulating retirement assets, has a six-year-or-longer time horizon, and is primarily concerned with managing downside risk rather than maximizing absolute return. It is specifically for Merrill Lynch clients — the distribution is channel-restricted and cannot be purchased elsewhere. It is less appealing for someone who wants lifetime income guarantees, expects to need more than 10% of their account value in any given year, or is near a stage of life where flexibility is more important than accumulation.

A RILA is not principal-protected in the same way a traditional FIA is. You are not buying a guarantee that you cannot lose money. You are buying a contract where the insurer agrees to absorb a defined portion of index losses — say, the first 10% or 20% of a negative year — while you retain exposure to losses beyond that threshold. In exchange for that partial protection, your upside is capped. This structure gives you more growth potential than a traditional FIA but more downside risk. The risk is bounded, not eliminated. That distinction matters enormously and should be clearly understood before purchasing.

Level Advantage 2 B-Share offers four crediting methods. The Annual Point-to-Point with Losses Covered Up To (Buffer) strategy credits you with index gains up to a cap, and the insurer covers a defined percentage of annual index losses — you only absorb losses beyond that buffer. The Annual Performance Trigger credits a fixed rate if the index finishes flat or positive, regardless of how much it gains. The Annual Dual Performance Trigger credits a fixed rate as long as the index does not fall below the buffer threshold — adding a dimension where modest losses still produce a positive credit. The Six-Year Term End Point with Buffer measures performance over the full six-year contract period rather than resetting annually.

The spec notes cap rates ranging from 6.00% to 90.00% depending on index, term, and method, with a 1.00% annual spread on most strategies and 0.10% on the No Downside Risk strategy. Current rates are effective as of March 5, 2026, and are subject to change — these figures are a snapshot, not a permanent feature. The annual lock strategies guarantee the cap rate for the full six-year term, which is a meaningful benefit if you are concerned about future rate resets.

The Secure Lock+ feature allows you to lock in accumulated gains mid-term rather than waiting until the end of the crediting period. That is not standard in most RILA contracts. If the market has rallied significantly, Secure Lock+ gives you the option to protect those gains rather than risking them against a future downturn. It is not a substitute for understanding the buffer structure, but it is a real enhancement to the flexibility of the contract.

Level Advantage 2 B-Share has a six-year surrender schedule starting at 7% and stepping down to 3% in year six. No market value adjustment applies. Free withdrawals of up to 10% of account value are available immediately from day one. Withdrawals from structured strategies are subject to a daily adjustment, which means the timing of an intra-term withdrawal affects the amount you receive — this is different from a traditional FIA where mid-year withdrawals are more straightforward.

Surrender charge waivers are available for nursing home confinement of 90 or more consecutive days, terminal illness, and disability. There is no free-transfer provision within the contract term; transfers are only allowed at the end of a crediting term. For qualified accounts, RMD treatment is not explicitly described in the available materials — buyers should confirm with Lincoln or their Merrill Lynch advisor how RMDs interact with the structured strategies.

This contract carries no explicit base contract fee, no M&E charge, and no administration charge — which is typical for RILAs, where the cost structure is embedded in the spread and cap design rather than explicit fees. The 1.00% annual spread on most indexed strategies effectively reduces the net cap available to you compared to the gross index performance. The optional Guarantee of Principal Death Benefit rider carries no fee for issue ages 0-75 but adds a 1.00% annual charge for issue ages 76-85.

The absence of explicit fees does not mean the product is cost-free. The spread is a real drag on credited interest. And the buffer itself is purchased by accepting a lower cap than you would receive on a comparable uncapped or higher-cap strategy — there is no free protection here. The tradeoffs are structural and real; they are just not labeled as a fee line item.

Legal Entity: The Lincoln National Life Insurance Company

Parent: Lincoln Financial Group

A.M Best Rating: A