Level Advantage 2 B-Share Principal Guarantee Death Benefit (Merrill Lynch) review

Yes, for the right buyer. This is a solid RILA for someone who wants index-linked growth potential over a 6-year window and values either the automatic or optional death benefit protection for their heirs. It is less appealing for someone who wants pure principal protection at all times, who needs guaranteed lifetime income, or who is uncomfortable with the possibility of crediting losses under certain market conditions.

The main reason to buy this annuity is the combination of RILA-style growth potential and a death benefit guarantee. For buyers aged 76 to 85, the Guarantee of Principal Death Benefit means that even if the account has lost value by the time of death, the beneficiaries receive the original premiums paid, adjusted for withdrawals. That addresses a genuine concern older buyers often have about market-linked products. For younger buyers, the product offers a competitive RILA with a wide range of index and strategy choices across a manageable 6-year period.

I think this annuity is best for someone in the 76–85 age range who wants growth potential from a diversified RILA menu and wants the confidence of knowing their estate will at minimum receive what they put in. It also works for accumulation-focused buyers under 76 who want a RILA with broad crediting flexibility and a 6-year horizon and are not in need of an income rider. It is less well-suited for someone who cannot accept any crediting losses, who wants a short surrender period, or whose primary goal is guaranteed lifetime income.

You are buying a registered index-linked annuity, which is different from a traditional fixed indexed annuity. A RILA does not fully protect your principal the way a standard FIA does. Instead, it limits your downside to a defined buffer or floor while allowing more upside potential than a typical capped FIA. If the chosen index drops more than the buffer, you absorb the excess loss. That is the structural trade — higher potential gains in exchange for accepting some downside risk. The Guarantee of Principal Death Benefit overlays a death-time protection on top of this, but it does not protect your account value while you are alive.

Lincoln Level Advantage 2 B-Share offers seven crediting strategy types across five indices: S&P 500, Russell 2000, Capital Strength Index, First Trust American Leadership Index, and MSCI EAFE. The strategies include annual point-to-point with a performance cap, annual point-to-point with a performance trigger, annual point-to-point with a dual performance trigger, 6-year point-to-point with a performance cap, 6-year term end point with a performance cap, 6-year participation rate, and the 6-year Dual15 Plus strategy.

The buffer and floor mechanics are the heart of the RILA design. A buffer absorbs the first portion of any index loss — so if the buffer is 10% and the index drops 15%, the account only loses 5%. A floor sets an absolute maximum loss per period — so if the floor is -10%, that is the worst you can do even if the index drops 40%. Rates effective March 5, 2026 show caps ranging from approximately 10% to 30% depending on index, term, and strategy. These rates are declared at Lincoln's discretion and are subject to change.

The Guarantee of Principal Death Benefit is the most distinctive feature of this particular version. For buyers aged 0 through 75, the full account value is the death benefit automatically and there is no separate charge. For buyers aged 76 through 85, the optional Guarantee of Principal Death Benefit ensures that beneficiaries receive the greater of the full account value or the original premiums paid adjusted for withdrawals — at a cost of 1.00% annually.

That 1% fee is meaningful over a 6-year period. But the reason someone aged 80 might pay it is straightforward: if they allocate to a RILA strategy and markets perform poorly in their final years, their heirs could otherwise receive an account worth less than the original investment. The Guarantee of Principal essentially converts the death benefit into a return-of-principal floor, separating the risk of holding a RILA from the legacy outcome. That is a real problem being solved.

This annuity allows free withdrawals of up to 10% of the current account value annually, provided at least $1,000 remains in the account after the withdrawal. Amounts above the free amount are subject to a 6-year surrender schedule of 7%, 7%, 6%, 5%, 4%, 3%, then 0%. There is no market value adjustment on this product.

Two surrender charge waivers apply: admission to an accredited nursing home for 90 or more consecutive days, and a terminal illness diagnosis after the contract date. Required minimum distributions are RMD-friendly. Even with those features, this is not a product designed for short-term or unpredictable cash needs.

For buyers aged 0 through 75, there is no rider fee — the full account value death benefit is included automatically. For buyers aged 76 through 85 who elect the Guarantee of Principal Death Benefit, a 1.00% annual rider fee applies. There is no base contract fee, no spread, and no income rider fee because no income rider is available.

The more important tradeoffs are structural. This is a RILA, not a fully principal-protected FIA. Buffers reduce loss exposure but do not eliminate it. Cap and participation rates are subject to change at renewal. The 6-year Dual15 Plus and participation rate strategies give buyers meaningful upside access, but the mechanics of each strategy should be understood before selecting. This product is also only available through Merrill Lynch, which limits who can access it.

Legal Entity: The Lincoln National Life Insurance Company

Parent: Lincoln Financial Group

AM Best Rating: A

Lincoln Financial Group is a well-established insurance carrier with broad annuity distribution. The A rating from AM Best reflects strong financial strength and claims-paying ability. Lincoln's Level Advantage series is one of their flagship RILA platforms, and the B-Share structure indicates a commission-based product with corresponding surrender charges rather than a fee-based advisory arrangement.