Select 5-Year (Edward Jones) review

Yes, for the right buyer. This is a good annuity for someone who wants a guaranteed fixed rate for 5 years, values simplicity, and is already working with an Edward Jones advisor. It is less appealing for someone who wants index-linked growth potential, a very competitive MYGA rate in the open market, or a built-in income rider. The product does what it is built to do without extra cost or complexity.

The main reason to buy Lincoln Select 5-Year is rate certainty over a predictable 5-year window. Unlike a traditional fixed annuity where the credited rate can reset annually, this MYGA guarantees the same rate from day one through maturity. For someone moving money out of a maturing CD, a money market, or a short-term bond position and wanting to stay conservative, that predictability is the product's central value. The Lincoln name adds a layer of institutional familiarity for Edward Jones clients, and the low $10,000 minimum makes the product accessible without requiring a large initial commitment.

I think Lincoln Select 5-Year is best for an Edward Jones client who is in or near retirement, wants a conservative place to park a fixed amount for 5 years, and is comfortable accepting a guaranteed rate in exchange for liquidity restrictions above the 10% free withdrawal. It is less attractive for someone who wants to shop for the highest available MYGA rate across multiple carriers, needs frequent access to principal, or wants any index-linked or income rider component.

You are buying a guaranteed interest rate for a fixed 5-year term from a carrier with an A rating from A.M. Best. Nothing about this product is variable, index-linked, or tied to market performance. The credited rate is set at issue and holds for the entire contract period. That simplicity is both the product's biggest strength and its primary limitation — you know exactly what you are getting, but you are also accepting whatever rate Lincoln offers through the Edward Jones channel at the time of purchase.

Lincoln Select 5-Year credits interest through a single fixed account at a rate guaranteed for the full 5-year surrender period. According to available materials, the current rate is approximately 3.50% for the standard band, with a higher rate of approximately 4.90% available at higher premium thresholds — note that these rates are listed as of October 2025 and should be confirmed with the current rate sheet before purchase, as MYGA rates adjust frequently. Interest compounds inside the contract on a tax-deferred basis. At the end of 5 years, the contract exits its surrender-charge period and the owner can access the full accumulation value, renew at a new rate, or move the money elsewhere.

The rate-band structure is common in MYGAs, and the gap between the standard band and the higher-premium band is meaningful enough to influence decisions. Buyers near a threshold should evaluate whether additional premium qualifies for a materially better rate.

The most meaningful secondary feature is the Nursing Home and Terminal Illness Waiver. If the owner is confined to a nursing home or diagnosed with a terminal illness after the first contract year, surrender charges are waived, allowing access to the full account value without penalty. This is included at no cost and provides a practical safety valve for what is otherwise a 5-year lock-in. For conservative buyers who may worry about needing liquidity in a health event, this provision meaningfully reduces one of the key annuity concerns.

The full-account-value death benefit is also worth noting. Beneficiaries receive the full accumulation value rather than a reduced minimum, keeping the death benefit clean and predictable.

Lincoln Select 5-Year is a 5-year commitment. The 10% annual free withdrawal gives reasonable ongoing access, but amounts above that are subject to surrender charges and a market value adjustment. The MVA is important to understand — in a rising-rate environment, the effective cost of an early exit can exceed the stated surrender charge alone.

The free withdrawal requires leaving a $5,000 minimum in the contract, which is a standard provision. Required minimum distributions are not subject to surrender charges or MVA, which makes the product practical for qualified retirement accounts. The nursing home and terminal illness waivers provide additional liquidity relief after the first contract year.

There is no base contract fee and no annual charge. The product is a no-fee MYGA, which is the standard structure for this type of contract. The cost of ownership is embedded in the spread between the credited rate and Lincoln's investment portfolio yield — that is how the insurance company earns its margin and funds the guarantees.

The real tradeoffs are structural. The credited rate is channel-specific and may not match the best available rate in the open MYGA market. The MVA adds exit-cost risk on large withdrawals. The surrender schedule starts at 7% in years one and two, which is front-loaded relative to some competitors. An optional income rider is noted in the spec as available, but specific terms, fees, and mechanics were not fully available in source materials — buyers interested in income features should request rider details directly before purchase.

Legal Entity: The Lincoln National Life Insurance Company

Parent: Lincoln Financial Group

A.M. Best Rating: A

Lincoln Financial Group is a major national insurance and retirement carrier with broad product distribution. The A rating from A.M. Best reflects solid financial strength and claims-paying capacity. For a product where the buyer is locking in principal for 5 years, carrier quality is a real part of the equation, and Lincoln holds up well on that dimension. The Edward Jones channel adds a layer of distribution oversight — buyers work with a known advisory relationship rather than purchasing through an unfamiliar online or call-center process.