They are not alone. Unfortunately the United States ranks 14th in the world in financial literacy. I think an IUL has its place but this isn’t one of them. Your sister is doing more harm than good in this situation. Shame on her boss as well. I honestly think given your situation a fixed income annuity with an income rider is the best way to go. They can get an 8-10% guaranteed return per year for 10 years.