F&G Pathsetter IUL Review (2026)
Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294Last reviewed · Published October 3, 2026
Editorial review by a licensed agent who may earn a commission. No insurer pays for placement or grades. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy.
Cap or participation: which wins when
F&G's own comparison sheet lists Pathsetter with a 12% cap, or a 9.5% cap at 140% participation, and a 0.25% minimum annual index credit, which is the floor, not a minimum cap (F&G ADV5572, Rev. 04-2026). The guaranteed minimum cap is not publicly disclosed; ask for it. The arithmetic is simple, and it is worth doing before choosing an account:
Hypothetical index credits under each option (before charges)
| Index return in a year | 12% cap at 100% | 9.5% cap at 140% |
|---|---|---|
| 3% | 3.0% | 4.2% |
| 6% | 6.0% | 8.4% |
| 6.8% | 6.8% | 9.5% (cap reached) |
| 9% | 9.0% | 9.5% |
| 12% | 12.0% | 9.5% |
| 20% | 12.0% | 9.5% |
Hypothetical. Not an illustration of any specific policy. Not a quote. Credits shown before policy charges; in down years both options credit the 0.25% minimum annual index credit.
The 140% option wins in modest years (up to about 8.5% index return) and loses in strong ones. Over long periods most index years are either negative or modestly positive, which is why many designs favor participation. But this is a judgment about the future, not a guarantee, and the terms can change.
AI voices. Education, not tax or legal advice. Hans is paid a commission if you buy a policy through him. Comment FUNDED on the video for the checklist.
Goldstein Scorecard: Pathsetter IUL
Goldstein Scorecard · Goldstein Index v1 · graded Oct 3, 2026 · how we grade →
F&G · vs. other indexed universal life policies · Draft grades on public data. Grades are shown on the page only and are Hans's editorial view.
| Dimension (weight) | Grade | One-line take |
|---|---|---|
| Cap / participation strength (15%) | A- | 12% cap, or 9.5% at 140% participation (Rev. 04-2026). [1] as of Apr 2026 re-grading |
| Floor and guaranteed minimums (5%) | B | 0.25% minimum annual index credit (floor); guaranteed minimum cap not publicly disclosed. [1] as of Apr 2026 re-grading |
| Loan options and current loan rate (15%) | B | Variable loan capped at 5%. [1] as of Apr 2026 re-grading |
| COI and charge drag (15%) | Pending | Charge schedules are in the policy form and illustration, not public; graded from the standardized case |
| Living-benefit riders (10%) | Pending | Rider design to confirm from the current CA rider forms |
| Overloan protection (5%) | Pending | No overloan protection rider found in public materials; confirm |
| Illustration conservatism (AG 49-A/B) (10%) | Pending | Graded from the illustrated rate in the standardized case vs peers |
| Carrier strength (10%) | B+ | AM Best A, affirmed 3/31/2026. [2] as of Mar 31, 2026 re-grading |
| Cash value at years 10/20 vs peers (standard case) (15%) | Pending | Needs Hans's standardized illustration (WinFlex/iPipeline), on file before grading |
| Guaranteed minimum cap disclosed (disclosure, not weighted) | No | Not publicly disclosed. Ask for it: it is the lowest the cap can ever go. |
| OVERALL | Incomplete | No overall grade yet: only 45% of the Index weight can be graded from public data (those dimensions average B+). The overall grade waits for Hans's standardized case (M45 preferred nonsmoker, $12,000/yr to 65, max-funded Option B to A, plus a minimum-funded case at the same death benefit). |
On public data, Pathsetter IUL grades strongest on cap / participation strength. 5 of 9 dimensions wait for a standardized illustration, so treat this as a starting point, not a verdict. Neutral summary of the scorecard, not a personal recommendation.
Best for: Accumulation buyers comparing published caps.
Look elsewhere if: You want a fixed or wash loan option.
- Ask: what is the guaranteed minimum cap and the guaranteed minimum participation rate in the contract for each index account? Not today's cap, the floor the cap can never go below.
- Why it matters: today's cap is not guaranteed. The insurer can lower caps on your policy over time, all the way down to that contractual minimum. Guaranteed minimum caps we have seen published run from 0.25% to 4% (insurer documents, 2024 to 2026), and several insurers don't publish theirs at all. That is a very different worst case.
- Many agents cannot answer this question on the spot. If yours can't, ask them to find it in the policy form or the illustration's guaranteed assumptions before you sign.
Where the insurer publishes it, the Goldstein Scorecard shows the guaranteed minimum cap; otherwise it says "not publicly disclosed". Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change.
An honest presentation of anything non-guaranteed uses words like "up to", "could" or "illustrated at". If you hear "will" about cash value, index credits, loan income or a living-benefit payout ("this policy will pay you 80%", "you will have $1 million at 65"), treat it as a red flag. Only the guaranteed column and the contract's stated guarantees are promises; ask the person to show you where the word "guaranteed" appears.
Get your F&G Pathsetter graded.
Send your email and I'll send the in-force illustration request letter. Return the illustration and I'll grade your policy within one business day.
We’ll email it to you. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
The 5% loan ceiling
Pathsetter's variable loan is capped at 5%. With the Moody's corporate average above 6% in late 2026, a cap on the loan rate is worth more than usual: it limits the cost of borrowing even if bond yields keep rising. It does not change the basic truth that a 0% index year makes the spread negative. Variable and indexed policy loans track corporate bond yields, which ran high in 2026 (the NAIC's Moody's corporate average, the benchmark for policy loan rates, was 6.25% in September 2026, NAIC), and regulators cap the spread an illustration may assume between the loan rate and the index credit at 0.5% (AG 49-A). Borrowing is a way to reach cash value, not an arbitrage.
Fact sheet: Pathsetter IUL
| Item | Detail | As of | Source |
|---|---|---|---|
| AM Best rating | A (outlook stable, as of 3/2026 (per F&G)) | Mar 2026 | source |
| Caps and floor | 12% cap; 9.5% cap at 140% participation; guaranteed minimum cap not publicly disclosed; 0.25% minimum annual index credit (floor) (Rev. 04-2026) | Apr 2026 | F&G: Everlast and Pathsetter comparison (ADV5572, Rev. 04-2026) |
| Loans | Variable loan, 5% maximum | Apr 2026 | F&G: Everlast and Pathsetter comparison (ADV5572, Rev. 04-2026) |
| Living benefits | Living benefits included | Apr 2026 | F&G: Everlast and Pathsetter comparison (ADV5572, Rev. 04-2026) |
| Face amount | $50,000 minimum death benefit; issue ages 0 to 80 | Mar 2026 | F&G Pathsetter IUL minimum face (death benefit) is $50,000; issue ages 0-80 (as of 2026) |
Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Confirm current figures in the carrier's latest disclosure and the California policy form before you buy.
Everlast: the protection sibling
The same F&G sheet shows Everlast, its death-benefit-focused IUL, with a lower 6.5% cap on the account shown, the same 0.25% minimum annual index credit (floor), no publicly disclosed guaranteed minimum cap, and a variable loan capped at 5.5%. Everlast is the policy to look at when the goal is the most death benefit per premium dollar rather than cash value; it is covered in the F&G review. LIMRA ranked F&G No. 7 in 2025 IUL premium ($238 million).
Where the premium goes, and the cost of insurance ladder
In this model a male 45 paying $10,000 a year loses about 15% of the first 10 years of premium to charges when the policy is max-funded, and about 22% when the same premium buys three times the death benefit. The surrender charge is extra: in year 1 the cash surrender value is about $4,245 of $10,000 (max-funded) and $0 (target-funded), which is why early cash value can feel like half the premium disappeared. A common rule of thumb is that roughly half of early premium goes to charges; in this model that is close for year-one surrender value, and too high for the ongoing charges in a well-funded design.
Hypothetical. Not an illustration of any specific policy. Not a quote. Model on current (non-guaranteed) charges: premium load 10% (years 1-10) then 5%, $10 a month fee, per-$1,000 charge for 10 years, current COI at 80% of 2017 CSO select rates, 6% illustrated crediting. Guaranteed maximum charges are higher. Ask your insurer for the policy's actual charge schedule.
Read it like a ladder. The insurance part of the policy gets more expensive every year: the guaranteed maximum rate is about $8 per $1,000 at 65, $24 at 75 and $82 at 85 (2017 CSO). Each step is small until the late 70s, then the ladder curves up sharply. In a well-funded policy the cash value grows faster than the charges, so the policy carries itself with no extra premium (green). In an underfunded policy the charges eat the cash value from the inside, and the owner must pay more or the policy lapses (red, at 79 here). Real results usually land between those lines, which is why an in-force illustration every few years matters.
Hypothetical. Not an illustration of any specific policy. Not a quote. Male 45, preferred nonsmoker. Charges per the stated model; COI is charged on the net amount at risk (death benefit minus cash value), so the dollar cost depends on both the rate and how much coverage the cash value has not yet replaced. Source for rates: Society of Actuaries, 2017 CSO table 3291.
Who it fits
- An accumulator who wants a transparent menu and a capped loan rate for later access.
- Not a fit: someone who wants a published guaranteed minimum cap, or who wants a charged full-value living benefit.
Own a F&G Pathsetter, or were you quoted one?
Send it over. Within one business day you get a written read on the Goldstein Index: funding level, lapse risk, loan cost and two alternatives.
Already own one? Ask the insurer for an in-force illustration (current and guaranteed). The request letter is on the policy review page.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer
Frequently asked questions
Sources
- F&G: Everlast and Pathsetter comparison (ADV5572, Rev. 04-2026)
- LIMRA: 2025 full-year top 20 IUL company rankings
- NAIC: Moody's corporate bond yield averages (policy loan benchmark)
- NAIC Actuarial Guideline 49-A (IUL illustrations)
Hans Goldstein, CA Insurance License #4273294 · NPN 20602398 · Goldstein & Co. LLC dba Goldstein Insurance Services, CA License #6016830
Contact: hans@hansgoldstein.com · 213-414-2808
General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Guarantees apply only to the contractual terms of the policy. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy. Product and company names are trademarks of their owners. Goldstein Insurance Services is an independent agency, not affiliated with or endorsed by any insurer named here. Life insurance requires underwriting; not everyone qualifies. This page describes products in general terms; read the policy and the insurer's disclosures before you buy.