Ohhh. Yucky. I had to go look up the general idea of what an Indexed Universal Life Insurance policy is, and it's basically two things - whole life insurance (not good) with an investment option inside an expensive wrapper (really not good).
If you have no dependents, there's not a huge need for life insurance of any kind, but you could technically say that being the sole owner of a business and making the lion's share of income could put your husband at a great disadvantage if something happened to you, so it wouldn't be out of line to have some sort of term life insurance in place for 10 years or so until you had significant liquid investments that could handle any disasters. Not sure, but you may even be able to look at term life on yourself as a business expense (definitely would need to check with a business accountant on that tho)
I'm definitely not an expert, but yeah, on the face of it this policy is crappy (nearly 38% paid out in fees and expenses per month? That's insane), and you may want to do as much reading/research on it as needed to get out of it as soon as you can. The surrender charge alone is a big red flag that it was a bad move - charging that much to cancel the policy means that they know some folks will wise up within a few years and get out of it, so they'll hit you again on the way out for getting suckered into it in the first place. Talk about adding insult to injury!
My back of the envelope math indicates you will have paid in over $200,000 in expenses alone if you stayed the full 10 years to avoid the surrender charge... that's crazy.
The money you'd lose on the surrender is part of the sunk cost - it's gone, and staying in this policy isn't going to make it any less of a bad investment and just compound your losses. Get out as soon as you can, and just chalk it up to a very expensive life lesson.
If you do decide on life insurance, term life all the way. You pay a lower fee for high coverage for a specific period of time and then you're done.
And you can definitely do investments much better/cheaper using someplace like Vanguard. If you're a business owner, I believe you can also do a solo 401k and put your money in a tax sheltered vehicle that won't charge you hardly anything to invest. Using complicated wrapper products that combine investing and life insurance are just designed to profit the companies that make them; simple is always going to be better for the people actually using them.
And you can then devote some of that investment money that was eaten up in expenses to paying down that high interest loan...
I would definitely suggest you read Jim Collins' stock series to get up to speed on how investing works, and how easy it could be to just set up a basic portfolio:
http://jlcollinsnh.com/stock-series/and he's in the process of switching hosting sites, so that link may not work as well, but it seems to be working right now... give it a chance if you get an error as his series is the absolute best in laying out everything you really need to know on investing.
Good luck, and don't be too hard on yourself - it can be really hard to wade through all of the crap and sales polish they pitch out there!