Copyright Essentially Sports
Two-time NASCAR Cup Series champion Kyle Busch and his wife, Samantha Busch, have taken legal action against Pacific Life Insurance Company and its appointed agent, alleging they were misled into purchasing a series of Indexed Universal Life (IUL) insurance policies that were promoted as safe, tax-free retirement and future planning vehicles. The lawsuit, seeking $8.5 million in damages, centers on the claim that the complexities, costs, and risks of the IUL policies were misrepresented, leading to devastating financial losses. The Busches have publicly stated that their primary motivation is to warn everyday Americans about what they describe as a “hidden insurance scam.” The alleged $8.5 million financial setback The complaint, filed in Lincoln County, North Carolina, alleges that the Busches were induced to pay more than $10.4 million in premiums for the IUL policies based on what they claim were misleading illustrations, undisclosed costs, and false promises of guaranteed multipliers and controllable charges. The lawsuit asserts that after investing this substantial sum, the couple suffered net out-of-pocket expenses exceeding $8.58 million after accounting for the policies’ rapidly eroding cash values. Busch said his suspicions arose when he received a sixth premium notice on what he believed was a 5-year payment plan. Busch explained in a formal statement, saying, “Here we are in New York City. Samantha and I are at one of the major news stations here in New York City. And as many of you may have seen, we have a press release out that we are in litigation with Pacific Life in regards to IUL policies and insurance policies that are also retirement policies for planning for our future. And unfortunately, ours did not go well.” Read Top Stories First From EssentiallySports Click here and check box next to EssentiallySports The product at issue: misrepresented IUL At the center of the dispute are IUL policies, a type of permanent life insurance that combines a death benefit with a cash value component. The growth of this cash value is tied to a stock market index and is often marketed as having protections against market downturns. According to the Busches’ complaint, these policies were marketed by Pacific Life and its agent as a “no-risk” retirement plan that would allow them to take out a reliable stream of tax-free self-funding income. In simple terms, Kyle Busch stated he was told that if he paid a million dollars for 5 years, he would be able to take out $800,000 a year once he turned 52. However, upon reviewing the policy, Busch claims he learned that his money was going to the insurance company’s account instead of being invested in the market, which meant his investment never grew as the market rose. Samantha further added to the sentiment, saying, “As you’ll hear when this broadcast comes out, it was a major scam. We tried to do what we thought was best for our family, for Brexton and Lennix. We were trying to be financially responsible for them and plan for our future. And little did we know that by investing money in this scam, it’s all gone. And so the reason we came out here today is, as you guys know, who followed us for a while, every time God puts a struggle in our path, we are going to try to use it for good.” The mission: sounding the alarm on the ‘major scam’ The Busches have emphasized that their public campaign is not only about recovering their alleged losses but also about preventing other families from suffering similar financial hardship. The lawsuit also names the Pacific Life agent involved in the sale, alleging that he steered the Busches into an unsustainable, high-risk product. According to Busch, the agent received a substantial, previously undisclosed commission on the sale. Samantha then detailed the motivation behind their platform, saying, “We’re out here speaking out about what happened because this just isn’t happening to athletes and celebrities. This is happening to teachers, police officers, veterans. This is happening to widows. These are people who are 70 years old. They have nothing else to fall back on. These are people who are, you know, they’ve worked hard. They’ve made a small business. They are ready to retire, and they buy into these scams, and they lose absolutely everything.” The couple wasn’t the only one affected, as Busch’s attorney found out about other individuals, too, who have lost their investments in similar IUL products. The complaint also alleges that the defendants breached fiduciary duties by acting as financial advisors while failing to disclose conflicts of interest and the true nature of the products. “Kyle and I, we’ll use this platform to try to do all the good that we can. And so we’re going to keep fighting Pacific Life, and we’re going to show the world that this was a huge and utter scam,” Samantha continued. Their commitment to keep fighting Pacific Life and providing updates on the litigation underscores a broader mission: to ensure that everyday Americans do not fall victim to the scam. Now, as the lawsuit continues, Busch has clearly stated, “So tune in for further updates as we come along further in the case.”
