Kyle Busch and Wife File Lawsuit Over Alleged Life Insurance Scam

Two-time NASCAR Cup Series champion Kyle Busch and his spouse, Samantha, are sounding the alarm about a purported life insurance scheme that they claim resulted in losses exceeding $8.5 million for their family.

On Tuesday, the Busches made public their legal action against Pacific Life, accusing the company of “designing and promoting a series of intricate indexed universal life (IUL) policies misrepresented as ‘tax-free retirement plans’ ” that they believed to be secure self-funding investments.

According to the legal filing, misleading illustrations, undisclosed expenses, and false guarantees led the Busches to pay over $10.4 million in premiums, resulting in net losses of more than $8.58 million, as stated by their attorney, RP Legal.

Kyle Busch expressed his feelings of being caught in a “financial trap,” stating, “I never thought something like this could happen to us. These policies were promoted as a safe retirement plan, but the reality was quite different.”

Samantha Busch shared similar concerns, indicating that their experience could serve as a warning to others. “If sharing our experience helps even one person safeguard their financial future, then speaking out is worthwhile,” she said.

IULs allow policyholders to build cash value linked to stock market performance while offering a death benefit. However, the Busches assert that these policies are more complex and risky than initially suggested.

Attorney Robert G. Rikard emphasized that this issue isn’t limited to high-profile individuals, noting, “Everyday Americans are being sold complex life insurance contracts under the guise of simple retirement options.” Pacific Life has refrained from commenting on the lawsuit specifics but maintains its commitment to client trust and integrity.