NASCAR’s Kyle Busch warns against life insurance plan after $8.5 million loss

Two-time NASCAR Cup Series champion Kyle Busch and his wife are warning the public about an alleged life insurance plan that they claim caused their family to lose more than $8.5 million.

Bush and his wife, Samantha, issued statements on Tuesday announcing that they had taken legal action against Pacific Life for allegedly “designing and promoting a series of complex indexed universal life (IUL) policies as ‘tax-advantaged retirement plans’ that were misrepresented as safe, self-funding investment vehicles.”

“According to the filing, defendants used misleading illustrations, undisclosed costs, and false promises of guaranteed multipliers and controllable fees to induce the Busches to pay more than $10.4 million in premiums, resulting in net out-of-pocket losses in excess of $8.58 million,” said a press release from RP Legal, which represents the Busches.

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Bush said in a statement provided by the company that he had been drawn into a “financial trap.”

“I never thought something like this could happen to us,” he said. “These policies were sold to us as part of a retirement plan – a safe and secure plan that would become tax deductible and protect our family long after the race. We trusted the people who sold them, and the name Pacific Life. But the reality is very different. What was promoted as retirement income turned out to be a financial trap.”

Samantha Bush echoed that sentiment, adding that their situation “makes me worry about families, retirees, and anyone trying to responsibly plan for their future who might hear those same promises.”

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She added: “If this can happen to us, it can happen to anyone, and I want people to be aware and protect their financial future.” “If sharing our experience helps one person protect their financial future, speaking out is worth it.”

IULs are a type of life insurance that allows policyholders to build cash value based on the performance of a stock market index while still providing a death benefit, but their returns are limited by caps, reduced by fees, and rely on complex formulas that can make them riskier than they appear.

The Bushes claim that the policies were more dangerous and complex than they thought.

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“This is not just a problem for celebrities or professional athletes. It is a problem for everyday Americans,” attorney Robert J. Rickard said in a statement. “Across the country, complex life insurance contracts are being sold to educators, small business owners and retirees as if they were simple, risk-free retirement plans. The risk lies not in the product itself, but in how it is marketed and presented as guaranteed paths to retirement security. Kyle and Samantha’s experience is a clear example of how easy it is for this to happen. Our mission is to hold the industry accountable and help families regain what they have lost.”

In a statement to Fox News Digital, Pacific Life declined to comment on the details of the lawsuit.

“To maintain the privacy and trust of our customers, Pacific Life does not comment on the details of individual matters. For nearly 160 years, we have been committed to fairness, integrity and acting in the best interests of our customers – and we continue to take that responsibility seriously. Pacific Life offers many different life insurance products, each with unique characteristics that are important to understand before making a decision. We encourage individuals to visit our website or contact their financial advisor to learn more about our products.”

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