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Two-time NASCAR Cup Series champion Kyle Busch and his wife are warning the public about an alleged life insurance scheme that they claim caused their family to lose more than $8.5 million.
Busch and his wife, Samantha, issued statements 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-free retirement plans’ that were misrepresented as safe, self-funded investment vehicles.”
NASCAR Cup Series driver Kyle Busch (18) and his wife Samantha before the start of the 1000Bulbs.com race at Talladega Superspeedway in Talladega, Alabama on October 14, 2018. (Jasen Vinlove/USA TODAY Sports)
“According to the filing, defendants used misleading illustrations, undisclosed costs, and false promises of guaranteed multipliers and controllable charges to induce the Busches to pay more than $10.4 million in premiums, resulting in net out-of-pocket losses of more than $8.58 million,” said a news release from RP Legal, which represents the Busches.
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Busch said in a statement provided by the firm that he was dragged 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, something sure to grow tax-free and protect our family long after we compete. We trusted the people who sold them and the Pacific Life name. But the reality is much different. What was presented as retirement income turned out to be a financial trap.”
Samantha Busch echoed that sentiment, adding that her situation “makes me worry about families, retirees and anyone trying to responsibly plan for their future who may be hearing those same promises.”
NASCAR Cup Series driver Kyle Busch’s wife, Samantha Busch, before the AAA Texas 500 at Texas Motor Speedway in Fort Worth, Texas on November 3, 2019. (Peter Casey/USA TODAY Sports)
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“If this can happen to us, it can happen to anyone, and I want people to be aware and protect their financial future,” he added. “If sharing our experience helps even one person protect their financial future, then it’s worth talking about.”
IULs are a type of life insurance that allows policyholders to build cash value based on the performance of a stock index while also offering a death benefit, but their returns are limited by limits, reduced by fees, and rely on complex formulas that can make them riskier than they seem.
The Busches say the policies were riskier and more complex than they were led to believe.
NASCAR Cup Series driver Kyle Busch (8) before practice and qualifying for the NASCAR Cup Series Xfinity 500 at Martinsville Speedway in Martinsville, Virginia, on October 25, 2025. (Greg Atkins/Image Images)
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“This is not just a problem for celebrities or professional athletes. It is a problem for everyday Americans,” attorney Robert G. Rikard said in a statement. “Across the country, teachers, small business owners and retirees are being sold complex life insurance contracts as if they were simple, risk-free retirement plans. The danger 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 easily this can happen. Our mission is to hold the industry accountable and help families recover what they have lost.”
In a statement to Pak Gazette 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 this responsibility very seriously. Pacific Life offers several different life insurance products, each with unique characteristics that are important to understand before making a decision. We encourage people to visit our website or contact their financial advisor to learn more about our products.”
