Kyle and Samantha Busch say Pacific Life and an insurance agent pushed them into a misleading insurance scheme.
LINCOLN COUNTY, N.C. — Two-time NASCAR Cup Series champion Kyle Busch and Samantha, his wife, have filed a lawsuit alleging they lost more than $8.5 million after being misled into purchasing complex life insurance policies marketed as safe retirement plans.
The complaint, filed on Oct. 14 in Lincoln County, accuses Pacific Life Insurance Company of misrepresenting Indexed Universal Life (IUL) policies as “tax-free retirement plans” that would provide secure, self-funding income for the family’s future.
“I never thought something like this could happen to us,” Kyle Busch said in a statement. “These policies were sold to us as part of a retirement plan — something safe and secure that would grow tax-free and protect our family long after racing. We trusted the people who sold them, and the name Pacific Life. But the reality is far different.”
According to the lawsuit, the Busches paid more than $10.4 million in premiums based on what they allege were misleading illustrations, undisclosed costs and false promises of guaranteed returns. The net out-of-pocket loss exceeds $8.58 million after accounting for the policies’ remaining cash value, which the lawsuit claims continues to erode due to rising costs.
The complaint claims an agent, operating through his business, and Pacific Life marketed the policies using speculative projections that failed to disclose the true risks and costs involved. The lawsuit alleges the defendants portrayed the products as low-maintenance investments rather than high-risk insurance contracts.
“What was pitched as retirement income turned out to be a financial trap,” Kyle Busch said.
Samantha Busch said the experience has made her concerned for other families planning for retirement.
“Now that we are going through this process, I am learning how completely misrepresented these products can be when they’re sold,” she said. “It makes me worry about families, retirees, and anyone trying to plan responsibly for their future who may be hearing those same promises. If this could happen to us, it could happen to anyone.”
The lawsuit accuses Pacific Life of failing to properly supervise the agent despite what the Busches claim was a disciplinary history. The complaint alleges the company prioritized commissions over policyholder interests.
The Busches claim the defendants breached fiduciary duties by acting as financial advisors while failing to disclose conflicts of interest and the true nature of the products.
The lawsuit asserts violations of North Carolina’s Unfair and Deceptive Trade Practices Act, citing misleading marketing, failure to disclose risks, and improper tax advice.
The Busches are seeking actual damages, consequential damages, treble damages, punitive damages, and attorneys’ fees. They also request a jury trial.
Robert Rikard, an attorney representing the Busches, said the case reflects a broader national issue.
“This is not just an issue for celebrities or professional athletes. It is an issue for everyday Americans,” Rikard said. “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.”
Rikard said IUL policies are often aggressively marketed with promises of tax-free retirement income through policy loans, but rely on speculative projections that shift all risk to consumers. He said victims often discover years later that escalating costs and shrinking cash values have erased their savings.
“The danger lies not in the product itself, but in how it’s marketed and presented as guaranteed paths to retirement security,” Rikard said.
His firm has represented more than 400 clients in IUL-related cases and recovered tens of millions of dollars from insurance companies and agents.
The Busches said they decided to speak publicly about their experience to warn others who may be considering similar products.
“If sharing our experience helps even one person protect their financial future, then speaking out is worth it,” Samantha Busch said.
Pacific Life Insurance Company responded Wednesday to WCNC Charlotte’s request for comment on the situation, saying:
“To maintain the privacy and trust of our clients, Pacific Life does not comment on the specifics of individual matters. For nearly 160 years, we have committed ourselves to fairness, integrity, and acting in the best interests of our clients – 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 individuals to visit our website or contact their financial advisor to learn more about our products.”
Kyle Busch won the 2015 and 2019 NASCAR Cup Series championships. He’s won 60 races, tied for the ninth most all-time. He currently drives the No. 8 Chevrolet for Richard Childress Racing.