NASCAR’s Kyle Busch, wife say they lost more than $8M in alleged life insurance scheme

CHARLOTTE — NASCAR champion -- and Lincoln County resident -- Kyle Busch is used to racing, risk, and big money.

But Kyle Busch and his wife, Samantha Busch, say they didn’t bargain for this. They claim they lost more than $8 million in -- what they’re calling -- a life insurance scheme. Now, they’re suing.

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“Planning for our future and, unfortunately, ours did not go well,” Kyle Busch said in a social media video the couple posted.

“We tried to do what we thought was best for our family,” Samantha Busch added in the video.

They say an agent sold them life insurance through Pacific Life. They claim the agent “failed to reveal the true risks,” that it was a “high-risk product, a “fundamentally flawed plan.” They say the agent promised they’d pay a certain number of premiums and then the policy would be “fully funded,” “self-sustaining,” and generate “tax-free income for retirement.” Their lawyer -- Robert Rickard -- says not so much.

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“They’re just misleading consumers every single day that this is a retirement plan that just happens to be a life insurance product. And it’s just not. It’s a life insurance product. It’s a very expensive one. It’s a very complicated one,” he told Action 9 attorney Jason Stoogenke.

There are different kinds of life insurance. You’ve probably heard words like term, variable, whole, and universal. The Busches say they bought -- what’s called -- ‘indexed’ universal life insurance (IUL). IUL is legitimate, but generally very complex and riskier. It’s based on the market, including stocks and bonds. You could do very well for yourself or not. There’s no guarantee.

Some of the biggest consumer advisors warn against IULs.

“In my opinion, from the ground up, they are structured so unfavorably for a consumer or an investor that they have no place in your portfolio. Period,” consumer adviser Clark Howard told Stoogenke.

Likewise, consumer adviser Dave Ramsey says, “Insurance is not an investment. Whenever you see an insurance product that also tries to be a savings or investment account, that’s a huge red flag.”

“This isn’t just happening to athletes and celebrities. This is happening to teachers, police officers, veterans,” Samantha Busch said.

Action 9 tried to contact the defendants in this case.

“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," Pacific Life stated in an email emailed.

The insurance agent didn’t respond in time for this report.

There are a lot of life insurance policies out there. So Stoogenke suggests you ask questions. If different agents give you different answers, you probably need more information. He also says shop around before committing to one. If you run into problems, reach out to your state’s department of insurance and/or a lawyer.

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