Kyle Busch Alleges Considerable Losses in Indexed Universal Life (IUL) Scheme
From the desk of Jim Eccleston at Eccleston Law
Kyle Busch, a two-time NASCAR Cup Series champion, and his wife Samantha announced that they lost more than $8.6 million in what they describe as a “devastating financial scheme” involving an Indexed Universal Life (IUL) insurance policy. InvestmentNews reports that in a public statement, the couple accused Pacific Life and one of its agents of promoting a series of complex IUL policies as “tax-free retirement plans” that were portrayed as safe, self-funding investment strategies.
According to the complaint, the defendants allegedly presented misleading illustrations, concealed charges, and gave assurances of guaranteed multipliers and controllable costs to persuade the Busch family to pay more than $10.4 million in premiums. The filing states that those representations left the couple with net out-of-pocket losses exceeding $8.58 million. Pacific Life told the Associated Press that it does not comment on individual client matters to protect customer privacy, according to InvestmentNews.
The dispute centers on an IUL product that combines traditional life insurance with a cash-value component tied to a market index. The policies typically are marketed with features designed to buffer policyholders from market losses. InvestmentNews reports that the Busch couple chose to go public to highlight the issue.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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