NASCAR legend Kyle Busch and his wife Samantha are taking legal action after losing over $8.5 million.
In a statement released this week, the NASCAR power couple revealed that they had initiated legal proceedings against insurance company Pacific Life relating to what they call a 'devastating' financial scheme tied to an Indexed Universal Life (IUL) insurance policy.
The Buschs allege that Pacific Life promoted a series of complex IUL policies as 'tax-free retirement plans' that were misrepresented as safe, self-funding investment vehicles.
However, it is claimed that Pacific Life "used misleading illustrations, undisclosed costs, and false promises of guaranteed multipliers and controllable charges" to get the couple to stump up more than $10.4 million in premiums, which have resulted in Kyle and Samantha losing in excess of $8.58 million.
Kyle Busch reacts to insurance legal battle
Speaking as part of a press release, two-time Cup Series champion Busch claimed the scheme was a financial trap.
"I never thought something like this could happen to us," Kyle said.
"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. What was pitched as retirement income turned out to be a financial trap."
Elsewhere, Samantha Busch added: "Now that we are going through this process, I am learning how completely misrepresented these products can be when they're sold.
"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, and I want people to be aware and protect their financial future.
"If sharing our experience helps even one person protect their financial future, then speaking out is worth it."
