Kyle Busch IUL lawsuit moved to federal court at PacLife’s request
November 26, 2025 by John Hilton
A lawsuit by NASCAR star Kyle Busch against Pacific Life and an advisor over a poorly performing indexed universal life insurance policy moved to federal court Thursday.
Busch and his wife, Samantha, filed the lawsuit in Lincoln County, N.C., state court, where the Busches live. The complaint accuses Pacific Life Insurance Co. and its appointed agent of designing and promoting a series of complex IUL policies as “tax-free retirement plans” that were misrepresented as safe, self-funding investment vehicles.
Wink’s Moore on the Market: The latest update on the Kyle Busch lawsuit involving indexed life-
“PacLife petitioned to move the case to federal court, noting that the insurer is organized in Nebraska, with a principal place of business in California. In addition, the advisor/defendant, Rodney A. Smith, is a resident of Arizona, and his business, Red River LLC, is organized in Nevada.”
And this seems like new information-
“Kyle Busch explained that he was assured that by contributing a million dollars annually for five years, he could withdraw $800,000 per year starting at age 52. Instead, he discovered his funds were being directed to the insurance company’s account rather than being invested in the market, preventing his investment from growing as markets rose.”
I don’t know how someone could do their own due diligence on a life insurance policy, and not realize that it is life insurance (for one) and not invested directly in the market (for two).
Is indexed life a “financial trap?”-sjm
