Buschs sue Pacific Life over misrepresented IULs

Kyle and Samantha Busch filed a lawsuit Tuesday in North Carolina state court, alleging they were misled into buying a series of Indexed Universal Life insurance policies that they were told would serve as tax advantaged, self‑funding retirement plans but instead cost them more than $8.58 million after paying over $10.4 million in premiums. The complaint names Pacific Life Insurance Company and an appointed agent as defendants and accuses them of deceptive marketing, negligent misrepresentation and other violations.

According to the complaint and statements from the Busches’ lawyers, the couple were told the products would provide tax free retirement income and long term growth while protecting their family. The lawsuit says the policies carried undisclosed fees, relied on unrealistic performance projections and shifted the financial risk to the policyholders. The Busches say they received a sixth premium notice on what they believed was a five year payment plan, and an independent review found the policy would lapse in about 16 months, eliminating most of the invested cash value.

“I never thought something like this could happen to us,” Kyle Busch said in a statement. “These...