Pacific Life has spent years marketing its Indexed Universal Life (IUL) products as innovative retirement solutions – advertising concepts like “tax-free income,” “market-driven growth,” and “secure retirement planning.” For many consumers, these promises sounded like a smarter, more flexible alternative to traditional accounts like 401(k)s or IRAs.
Thousands of policyholders are now learning that the promises they were sold do not match the reality of how these products behave. Many have discovered rising fees, declining cash value and unexpected premium demands. Even worse, some policies are projected to lapse long before retirement, erasing years of contributions.
In 2025, these concerns reached national attention when NASCAR champion Kyle Busch and his wife Samantha filed a lawsuit against Pacific Life after discovering their IUL policies were on the verge of collapse, despite having paid millions in premiums. The Kyle Busch IUL Lawsuit has become a wake-up call for consumers across the country.
If you believe you have been fraudulently misled by a Pacific Life IUL agent, even believing it was a retirement or investment plan, give us a call (803) 805-7546 or schedule a free consultation online.
How Pacific Life Marketed IULs as Retirement Plans
For more than a decade, Pacific Life’s marketing and agent training materials emphasized IULs as powerful “retirement solutions.” Instead of being framed as life insurance (which they are), IULs were often presented as long-term wealth-building tools.
Sales scripts commonly included promises like:
- “You’ll receive tax-free retirement income.”
- “Your money grows with the market but without the downside.”
- “After a short premium period, the policy will fund itself.”
- “This performs better than a 401(k) or IRA.”
- “This is what the wealthy use for retirement planning.”
These lines left consumers with the impression that an IUL was simple, safe and reliable.
But the truth is that IULs are nothing like traditional retirement plans:
- They have fluctuating fees
- They rely on illustrated (not guaranteed) crediting rates
- They require careful long-term management
- They can fail if not designed properly
- They involve insurance-related expenses that escalate over time
These risks were rarely explained to consumers in clear terms. Instead, many were shown optimistic illustrations that made the products appear safer and more lucrative than they are.
This sales pattern is now part of a growing investigation into Pacific Life IUL misrepresentation.
Why Many Consumers Now Feel Misled by Pacific Life IUL Policies
As policyholders approach retirement age – or review their annual statements – many discover that their policies are underperforming or deteriorating.
Common problems consumers report include:
- Cash value declining despite large premium payments
- Receiving unexpected premium notices
- Policies no longer projected to support retirement income
- High internal charges that were never fully explained
- Illustrations that no longer reflect real performance
- Difficulty getting straight answers from agents
These problems mirror what surfaced in the Kyle Busch IUL Lawsuit. Despite being told that their policies would generate $800,000 per year in tax-free income, the Busches found the policies were likely to lapse in less than two years—potentially wiping out over $10 million in premiums.
Their experience raised an important question:
If this could happen to a multimillionaire with access to advisors, how many everyday consumers have been misled?
The Hidden Complexity Behind Pacific Life IUL Products
IULs are not simple retirement tools. Their value depends on numerous variables—many of which consumers never understood.
Key components most consumers never had explained
- Cost of Insurance (COI) rises every year, often sharply
- Premium loads & administrative fees reduce early cash value
- Caps & participation rates limit growth even in strong markets
- Market index performance affects crediting, but you don’t receive real market returns
- Illustrations rely on optimistic future assumptions
Regulators warn that illustrations are not predictions but scenarios based on maximum allowable assumptions.
Even slight changes in caps, crediting rates or COI increases can cause long-term damage to an IUL – especially one sold as a retirement plan.
Policyholders often don’t realize they are falling behind until it’s too late.
What the Kyle & Samantha Busch Lawsuit Reveals About Pacific Life’s Practices
The Busch v. Pacific Life lawsuit is the most widely documented case of alleged IUL misrepresentation in the U.S. The lawsuit accuses Pacific Life and its agent of:
- Structuring the policies to maximize agent commissions
- Inflating the death benefit to drive up internal charges
- Using aggressive five-pay designs that are harder to sustain
- Illustrating unrealistic long-term returns
- Failing to warn of early-lapse risk
- Misleading consumers about the policy’s ability to generate tax-free income
The complaint argues that Pacific Life allowed agents to manipulate policy structures in ways other carriers do not—making it easier for consumers to be misled.
The lawsuit has become the foundation for Pacific Life IUL investigations nationwide.
Together, these sources paint a picture of a product that was often sold based on promises rather than performance.
How to Tell if Your Pacific Life IUL Was Mis-Sold
If you purchased a Pacific Life IUL because it was sold as an “investment” or “retirement plan,” these red flags may indicate misrepresentation.
Checklist for Policyholders
- Your cash value has not grown as projected
- You were told the plan would provide guaranteed tax-free income
- You were shown optimistic illustrations without clear risks
- You received new premium notices after being told funding would be complete
- Your policy’s death benefit seems unnecessarily large
- You cannot get a clear explanation from your agent
- Your in-force illustration shows the policy may lapse early
If any of these apply, your policy may have been designed in a way that favored commissions over sustainability. Give us a call: (803) 805-7546 or schedule an appointment online.
What to Do If You Purchased a Pacific Life IUL as a Retirement Strategy
Whether you purchased the policy recently or years ago, you still have options.
Steps consumers should take immediately
- Request a current in-force illustration
- Compare actual performance to your original illustration
- Review whether internal charges have increased
- Determine if the policy is projected to lapse
- Seek independent legal or financial review before making changes
- Avoid surrendering or modifying the policy without guidance
If your Pacific Life IUL was mis-sold as a retirement plan, you may be entitled to financial recovery.
Financial and Insurance Firms We Target
Insurance Companies
- Allianz
- Columbus Life
- Family First Life
- MetLife
- Minnesota Life/Securian Financial
- National Life Group
- Pacific Life
- Protective
- Prudential
- Transamerica
Financial Firms
- Ameritas
- Equis Financial
- Equitable AXA
- Five Rings Financial
- Global Atlantic (Accordia)
- Integrity Marketing Group
- John Hancock
- LifePro Financial
- Mutual of Omaha
- North American
- Penn Mutual
- PHP Agency
- Symetra
- Symmetry Financial Group
- World Financial Group
IUL Lawsuits Nationwide
At RP Legal LLC, we handle IUL cases nationwide, bringing empathy and expertise to every client. No matter where you are, we’re here to help.
Recover Losses from a Mis-sold Pacific Life IUL Retirement Plan
Pacific Life marketed its Indexed Universal Life policies as powerful retirement strategies capable of generating tax-free income and long-term stability. But for many consumers, those promises have not matched policy performance. High fees, complex policy mechanics, unrealistic illustrations and poor disclosure have left countless policyholders wondering whether they were misled.
The Kyle Busch Pacific Life lawsuit exposed how harmful misrepresented IUL retirement plans can be – even for sophisticated buyers.
If you were sold a Pacific Life IUL as a retirement or investment product, RP Legal is actively evaluating these cases and helping policyholders pursue recovery for misleading or unsuitable policies.
Schedule a confidential consultation today. Give us a call: (803) 805-7546 or schedule an appointment online.