A major life insurance provider is asking a federal court to dismiss a lawsuit brought by NASCAR driver Kyle Busch and his wife, arguing that the couple allowed their life insurance policies to lapse and are now attempting to shift responsibility for their own financial decisions.
In a motion filed this week, the insurer said the Busches failed to keep up with required premium payments on several indexed universal life policies, causing them to lose any potential long-term value. The company contends the policies were never designed to generate short-term returns and depended on consistent funding over time.
The lawsuit, filed last year, claims the Busches were misled into purchasing the policies as part of a strategy promising tax-free retirement income. The couple alleges they paid more than $10 million in premiums between 2018 and 2022 for multiple policies that ultimately produced no meaningful value. They are seeking to recover roughly $8.5 million.
The insurer disputes those claims, stating that the policies clearly outlined their structure and risks. According to the filing, the Busches agreed in writing that they were responsible for monitoring the policies and ensuring timely payments. The insurer also said policy illustrations provided at the time of purchase detailed how long-term premium contributions were necessary for growth.
The company further argued that the complaint relies on what it described as exaggerated language rather than specific evidence of wrongdoing. It said the policies are regulated products approved nationwide and that no guarantees of future performance were ever made.
The Busches, however, say the complexity of the products left them dependent on guidance from the insurer and its sales agent. They claim they were told the policies would become self-sustaining after a limited number of payments and later discovered that was not the case.
In response to the dismissal request, counsel for the Busches said the insurer is attempting to deflect from the substance of the allegations by pointing to fine print and technical disclosures. The couple maintains that the case raises broader concerns about how indexed universal life policies are marketed.
The case remains pending in federal court, where a judge will decide whether the claims can proceed.
