Pacific Life Indexed Universal Life (IUL) Investment Losses

Pacific Life Indexed Universal Life (IUL) Investment Losses: What Investors Need to Know

November 2025 Update – Pacific Life Indexed Universal Life (IUL) Complaints and Investor Claims

Two-time NASCAR Cup Series champion Kyle Busch and his wife, Samantha, recently announced they suffered $8.6 million in losses after investing in a series of Pacific Life Indexed Universal Life (IUL) insurance policies. According to their complaint, the couple alleges they were sold a “devastating financial scheme” disguised as a tax-free retirement plan.

Their story indicates concerns that many investors have raised regarding IUL investment losses, misleading sales practices, and the complexities of these products—especially when marketed as low-risk retirement strategies.

Below is an overview of the allegations, how IULs work, and what options may be available if you believe you were misled about a Pacific Life IUL.

Allegations Against Pacific Life and Its Agent

According to the Busches’ filing and public statements:

• Pacific Life and its agent allegedly marketed the IUL policies as safe, tax-free retirement plans.

• The products were promoted as self-funding investment vehicles with guaranteed growth multipliers and controllable fees.

• The couple was allegedly shown misleading illustrations and projections that did not reflect the true costs or risks of the policies.

• The complaint states they paid over $10.4 million in premiums, resulting in more than $8.58 million in net losses.

Kyle Busch said he never expected this kind of financial harm from a product sold under the Pacific Life name, noting:

“These policies were sold to us as part of a retirement plan — something safe and secure… What was pitched as retirement income turned out to be a financial trap.”

Understanding Indexed Universal Life (IUL) Insurance

An Indexed Universal Life insurance policy is a hybrid product that includes:

• A life insurance death benefit

• A cash value component

• Credit interest tied to a market index, such as the S&P 500

IULs are frequently marketed as offering market-linked upside with downside protection, but they also include:

• Complex and often undisclosed fees

• Moving parts such as caps, participation rates, and spreads

• Cost-of-insurance charges that can increase dramatically over time

• Risks of underperformance when market expectations do not align with illustrations

When projections are overly optimistic—or when agents fail to disclose risks and costs—investors may face large and unexpected investment losses, as alleged in the Busch complaint.

Growing Allegations of IUL Misrepresentation

According to Busch’s attorney, after uncovering the issue, they found other investors who also lost money in Indexed Universal Life policies, raising the possibility of wider misconduct in how these products have been marketed.

Many investors report similar concerns, including:

• Aggressive promotion of IULs as “tax-free retirement plans”

• Promises of guaranteed income

• Claims that IULs can pay for themselves

• Failure to disclose escalating internal costs

• Inaccurate or misleading performance illustrations

If these statements were used to sell an insurance product, investors may have grounds for a financial professional negligence claim.

Pacific Life IUL Investment Losses: Your Options

If you invested in an Indexed Universal Life policy with Pacific Life and believe you were misled about the risks, fees, or expected performance, you may be able to pursue a claim for investment losses.

Potential claims may involve:

• Misrepresentation or omission of material facts

• Unsuitable recommendations for complex insurance-investment products

• Breach of fiduciary duty

• Improper use of illustrations that exaggerated projected returns

Although IULs are insurance products—not traditional securities—claims involving sales practices, misleading illustrations, or unsuitable recommendations may still be actionable through FINRA arbitration, depending on how the product was sold and by whom.

How The White Law Group Can Help

The White Law Group represents investors nationwide in claims involving insurance-linked investment losses, including those related to:

• Pacific Life IULs

• Indexed Universal Life misrepresentation

• Improper sales of complex insurance-investment hybrids

Our firm has more than 30 years of experience representing investors in disputes involving deceptive sales practices, unsuitable recommendations, and fraudulent illustrations.

Free Consultation

If you or someone you know suffered losses in a Pacific Life Indexed Universal Life (IUL) policy, contact The White Law Group today for a free case evaluation.
Call (888) 637-5510 or visit our website to speak with a securities fraud attorney.

FAQs

FAQ: What are the risks of investing in a Pacific Life Indexed Universal Life (IUL) policy?

Although marketed as a low-risk retirement strategy, IULs carry significant risks, including increasing cost-of-insurance charges, performance caps, participation limits, and the possibility that the policy will underperform the illustrated projections. If these risks are not fully disclosed, investors may suffer large, unexpected losses.

FAQ: Can I recover losses from a misrepresented IUL sold by Pacific Life?

Possibly. Investors who were misled about the risks, fees, or expected performance of an IUL may be able to pursue claims for damages. Depending on how the product was sold, recovery may be available through FINRA arbitration, insurance complaints, or claims against the agent or brokerage firm that recommended the policy.

FAQ: How can The White Law Group help with Pacific Life IUL investment losses?

The White Law Group investigates sales practices involving Indexed Universal Life policies, including Pacific Life IULs. Our securities attorneys can review your case, evaluate whether the product was misrepresented or unsuitable, and help determine whether you may have a viable claim to recover investment losses.