If you want retirement income, buy an annuity, not a life insurance policy. When you eventually annuitize on a life contingent basis, the income will be locked in, which is what you want to happen. As defined benefit pensions disappear, annuitizing a deferred annuity will be one of the few ways to collect income in a way that the income cannot be outlived.
Prospects should be suspicious of any life insurance policy proposal where significant amounts of policy loans or partial withdrawals are used to generate income. The policy loan is there for emergencies, not for constant use, same with partial withdrawals. If you don't know what so called "Infinite Banking" is, educate yourself, and make sure your product still works if someone decides to do that with it.
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John Blocher FSA, MAAA
Chief Risk Officer, VP & Actuary
Capitol Life Insurance Company
Dallas TX
469-522-4201
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Original Message:
Sent: 11-15-2025 20:17
From: Bruce Friedland
Subject: High-Profile IUL Misdeed in the News
Yes. I have read about this case. First, because Kyle Busch is a high profile personality, this case will get significant attention. There are articles everywhere.
From what I have seen, a significant amount of insurance was purchased to fund a "retirement plan." Something on the order of $44.5 million increasing death benefit payable with $1.5 million premium for 5 years, to take $800,000/year beginning at age 52.
Bobby Samuelson wrote an article about this and he determined that the target premium was a shade under $1.5 million and my takeaway from the article is that it appears the agent designed a plan to maximize commission. Indications are that the increasing death benefit was unnecessary and that an all base contract instead of base plus term was also unnecessary. So, this is a dial commission issue, where the policy appears to be significantly underfunded for its purpose.
Besides the agent, Pacific Life is also being sued.
My opinion from a distance is that this one will be hard to defend. 5 payments for $7.5 million total premium to guarantee coverage on $44.5 million seems questionable, let alone funding material withdrawals.
I also have read that Pacific Life has reached out to Busch and it is not clear that the Busch's want to settle, although we will see. Pac would do well to get this settled quickly in my view. The reputational damage grows by the day even if this was a good sale.
Bruce A. Friedland, MBA, FSA, MAAA, CLU, ChFC
Original Message:
Sent: 11/14/2025 6:55:00 PM
From: Dean Lambert
Subject: High-Profile IUL Misdeed in the News
Has anyone heard of this case involving NASCAR's Kyle Busch and an IUL policy with which he is now in litigation involving the agent and Pacific Life?
What are some takeaways?
https://finance.yahoo.com/news/kyle-busch-8m-loss-warning-113000437.html
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Dean Lambert
Executive Director
LIC
dlambert@limra.com
4753725298
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