NASCAR champion Kyle Busch and wife allege they lost $8.5 million in insurance scheme: 'A financial trap'

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Two-time NASCAR Cup Series champion Kyle Busch and his wife are warning the public about an alleged life insurance scheme that they claim caused their family to lose more than $8.5 million.

Busch and his wife, Samantha, released statements Tuesday announcing that they have taken legal action against Pacific Life for allegedly "designing and promoting a series of complex indexed universal life (IUL) policies as ‘tax-free retirement plans’ that were misrepresented as safe, self-funding investment vehicles."

NASCAR Cup Series driver Kyle Busch (18) and his wife Samantha stand prior to the start of the 1000Bulbs.com at Talladega Superspeedway in Talladega, Alabama, on Oct. 14, 2018. (Jasen Vinlove/USA TODAY Sports)

"According to the filing, the defendants used misleading illustrations, undisclosed costs, and false promises of guaranteed multipliers and controllable charges to induce the Busches to pay more than $10.4 million in premiums, resulting in net out-of-pocket losses exceeding $8.58 million," a press release from RP Legal, which is representing the Busches, said.

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Busch said in a statement provided by the firm that he was dragged into a "financial trap."

"I never thought something like this could happen to us," he said. "These policies were sold to us as part of a retirement plan—something safe and secure that would grow tax-free and protect our family long after racing. We trusted the people who sold them, and the name Pacific Life. But the reality is far different. What was pitched as retirement income turned out to be a financial trap."

Samantha Busch echoed that sentiment,