Don’t Beat Around the Busch: How to Design Life Insurance That Stays in Its Lane
Once again, life insurance is back in the spotlight — and not for the right reasons. If you've been following recent financial headlines, NASCAR superstar Kyle Busch and his wife, Samantha, have filed a lawsuit alleging losses tied to certain life insurance policies.
As I often say, structure matters. What appears to be an unfortunate and complex situation should serve as a wake-up call for professionals in tax, estate, and wealth management — and, more importantly, as a reminder for consumers to fully understand what they're buying when it comes to financial products and insurance solutions.
The Busch's allege they lost millions as part of an insurance setup. While much remains to be clarified, the situation highlights key lessons worth remembering:
Key Takeaways from the Filing
- Over-Promised, Under-Delivered: The policies were reportedly sold with "rosy" projections of tax-free retirement income that would fund themselves after just a few years. The Busch's were seemingly made unaware of potential critical risks — including policy charges, non-guaranteed crediting rates, and the possibility of lapse without additional funding.
- Advisors and Oversight: The filing alleges that insurance company acted not just as the insurer, but as a "co-advisor," along with other professionals involved in establishing the insurance contracts. Internal emails urging "immediate funding" are now part of the legal debate over fiduciary responsibility and advice presented.
- Far from a Victory Lap: The Busch's claim to have paid roughly $10.4 million in premiums and to be facing more than $8.5 million in losses, plus lost investment opportunities and distress.
While these details continue to unfold, one truth remains constant: life insurance is a cornerstone of sound financial planning. But — like any race car — performance depends on how it's built, maintained, and driven.
Structure Drives Performance
Amount of Coverage:
Life insurance is, first and foremost, a protection instrument. Determining the right amount of death benefit is the most important step. Whether the goal is income replacement, debt payoff, or business continuity, the amount of coverage should reflect the risk being managed.
Type of Insurance:
Broadly speaking, there are two main categories of life insurance — temporary (term) and permanent.
Temporary (Term) Life Insurance
Term life insurance does one thing and does it exceptionally well: it provides an income tax-free payout to beneficiaries if the insured passes away during the coverage period. Premiums are typically level for 10, 20, or 30 years, and the policy ends afterward.
It's simple, efficient, and designed for protection — not investment. For most families and businesses, term life insurance is the right vehicle. It's like running a reliable stock car: affordable, predictable, and built for the core purpose of protection.
Permanent Life Insurance
Permanent life insurance, by contrast, is designed to last for the insured's lifetime and some may build cash value. These policies can be powerful tools for estate planning or advanced strategies, but they come with complexity and moving parts. They must be carefully designed, adequately funded, and reviewed regularly just as any other part of a financial or business plan.
As the Busch case shows, misaligned expectations between policy performance and client goals can lead to unwanted outcomes. Permanent insurance has a place — but it's a niche solution, not a default one hyped about by promoters or influencers.
Designing a Winning Policy
Just like a race car, every life insurance policy has multiple components that need to work in harmony. When one element is off balance, performance and reliability suffer.
A well-structured life insurance plan should consider these five key design factors:
- Purpose Before Product
Always start with the "why." Is the goal protection, liquidity, wealth transfer, or tax diversification? The purpose determines the product — not the other way around. - Realistic Assumptions
Policy illustrations are projections, not guarantees. Sound design stress-tests the policy under conservative assumptions to ensure it remains viable even when markets or interest rates shift. - Funding Discipline
A policy's success depends on the right funding. Underfunding is like starting a race with half a tank — you might look great off the line, but you won't finish strong. - Ongoing Maintenance
Life insurance isn't "set it and forget it." Regular policy reviews — ideally on an annual basis — help ensure the strategy stays aligned with goals, market conditions, and personal circumstances. - Transparency and Accountability
Clients deserve full clarity on costs, risks, and assumptions. Understanding how premiums, charges, and loan features interact is essential to avoiding unpleasant surprises later.
When these elements are tuned properly, a life insurance policy can operate like a high-performance machine — efficient, reliable, and built to go the distance.
The Final Lap
In racing, success depends on more than just speed — it's about precision, timing, and teamwork. Financial planning is no different. The right insurance structure, combined with experienced guidance, can help families and business owners protect what matters most while staying on course toward their long-term goals.
Before taking the green flag on any insurance strategy, make sure you understand the mechanics, assumptions, and maintenance required. When purpose, structure, and expert advice come together, you're positioned not just to finish the race — but to take the checkered flag.
Pit Crew Perspective
At ArisGarde, we believe every client deserves a policy designed for their goals — not just their premiums. Our process begins by defining your objectives, then modeling multiple funding and market scenarios to ensure your coverage is sustainable and transparent. And just like any winning pit crew, we stay by your side — reviewing, adjusting, and fine-tuning along the way.
About the Author:
Joshua Friedlander is the Managing Partner of ArisGarde, an independent wealth management and insurance design firm based in Charleston, South Carolina. Since 2008, he has worked with affluent families, entrepreneurs and their professional team on comprehensive personal, estate, and business planning strategies.
Joshua has been recognized by Forbes SHOOK Research as one of America's Top Financial Security Professionals each year since 2022, including being named #1 Best-in-State for 2025. Originally from New York, he now calls the Charleston area home, where he and his family enjoy everything the Lowcountry has to offer.
Receipt of an award should not be construed as an endorsement of the financial professional and is no guarantee of future investment success.
Securities and investment advisory services offered through Integrity Alliance, LLC, Member SIPC. Integrity Wealth is a marketing name for Integrity Alliance, LLC. ArisGarde is not affiliated with Integrity Wealth. show less