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Does anyone know injury insurance works?

Applecane

Recruit
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Nov 5, 2011
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191
Insurance is always mentioned in discussions about whether players should or should not declare for the NFL.

What much does it cost? What is the range of payouts? How are the payouts calculated? Do boosters pay players to get it? Do parents take out loans to pay for it?
 

Cryptical Envelopment

Fare you well, fare you well
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This is old data, as I had to look into this once a long while ago for something, but if its still the same, a player can get insurance for a certain percentage, or in some cases, all of their projected first contract. Of course the underwriters determine the value. They don't want to over-insure you or you could be incentivized to not fight back from an injury.

You actually don't pay your premium upfront. Its deferred until you sign. Of course if you get injured and don't get that big contract, then you get paid out, minus the premiums you owe. Lloyd of London and their subsidiaries are/were the big player in the space.

Craig Erickson was able to collect IIRC.
 

ATL-BRAD

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Nov 3, 2011
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I own an Insurance agency. These policies are just like any other life insurance It’s a stated value. So if you want $1 million worth of coverage you select $1 million and then you pay the premium. There are always limitations and exclusions just like in any other financial contract. I’ve never written one of these up but If my assumption is correct. The language can be very specific on what would have to cause the career to be over. Just like in a life insurance policy there are certain things and ways that you can’t die if it’s in the language.
 

Empirical Cane

We are what we repeatedly do.
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Sep 3, 2018
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17,457
This is old data, as I had to look into this once a long while ago for something, but if its still the same, a player can get insurance for a certain percentage, or in some cases, all of their projected first contract. Of course the underwriters determine the value. They don't want to over-insure you or you could be incentivized to not fight back from an injury.

You actually don't pay your premium upfront. Its deferred until you sign. Of course if you get injured and don't get that big contract, then you get paid out, minus the premiums you owe. Lloyd of London and their subsidiaries are/were the big player in the space.

Craig Erickson was able to collect IIRC.
Rusty Medaris I believe as well.
 

NC_Canes_11

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Jul 5, 2017
Messages
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Depending on the language in the contract you can get policies that pay up to the value of what you lost in the draft. If you were slated to go first round and got hurt, then dropped to the 3rd you can collect the difference.

Im assuming they would have to get official draft grades, not a online or Kiper/McShay mock.
 
Joined
Sep 25, 2018
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I know that McGahee had insurance and would have earned about $4 mill tax free if he didn't get drafted or could play...
Thankfully his brother is a great trainer and Willis literally rehabbed to still become a 1st rd pick.
 

Rellyrell

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Dec 19, 2013
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24,094
I own an Insurance agency. These policies are just like any other life insurance It’s a stated value. So if you want $1 million worth of coverage you select $1 million and then you pay the premium. There are always limitations and exclusions just like in any other financial contract. I’ve never written one of these up but If my assumption is correct. The language can be very specific on what would have to cause the career to be over. Just like in a life insurance policy there are certain things and ways that you can’t die if it’s in the language.

Bingo!
 
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Dec 12, 2012
Messages
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Player
I know that McGahee had insurance and would have earned about $4 mill tax free if he didn't get drafted or could play...
Thankfully his brother is a great trainer and Willis literally rehabbed to still become a 1st rd pick.

McGahee's was $2.5M, He declined it before the draft, He bet on Himself & won.
 
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