Does anyone know injury insurance works?

[Applecane]

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]

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.

 

[ThomasM]

Curious... Do they sell this for husbands that anger their wives? Asking for a friend.

 

[ATL-BRAD]

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.

 

[ATL-BRAD]

Curious... Do they sell this for husbands that anger their wives? Asking for a friend.

Call the life insurance policy lol

 

[ThomasM]

Call the life insurance policy lol

I'd really rather collect without the need of a death certificate. I mean, my friend.

 

[Empirical Cane]

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.

 

[Cane47]

This thread caused me to think about Melvin Bratton and his unfortunate injury. Searching Google I came across the below 1990 article, which some of you may find of interest.

Dreaded Words: `Career Ending' -- Insurance Protects Athletes | The Seattle Times

 

[Heart of The Playmaker]

Rusty Medaris I believe as well.

Yes Rusty collected 500k tax free..equivalent to about $1.3 mill tax free today

 

[NC_Canes_11]

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.

 

[My2Sense]

McGahee took out a policy just before the Rose Bowl

 

[Heart of The Playmaker]

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]

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!

 

[CaneSince4Ever]

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.