Insurance

One can do this, it is very expensive, and one has to be able to afford the policy.

I don't really get a college athlete insuring himself against a career ending injury but if you have the money to do it, go for it.

Lloyds of London is famous for these kinds of policies. They insure athletes. super models and other celebrities for potential loss of income due to injury or disfigurement. Pro sports franchises will insure huge contracts in case the player becomes injured and they have to pay him.

A player who took a huge risk was Willie Magahee of University of Miami. He had what was considered a career ending injury in college. He could have collected a big check. He attempted a comeback even though all the specialists who examined him said his knee was shot. When he showed up for the first day of the Bills training camp he forfeited the right to make a claim.

I have purchased one of these policies. Found it to be extremely affordable. Found it to be extremely prophetic. And yes, you do forfeit the policy once you become active again in your particular sport. For baseball it was 6 appearances after a Tommy John surgery.

deldad - great to see you posting, we continue to think of your family and appreciate your input on this site.

I thought what you said about the policy being prophetic was interesting...here is a quote from Oklahoma quarterback Sam Bradford's dad regarding his insurance policy which was made prior to Bradford's recent injury, "The odds of a kid getting a career-ending injury is slim. But if it did happen, and you had the chance to insure, chances are you would feel pretty dumb. You're insuring earnings power."

I don't think that Sam Bradford's injury is career ending but it sounds like he is covered just in case. It was big news in this area this week when Sam Bradford traveled to Alabama to see Dr. Andrews. At first fans looked at this as a bad sign until it was revealed that his insurance policy required that he be seen by Dr. Andrews before being cleared to play.

Colt McCoy, Texas quarterback also took out an insurance policy this summer. Here is a quote from his dad, "The premium is astronomical," said Brad McCoy. "But the payback in the event of a catastrophe puts the monetary value there. We felt it was the prudent thing to do."

Colt McCoy Insurance Policy

I wonder what the definition of "Astronomical" is for Brad McCoy? $10K, $100K?

EC Dad - I would assume that the rate depends in part on the amount of the policy. Based on the ESPN article it sounds like McCoy's policy is for between $3 and $5 million, I am not sure what the premiums would be for something in this range. Mr. McCoy is a high school football coach in Graham, Texas. He also has a wonderful singing voice, he was the soloist in a wedding I attended a few years ago.

If I remember correctly it was about 1% of the face value.

If a player is not gainfully employed, then 10K is astronomical, unless his parents can pay for it.


I was wondering, how can it be career ending when one has not begun his career? I am going to assume, it might actually be insuring parts of the body?

I wonder how prevalent this is?

With the athletes such as Bradford and McCoy having options (turning pro or return for their junior or senior year) wonder how much the schools, boosters, car salesman helps them with their premiums.
Probably not at all huh!

1% would still be $30K - $50K, which I would agree is astronomical. (Talk about tapping into your retirement to cover that as a parent). I guess you get it back as long as the player gets drafted and signed for the expected amt or gets hurt and cannot play. The worst case scenario is he does not get hurt but struggles and does not get signed for the expected amt.

I guess there are only a select few at the top of their game that have to make that decision on such a high priced premium.

Tonight, I'm reading the Student-Athlete manual for a major university and came across this paragraph:

"Student Disability Insurance
In accordance with NCAA legislation, an individual may borrow against his or her potential future earnings from an established, accredited financial institution exclusively for the purpose of purchasing insurance (with no cash surrender value) against a disabling injury or illness that would prevent the individual from pursuing a chosen career...."

I wonder if this is the same thing?