An Advisors' Guide to Excess & Surplus Disability Insurance

MLB DI Buying Season Begins Now!

Posted Wed, Jan, 11th, 2023
By Exceptional Risk Advisors

When most people think of professional athletes, they tend to think of players who have long and successful careers.  However, the average MLB player's career is a little more than five years, which leaves a short time to build wealth.  Coverage is needed to protect player's potential future earnings.

Starting now through February is when we typically see the bulk of MLB athletes purchase disability coverage.  With players heading into off-season workouts, spring ball, combines, and pro-days, there is a keen focus on protecting their incomes prior to getting back into the gym or on to the field.  

The MLB team owns the players rights until they hit the number of years of service which makes them eligible for free agency, meaning the athlete cannot negotiate with another team for a better offer.  Every year leading up to free agency, the athlete will need to sign a contract to play that season on that team.  Once they have hit the required years of service, the athlete is available for free agency.  While working towards free agency, players should protect themselves during the team-controlled years.  Such coverage includes permanent total disability protection.

The major intent of the disability coverage MLB players purchase is to insure their future projected income when heading into free agency.  For professional athletes, their ability to play is their greatest asset.  It is their ticket to potential future income - on the court/rink/field/course and off

Download Athlete Brochure

For example, we recently worked with an outfield and designated hitter who was in their last year of current contract and approaching free agency.  The super star player was projected to sign a five-year $105 million contract.  The advisor on the case was challenged with securing an adequate amount of permanent total disability to safe-guard the player against a career-ending injury or illness.  Working with the advisor, the player's agent and financial advisor, we developed a $25 million permanent total disability policy to pay a lump sum benefit in the event the player became permanently totally disabled.

Download MLB Case Study

With a player's name, we are able to provide a review for each client - maximum benefit available, insurability of future earnings going into free agency, etc...  If you are interested in learning more about how to tap into the sports insurance space, please schedule a meeting with our business development team.