An Advisors' Guide to Excess & Surplus Disability Insurance

Unique Insurance Solutions for College & Football Players

Posted Wed, Aug, 14th, 2019
By Exceptional Risk Advisors

Would you insure a $15 million home? A personal art collection? A fleet of unique and rare automobiles? What about intangible assets, like a lucrative contract or your physical ability and good health? For football players, their ability to play is their greatest asset. It's their ticket to potential future income.  Below are some unique insurance solutions for college and football players.

A college football player who is draft eligible is suitable for a draft protection policy. This safety net will protect the college athlete during their college career on and off the field leading up to Draft Day. This is key because college athletes must stay in school for at least three years before becoming draft eligible. Typical coverage includes off-season workouts, preseason, regular season, combines and pro-days.

Case in point is Clemson’s star quarterback Trevor Lawrence. Although he just finished his freshman year, most experts agree that Lawrence could step in right now and make NFL dollars. However, NCAA rules dictate he must stay in school for an extra two years. This means there’s two more years of football where he could blow out a knee. This is when the proper insurance product would give him the peace of mind he needs and warrants.

After securing a draft spot with a professional football team, a player enters into a 4-year rookie contract. This should be cause for celebration considering 1.5% of all NCAA football players are fortunate enough to become professional athletes. Just like the sport, a professional football career timeline is quick and can change on a dime. The average NFL player’s career is roughly 3.5 years, leaving little time to earn and build wealth. The strenuous physical demands of the game can result in a career-ending injury, which could further limit a rookie player’s earning potential. Rookie players require unique insurance policies that protect future contracts and preserve wealth. Such policies can cover permanent total disability and loss of value due to a serious injury or illness.

Download NFL Insurance Protect One-Pager for Details

After the rookie contract plays out, the big payday contract is now in sight. These big payday contracts can range up to $135 million, but the catch is that it’s not all guaranteed money. A typical contract will guarantee a percentage of the total, so a player could potentially leave a good chunk of money on the table if they go down with a career-ending injury or illness. With a high limit disability insurance policy, coverage protects a player’s non-guaranteed earnings, so they can focus on the game.

We recently worked with an NFL quarterback who led his team to a Super Bowl victory and had one more year left before his free agency. The market value for his next contract was estimated at over $150 million. To protect himself during off-season training and travel plans, he needed an insurance policy in place to get him to the next contract. It was apparent that if the player suffered an injury or illness resulting in a permanent total disability, then his future contract money would be lost.

Exceptional Risk Advisors worked with the player’s insurance advisor and business manager to develop a $25 million permanent total disability policy that protected his future income in the event the player became permanently totally disabled. This benefit gave the player peace of mind that if he suffered a serious injury or illness during the off-season and into the new football season, his future multi-million-dollar estate would be protected.

Download NFL Quarterback PTD Case Study