49ers bought $7.5 million insurance policy for Kaepernick

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When 49ers quarterback Colin Kaepernick agreed to give up his $14.5 million de facto insurance policy for 2017 as part of a restructured contract, the benefit for Kaepernick seemed to be limited. Put simply, he acquired the ability to hit the market next season, potentially allowing him to get more than the $14.5 million he was due to make next year, if he plays like he did in 2012 and 2013. He lost the protection against injury.

Via multiple reports, Kaepernick obtained different protection against injury. The team has purchased an insurance policy that will pay Kaepernick $7.5 million if he is sufficiently injured the rest of the way. The payment comes without taxes, which would simulate the take-home pay in California for the $14.5 million in injury guarantees he previously had for next year.

But the devil, as always, will have a tent pitched in the details. To give Kaepernick what he would have had without the new deal, Kaepernick needs to obtain the payment if he has an injury that keeps him from passing a physical before April 1. A policy like that, however, would be far more expensive than a traditional disability policy, which pays out only in the event of a career-ending injury.

Even if the policy says what it needs to say, Kaepernick risks an outcome in which his doctors believe he can’t pass a physical before April 1, but the doctors hired by the insurance company do. Which could force him to litigate the issue before ever seeing the money.

Which is very common when it comes to insurance company. Their sole commodity is money; thus, they love to harvest it as premiums. They hate to pay it out in the form of coverage.

15 responses to “49ers bought $7.5 million insurance policy for Kaepernick

  1. It would take a Tom Brady-esque 2007 type of season for him to ever earn 14.5 million in one season again.
    Not only is he a liability at the position, but I believe there are questions about his commitment, and justified as well.

    I’ll laugh now when he throws for 350 and 3 tds today

  2. Man, that’s for sure. Nationwide is on your side as long as you pay your premiums. But put in a claim and suddenly you’re dealing with vultures whose use of fine print and legalisms would gag a maggot. If you think I’m overstating this, just ask folks who lived in New Orleans or Mississippi’s gulf coast after Katrina.

  3. A good coach once coached a Kaepernick led team to the super bowl before Kap even had a dozen NFL starts under his belt. To prove that it wasn’t a fluke, he led them back to the championship game the next year. That in itself might scare coaches away from being labeled a bad coach, if he can’t repeat what a good coach was able to do. If Kap ever becomes a free agent, we’ll get to see which coaches out there have confidence in their ability to actually coach. I know Andy Reid has confidence in his ability to coach. Wouldn’t it be funny if Andy picked up Kap and he replaced Alex Smith again.

  4. The fun part is we get to see him prove it on the field. I know he’s the man so he will come through. The last two years of failures are just an aberration

  5. Even Joe Theismann had to give his all (at 36 and his injury passed the eye test for career ending) to rehab to play again to collect insurance for his injury. One leg was shorter than the other and he still wanted to play.

  6. tonebones says:
    Oct 16, 2016 11:15 AM
    A good coach once coached a Kaepernick led team to the super bowl before Kap even had a dozen NFL starts under his belt. To prove that it wasn’t a fluke, he led them back to the championship game the next year. That in itself might scare coaches away from being labeled a bad coach, if he can’t repeat what a good coach was able to do. If Kap ever becomes a free agent, we’ll get to see which coaches out there have confidence in their ability to actually coach. I know Andy Reid has confidence in his ability to coach. Wouldn’t it be funny if Andy picked up Kap and he replaced Alex Smith again.
    ~~~~~~~
    He should not have replaced him the first time. The team was stacked

  7. The only thing I learned from this article is that Florio isn’t a tax attorney and probably had never represented a client that wasn’t some corporation.

  8. One way or another, he’s NOT coming back to Santa Clara next year. He’ll sign with one of the New York teams so that he can be near his “activist” girlfriend. He’ll suck just as bad there too – if he ever even sees the field.

  9. sar·casm

    /ˈsärˌkazəm/

    noun

    noun: sarcasm; plural noun: sarcasms

    the use of irony to mock or convey contempt.
    “his voice, hardened by sarcasm, could not hide his resentment”

    synonyms: derision, mockery, ridicule, scorn, sneering, scoffing;

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