NCAA makes $5 million in insurance available


Earlier today, Alex Marvez of FOX reported that South Carolina defensive end Jadeveon Clowney is seeking $5 million in insurance via a private broker.  But as one source with knowledge of the process explains it to PFT, the NCAA already has a program in place that makes $5 million in insurance available to players who may need it.

Per the source, the premium is roughly $40,000 for a year, and the NCAA will finance the amount at a low interest rate.  Lower amounts of insurance are available at smaller premiums, based on a player’s projected pro prospects.

The policy that the NCAA makes available pays out only for a career-ending injury.  Which, in the case of Clowney, makes $5 million a drop in the bucket in comparison to what he could earn over a full pro career.

Other insurance could be purchased privately, but without NCAA assistance.  Lloyd’s of London makes a “loss of status” policy available based on an injury that causes the player to be drafted lower than expected.  Those policies are more expensive and often result in litigation, since there often are multiple potential causes for a drop in draft stock.

So if the NCAA makes available insurance that covers only career-ending injuries, why should the players have to pay for it?  At a time when NCAA-member institutions are generating millions from the labor and physical risks of players who get in return a “free education” that, frankly, costs the schools a lot less to give than it would cost the students to purchase, the players who are projected to have professional careers should get this protection automatically, and the NCAA should allow the schools to provide it.

Of course, it could be difficult to determine who will and won’t qualify for coverage, and for how much.  Of all the bureaucracies that the NCAA has spawned, however, this would be one of the more worthwhile.  And in a case like Clowney’s, however, it’s clear that the answer would be “all of it.”

11 responses to “NCAA makes $5 million in insurance available

  1. Thanks a lot. Small consolation to players like DaQuan Bowers and Danario Alexander who lost that amount of money off the first year of the contracts they could have expected if they came out healthy. Or more.

  2. “why should the players have to pay for it?”

    Are you kidding? So the NCAA should pay for insurance for only projected top picks? If they are going to pay, than every single NCAA athlete should be insured for 5 million dollars. What a stupid question.

  3. Well maybe this is an opportunity for the future to address the issue of whether or not college players should get paid money. Being in the insurance business myself I have found that Life Insurance policies are a great way to create flexible things of value for a convenient fit in a complex situation. Maybe instead of determining how much cash players are able to make, they could offer a cash-value Life policy and standardize it across the nation.

    The players can be protected a variety of ways while also having the flexibility to draw cash from policy loans if they are so inclined. There could be a lot of advantages to using this type of benefit, or even health insurance or disability insurance are options too, as opposed to having to pay the players cold hard upfront cash when it comes to the day that these players can secure compensation rights.

  4. So let me get this straight…rules the NFL has made, and agreed to with the NFL players association in collective bargaining, are keeping players from making money in the NFL, putting future NFL earnings at risk….therefore the NCAA should give them free insurance??

  5. The NCAA makes enough money off these athletes and every player should be entitled to this benefit at the expense of school. How many players end up with career ending injuries?

  6. His situation has gotten way out of hand. I thought just being able to go to college for free was a pretty good deal.

  7. Its amazing that people trust insurance. i have heard enough stories of life insurance companies ripping you off to know you dont get what you should in most cases

  8. To hard to do it fairly, many players drafted in the 1st round never live up to expectations, conversely some players drafted later have great careers.
    If think they have a shot at the NFL they can always buy the insurance.

  9. Now days so many atheletes are getting cupcake liberal arts degrees that only qualify them to work in fast food, or at best as a bartender.

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