Phil C
01-07-2006, 03:32 PM
As you know (and this is the way I understand it) many players who decided to stay for their senior year in college rather than turn pro in the NFL take out insurance policies for career ending injuries. Lloyd's of London is the main one who carries insurance policies ranging from $5 M for prospective early rounders to $1 M for later rounders. The cost is about $20,000 for each $1 M. The premium is easily arranged to be paid by a loan. The period is for an 18 month period which would include spring practice, regular season, bowl games or playoffs as in Division 2 and post games like East vs West game between players from around the country. If the player gets through without a career ending injury then when he signs a multi million dollar contract then he is easily able to pay off the loan. If he is injured in that manner he gets the pay off from the policy and is able to pay off the loan too. Also bear in mind that the injury payoff is tax free. The thing also is that this is legal within the NCAA rules. Please feel free to offer your thoughts or any corrections on errors I have made.