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Student-Athlete Insurance Programs

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Catastrophic Insurance Program
The NCAA sponsors a Catastrophic Injury Insurance Program which covers the student-athlete who is catastrophically injured while participating in a covered intercollegiate athletic activity. The policy has a $90,000 deductible and provides benefits in excess of any other valid and collectible insurance.

2013-14 Catastrophic Insurance Program Benefits Summary

Catastrophic Insurance - Frequently Asked Questions

Exceptional Student-Athlete Disability Insurance Program

The NCAA also sponsors a disability insurance program for exceptional student-athletes at NCAA institutions in the sports of football, men's and women's basketball, baseball and men's ice hockey.

The program enables qualifying student-athletes, as approved by the program administrator, to purchase disability insurance contracts with preapproved financing, if necessary. This program will provide the student-athlete with the opportunity to protect against future loss of earnings as a professional athlete, due to a disabling injury or sickness that may occur during the collegiate career.

INTRODUCTION:

In October 1990, a disability insurance program was initiated for exceptional student-athletes at National Collegiate Athletic Association (NCAA) institutions in the sports of football and men's basketball. In April 1991, the program was expanded to include exceptional student-athletes in the sport of baseball. In June 1993, exceptional student-athletes in men's ice hockey became eligible for the program. Coverage became available for exceptional student-athletes in the sport of women's basketball in August 1998.

The program enables qualifying student-athletes, as approved by the program administrator, to purchase a disability insurance contract with pre-approved financing, if necessary. This program will provide the student-athlete with the opportunity to protect against future loss of earnings as a professional athlete due to a disabling injury or sickness that may occur during the collegiate career.

ELIGIBLE STUDENT-ATHLETES:
Student-athletes with remaining athletics eligibility at NCAA institutions in the sports of intercollegiate football, men's or women's basketball, baseball, or men's ice hockey, who have demonstrated they have professional potential to be selected in the first three rounds of the upcoming National Football League or National Hockey League draft or the first round of the upcoming draft of the National Basketball Association, Major League Baseball, or Women's National Basketball Association, are eligible for this program.

Entire article: http://www.ncaa.org/about/resources/insurance/student-athlete-insurance-programs
 
Source: Marqise Lee insured for $10M

USC wide receiver Marqise Lee has secured a $10 million total disability insurance policy, a source told ESPN.com.

The policy would allow Lee to collect a tax-free $10 million should he suffer a career-ending injury this season and not be able to return to the game.

The source also told ESPN.com that Lee could collect should he slip significantly in the NFL draft. Lee, who finished last season with 1,721 receiving yards and 14 touchdowns, is ranked as the No. 1 wide receiver in the draft on Mel Kiper Jr.'s Big Board.

In order to get the policy, Lee went outside the program provided by the NCAA, which caps the maximum insurance policy at $5 million and doesn't allow players who are part of the program to pay additionally for loss-of-draft-value insurance. The premiums for the policies secured through the NCAA program are financed through U.S. Bank and provide that the player pay back the loan upon signing his first professional contract.

The premiums on disability insurance policies typically cost $8,000 to $10,000 per $1 million insured.

Entire article: http://espn.go.com/los-angeles/coll...se-lee-picks-10m-insurance-policy-source-says
 
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College loss of value insurance policies

The potential income of college players and the risk of injury are both so high that some have elected to take out insurance. Ex-USC linebacker Morgan Breslin may be the first to collect on such a policy.

Marqise-Lee.jpg


USC wideout Marqise Lee slid to the second round, possibly due to injury concerns.

Breslin was third in the nation in sacks in 2012. He purchased an insurance policy in 2013 and then had sports hernia and hip issues. He subsequently fell from a potential first round selection to an undrafted free agent. It is postulated that he will have a solid claim to collect up to $1 million.

His former college teammate, wide receiver Marqise Lee, had a policy as well and might also be able to collect. Lee’s draft stock may have tumbled due to a knee injury.

As potential NFL incomes soar and injury risks remain high, it is likely we may see more of these insurance policies. Freshman and sophomores need financial protection since they can’t turn pro until after their third year in school.

Entire article: http://www.nationalfootballpost.com/Monday-Morning-MD-2052.html
 
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