Professional Athlete
High Limit Disability Benefits
The purpose of this kind of policy is as a personal disability contract guarantee, that can also guarantee team indemnification and/or loss of endorsement, and college draft protection.
Disclaimer
This information will serve as a guide to the main points, and is not a plan, policy itself nor a contract or part of one. The information on this page is based on a general concept of professional athlete high limit disability benefits, and is not meant to constitute advice, or represent any provisions of any policy. The details on this page come from standard self-type plans.
All complete and specific terms are set forth in your policy. The information you read on this site should not be used or relied upon as a substitute for the relevant insurance policy wording or relevant policy documents.
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Overview
The principal sum is payable after the specified elimination period. The principle sum benefit may be taken in a single lump-sum benefit or designed to pay lifetime benefits as an annuity of the lump sum.
Coverage is subject to satisfactory completion of the application process including exam long form, or short form and review of the justification or contract, depending on the benefits desired.
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Principle Sum
Eligibility for the principal sum is conditional upon the insured having been totally disabled for the entire elimination period and is then determined by competent medical authority to be permanently totally disabled. Total disability must result from a bodily injury caused by an accident occurring while any proposed certificate is in force and results in disablement within six months of the date of the accident, or sickness or disease that manifests itself while any proposed certificate is in force and results in disablement within six months of the date of such manifestation.
Please note that the maximum amount of coverage will be determined by our underwriters.
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Special Features
This is not an integrated policy. This benefit is payable, in addition to and not reduced by, any other disability benefits provided by this or any other plan.
The principle sum benefit may be taken in a single lump-sum benefit or designed to pay long-term benefits as an annuity of the lump sum.
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Conditions
An injury is a bodily injury only if it is the direct consequence of an accident and is not the accumulation of a series of accidents or traumas, and if it is not directly or indirectly caused by, contributed to by and/or aggravated by any physical impairment, defect, degenerative process or infirmity existing prior to the inception of this policy. A physical impairment, defect, degenerative process or infirmity exists prior to the inception of this policy or in the event that it has not been so diagnosed then, in the opinion of a health care practitioner the insured could reasonably have been expected to be aware of its existence on the date of inception of this policy.
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Not Covered
War or any act of war, whether declared or not; suicide, self-destruction, attempted suicide or self-destruction, or intentionally self-inflicted injury, while sane or insane; the insured’s own criminal or felonious act; being under the influence of alcohol, as defined by the motor vehicle laws of the state in which this policy was delivered or issued for delivery, being under the influence of drugs or narcotics that are not lawfully available, unless prescribed for the insured by a qualified health care practitioner, using drugs or substances in violation of the rules or regulation of the sanctioning body of the league in which the insured plays; the insured’s use of performance enhancing substances, including but not limited to anabolic steroids, stimulants or corticosteroids, regardless of whether or not prescribed by a qualified health care practitioner; any practices or activities excluded by the insured’s professional sports contract in connection with his or her occupation; conditions of psychotic, psychoneurotic or epileptic origin.
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Specified Occupations
These plans are specified occupation plans. They will terminate automatically if the insured changes from the occupation in which he or she was engaged in at the time the plan was issued, unless an agreement has been obtained in writing from the underwriters and any additional premium required by the underwriters has been paid. The sole liability of the underwriters in the event of an occupation change shall be to return any unearned premiums paid for the balance of the plan term.
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Terms of Coverage
These plans are annually renewable, or for negotiated longer periods of time. It is contemplated that the plans will be renewed, however, the underwriters reserve the right to refuse to renew or to change the premium rates on renewal. A renewal application or a statement of good health may be required by the underwriters for consideration of renewal.
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General Information
These plans are used in a number of ways to insure the professional athlete personally or to insure the team of which the athlete is a member as to the financial losses that result from a disabling accidental bodily injury or sickness. Career length varies by the sport in which the athlete performs. Exceptionally high earnings are generated in a short time span making the adequate insuring of the earning potential a primary financial planning process. Here are some of the uses of these plans:
- Loss of Future Earnings A professional athlete can anticipate income levels and probable playing time. A disability can affect the level of income to be earned in the future and a disability can shorten the career period. As an example, an athlete has no income assurance beyond the term period of the present contract. This plan can insure an income should disability shorten the expected career period.
- Contract Completion The loss of an athlete by disability puts the team in double jeopardy. Revenue may slip and the team must continue to pay the non-performing athlete. These plans can insure the contracted compensation to the athlete, thus relieving the team of that financial burden.
- Loss of Endorsements Endorsement income and fees continue to flow as long as the public remains fans of the athlete. A political statement, a drug involvement, a drunk arrest, a public relations goof, and the advertiser/endorsers pull back from sponsorship. This loss is also insurable.
- Cost of Agents/Managers During periods of disability it is in the athlete’s best interest to continue the use of agents and managers to keep the athlete’s value as an athlete and as a product spokesperson keenly in the minds of those who contract for their services. These costs can be insured.
- College Draft Protection Talented athletes may decide to stay in school rather than take early entry into the draft. There is a risk of sustaining a career-ending disability during the final college years. These plans are available to insure the future value of a professional career.
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