Career Ending Injuries for Athletes
Jul 15, 2013
Jamie Fleischner

Jamie Fleischner

15 Jul, 2013

Over the weekend I watched a segment on TV about a basketball player who had a career ending injury riding a motorcycle before he played in his first NBA game. From my perspective, the first thing that came to mind–I hope he was properly insured.

Professional athletes can protect themselves financially from career ending injuries. Policies generally pay a large lump sum if the athlete has an injury and can no longer perform.

Here is some more detailed information. For a complete description, please contact Set for Life:

Eligibility for the Principal Sum Benefit 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 this Certificate is in force and results in
disablement within twelve months of the date of the accident, or sickness or disease that manifests itself while this Certificate
is in force and results in disablement within twelve months of the date of such manifestation.
This Policy does not cover losses directly or indirectly caused or contributed to by:
War; Any attempt at suicide or intentional self‐injury; The Insured person’s own criminal or felonious act; The death of the
Insured Person; Conditions of Psychotic, Psycho neurotic or Epileptic origin; The Insured Person being under the influence of
alcohol, as defined by the vehicle code of the state or province in which the accident has occurred; The Insured Person being
under the influence of drugs or narcotics that are not lawfully available, unless prescribed for the Insured Person by a
qualified health care practitioner; The Insured Person using any drugs or substances in violation of the rules or regulations of
the governing body of the sport in which the Insured Person plays; The operation, learning to operate or serving as a member
of a crew of an aircraft.
This is a brief description of the insurance provided by this plan.
The Certificate of Insurance is the complete description of coverage.

These plans are Specified Occupation Plans. They will terminate automatically if the Insured changes from the
occupation in which he/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.
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.
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 fi nancial 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 fi nancial 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 fi nancial burden.
• Loss of Endorsements
Endorsement income and fees continue to fl ow as long as the public remains fans of the athlete. A political statement, a
drug involvement, a drunk arrest, a public relations go of, 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 athletes 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.
This is a brief description of the insurance provided by this plan.
The Certifi cate of Insurance is the complete description of coverage.

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