Disability Insurance for Athletes and Professional Sports Income Protection

Loss of Value (LOV) insurance pays the gap between the contract an athlete projected to sign and the contract actually signed after a qualifying injury. Calculated Loss equals Season Loss multiplied by Season Multiplier, capped at the Maximum Benefit Amount. Compensation under LOVCollege010126 and LOVAppendix010126 includes salary, bonuses, and anything else of value including property, investments, and loans included in an Offer from a Professional Sports Team. A 4-season coverage window is typical. The premium and refund mechanics differ from the PTD products, and the differences materially affect what the athlete pays and what the underwriter refunds.

	College PTD Lloyd’s via Petersen International Underwriters PTDCollegePIU010126Amended7	Professional PTD Lloyd’s via Petersen International Underwriters PTDPIU010126Amended7	College LOV Lloyd’s via Petersen International Underwriters LOVCollege010126	Professional LOV Lloyd’s via Petersen International Underwriters LOVAppendix010126	Critical Injury Lloyd’s via Petersen International Underwriters CI010126
Behavior of paid premiums after cancellation	Fully earned by the underwriter	Fully earned by the underwriter	Fully earned by the underwriter	Fully earned by the underwriter	Fully earned by the underwriter
1 · Payment Timing
When premium is due The schedule on which premium becomes payable	Due at the Certificate Effective Date and the first day of each premium mode. Premium modes cannot be changed while the Insured has a Total Disability.	Same as College PTD. Premium modes cannot be changed during Total Disability.	Due at the Certificate Effective Date and the first day of each premium mode.	Due at the Certificate Effective Date and the first day of each premium mode.	Due at the Certificate Effective Date and the first day of each premium mode.
Grace period How long after a missed premium date the certificate stays in force	31 days for any premium payments made in any mode other than a single premium. If payment is not made by the end of the grace period, the certificate immediately ceases to be in force as of the premium due date.	31 days. Same as College PTD.	31 days.	31 days.	31 days.
2 · Waivers and Credits
Premium waiver after benefits trigger Whether premiums are waived after the qualifying event	Yes. Underwriter will waive premium payments due after the commencement of Permanent Total Disability.	Yes. Same waiver after commencement of Permanent Total Disability.	No premium waiver provision in the LOV form.	No premium waiver provision in the LOV form.	No premium waiver provision in the Critical Injury form.
Exposure-rated premium credit on contract extension How the underwriter adjusts premium when the Insured signs a new contract or extension	Not specified in this form.	Yes. If the Insured signs a new contract or contract extension, an exposure-rated premium credit to Petersen International Underwriters is payable from the date the underwriter is notified.	Not specified in this form.	Not specified in this form.	Yes. Same exposure-rated premium credit obligation on new contract or extension, payable from the date the underwriter is notified.
3 · Refunds and Deductions
Refund of unearned premium on death Whether the underwriter refunds paid premium after the Insured’s death	Yes. The underwriter refunds the portion of paid premium applying to the period after the date of death.	Yes. Same death-refund mechanic.	Yes. Same death-refund mechanic.	Same as the other LOV form (death refund handled under the same Premium Provisions language).	Yes. Same death-refund mechanic.
Unpaid premium deduction at benefit payout Treatment of unpaid premium when benefits become payable	Any unpaid premium at the time benefits are paid is deducted from the benefits paid.	Same as College PTD.	Same as the PTD forms.	Same as the PTD forms.	Same as the PTD forms.
Refund of paid benefits on recovery Whether the Insured must refund benefits after recovering and resuming the stated occupation	Yes. The Insured agrees to immediately refund all benefits paid if the Insured subsequently recovers sufficiently to resume the occupation stated in the Declarations.	Yes. Same refund-on-recovery obligation.	No refund-on-recovery provision in this form. The LOV product compensates a past, completed loss in contract value rather than a continuing-disability state.	No refund-on-recovery provision in this form.	Yes. Same refund-on-recovery obligation as the PTD forms.
4 · Cancellation
How the Owner may cancel Process for cancelling the certificate at the Owner’s election	The Owner may cancel at any time by notifying Petersen International Underwriters in writing. Paid premiums are fully earned by the underwriter.	Same as College PTD.	Same as the PTD forms.	Same as the PTD forms.	Same as the PTD forms.

Source: Specimen policies underwritten by certain Underwriters at Lloyd’s, executed by Petersen International Underwriters, Valencia, CA. Form identifiers PTDCollegePIU010126Amended7, PTDPIU010126Amended7, LOVCollege010126, LOVAppendix010126, and CI010126. Terms shown are from specimen policy language and are subject to underwriter review at the time of application. Premium amounts, ESL tax, stamping fees, processing fees, and payment modes are set in the Declarations at the time of issue.

Quote Athlete Loss of Value Coverage

Critical Injury insurance, form CI010126, pays a Maximum Benefit when an athlete suffers a named injury at or above the policy’s severity threshold. Coverage is structured in two categories with separate benefit caps. A High-Grade Tear means a partial-thickness tear of 50% or greater, a full-thickness tear, or a full-thickness tear with retractions. A Surgical Operation means an invasive medical procedure performed by a Physician. Investigative or diagnostic procedures including arthroscopies do not satisfy the surgical requirement.

Source: Specimen policies underwritten by certain Underwriters at Lloyd’s, executed by Petersen International Underwriters, Valencia, CA. A “partial tear” reported in sports media does not automatically qualify. The policy requires a High-Grade Tear: 50% or greater partial-thickness, or full thickness, confirmed by imaging or surgical findings. A tear below that threshold does not trigger a Critical Injury benefit.

Apply for Critical Injury Coverage

The Critical Injury, College LOV, and Pro LOV products require reconstructive surgery within a defined window after the Accident. The window depends on the injury. A tear of the ACL allows up to 50 days from the Accident to surgery. A spine herniation allows up to 180 days. Most tendon and ligament tears require surgery within 30 days. A surgery completed outside the window does not qualify for benefit. The PTD products do not require surgery within a window because the PTD benefit hinges on Permanent Total Disability rather than the surgery itself.

	Critical Injury Lloyd’s via Petersen International Underwriters CI010126	College LOV Lloyd’s via Petersen International Underwriters LOVCollege010126	Professional LOV Lloyd’s via Petersen International Underwriters LOVAppendix010126
Standard surgery window for soft-tissue tendon and ligament injuries	30 days from the Accident (Tommy John UCL: 30; ACL: 50)	30 days from the Accident (ACL: 50; spine: 180)	30 days from the Accident (ACL: 50; spine: 180)
1 · Knee
Anterior cruciate ligament (ACL) Tear of the ACL of the knee requiring reconstructive surgery	50 days. Category 1. Must be a High-Grade Tear.	50 days. Listed in Appendix 1.	50 days. Listed in Appendix 1.
Posterior cruciate ligament (PCL) Tear of the PCL of the knee requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
Medial collateral ligament (MCL) Tear of the MCL of the knee requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
Lateral collateral ligament (LCL) Tear of the LCL of the knee requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
Patellar tendon Tear of the patellar tendon requiring reconstructive surgery	30 days. Category 1. Must be a High-Grade Tear.	30 days.	30 days.
2 · Shoulder, Chest, and Hip
Rotator cuff or capsule Tear of one or more musculotendinous structures of the rotator cuff or capsule	30 days. Category 1. Must be a High-Grade Tear.	30 days for individual tendon components (supraspinatus, infraspinatus, subscapularis) listed separately.	30 days for individual tendon components listed separately.
Supraspinatus, infraspinatus, subscapularis tendons Individual rotator cuff tendons	Covered under the rotator cuff or capsule definition above.	30 days each, listed individually in Appendix 1.	30 days each, listed individually in Appendix 1.
Pectoral or pectoralis major tendon Tear of the chest-wall tendon requiring reconstructive surgery	30 days. Category 2. Must be a High-Grade Tear.	30 days.	30 days.
Adductor (groin) tendon Tear of the adductor tendon requiring reconstructive surgery	30 days. Category 2. Must be a High-Grade Tear.	30 days.	30 days.
Iliopsoas tendon Tear of the hip-flexor tendon requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
3 · Arm and Elbow
Ulnar collateral ligament (Tommy John) UCL tear requiring Tommy John surgical operation	30 days. Category 1. Must be a High-Grade Tear. Surgical operation must be a “Tommy John” procedure.	30 days.	30 days.
Proximal biceps tendon Tear of the proximal biceps tendon requiring reconstructive surgery	30 days. Category 2. Must be a High-Grade Tear (combined proximal and distal in this form).	30 days.	30 days.
Distal biceps tendon Tear of the distal biceps tendon requiring reconstructive surgery	30 days. Category 2 (combined with proximal biceps in this form).	30 days.	30 days.
Triceps tendon Tear of the triceps tendon requiring reconstructive surgery	30 days. Category 2. Must be a High-Grade Tear.	30 days (distal triceps listed separately).	30 days (distal triceps listed separately).
Common extensor origin Tear of the common extensor origin requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
Elbow tendon Tear of an elbow tendon requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
4 · Leg and Foot
Achilles tendon Tear of the Achilles tendon requiring reconstructive surgery	30 days. Category 1. Must be a High-Grade Tear.	30 days.	30 days.
Hamstring tendon Tear of a hamstring tendon requiring reconstructive surgery	30 days. Category 2. Must be a High-Grade Tear.	30 days.	30 days.
Quadriceps Quadriceps injury requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
Rectus femoris tendon Tear of the rectus femoris tendon requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
Sartorius tendon Tear of the sartorius tendon requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
Open fracture of arm or leg Open fracture of the arm (wrist to shoulder) or leg (hip to ankle) requiring reconstructive surgery	Not listed as a Critical Injury named loss.	30 days.	30 days.
5 · Spine
Cervical spine herniation Herniation resulting in discectomy, laminotomy, or fusion	Not listed as a Critical Injury named loss.	180 days.	180 days.
Thoracic spine herniation Herniation resulting in discectomy, laminotomy, or fusion	Not listed as a Critical Injury named loss.	180 days.	180 days.
Lumbar spine herniation Herniation resulting in microdiscectomy or fusion	Not listed as a Critical Injury named loss.	180 days.	180 days.
6 · Conditions Not Requiring a Surgery Window
Cancer (excluding skin cancer of any type or form) Malignant tumor requiring medical treatment by a Physician while the certificate is in force	Category 1. Detailed histological carve-outs apply for pre-malignant, in situ, borderline, urothelial, skin, thyroid, neuroendocrine, and GIST tumors.	Listed in Appendix 1. Requires medical treatment by a Physician while the certificate is in force.	Listed in Appendix 1. Same medical-treatment requirement.
Heart attack Sudden loss of heart function with interruption of blood circulation	Category 1. Requires resuscitation and surgical implant of an ICD, CRT-D, or pacemaker. Heart attack secondary to illegal drug use is not covered.	Listed in Appendix 1. Requires medical treatment by a Physician while the certificate is in force.	Listed in Appendix 1. Same medical-treatment requirement.
Loss of sight in one eye Permanent and irreversible loss of sight in the eye	Category 1. Vision measured at 6/60 or worse using a Snellen eye chart, or visual field reduced to 20 degrees or less of arc, certified by an ophthalmologist, with use of visual aids.	Not listed as a covered loss.	Not listed as a covered loss.

A High-Grade Tear under the Critical Injury form is a partial-thickness tear of 50% or more, a full-thickness tear, or a full-thickness tear with retractions (including avulsion of the tendon insertion at the bone). A Surgical Operation is an invasive medical procedure performed by a Physician to treat a medical condition; investigative or diagnostic procedures including arthroscopies do not satisfy this definition. Day counts are measured from the date of the Accident causing the injury. Source: Specimen policies underwritten by certain Underwriters at Lloyd’s, executed by Petersen International Underwriters, Valencia, CA. Form identifiers CI010126, LOVCollege010126, and LOVAppendix010126. Terms shown are from specimen policy language and are subject to underwriter review at the time of application.

Review Surgery Window Requirements

All five sports policies exclude war, suicide, criminal acts resulting in conviction, and the athlete’s death. Beyond that universal set, exclusions differ by product. The PTD products exclude Mental, Neurocognitive and Nervous Disorders plus concussions and Post Concussion Syndrome if the athlete had a prior concussion with loss of consciousness or 3 or more prior concussions. The LOV products use the narrower psychotic, psychoneurotic or epileptic origin wording instead. Critical Injury is the only form with an explicit alcohol exclusion. All five exclude illegal drug use and sport-governing-body prohibited substances.

	College PTD Lloyd’s via Petersen International Underwriters PTDCollegePIU010126Amended7	Professional PTD Lloyd’s via Petersen International Underwriters PTDPIU010126Amended7	College LOV Lloyd’s via Petersen International Underwriters LOVCollege010126	Professional LOV Lloyd’s via Petersen International Underwriters LOVAppendix010126	Critical Injury Lloyd’s via Petersen International Underwriters CI010126
Total non-universal exclusions in this form	3 added (mental, concussion, sport-substance use)	3 added (mental, concussion, sport-substance use)	3 added (psychotic/psychoneurotic/epileptic, prior PTD, failure to declare)	2 added (psychotic/psychoneurotic/epileptic, prior PTD)	2 added (alcohol abuse, sport-substance use)
1 · Medical and Neurological Exclusions
Mental, Neurocognitive and Nervous Disorders Defined to include psychiatric, manic, paranoid, schizophrenic, insomnia, brain fog, memory loss, fatigue, personality, depressive, and anxiety disorders. Excludes Alzheimer’s, Parkinson’s, MS, and other progressive neurological diseases.	Excluded.	Excluded.	Not listed as an exclusion in this form. LOV uses the narrower “psychotic, psychoneurotic or epileptic origin” wording instead.	Not listed as an exclusion in this form. Same narrower wording as College LOV.	Not listed as an exclusion in this form.
Concussion and Post Concussion Syndrome If prior to the Effective Date the Insured had (a) a concussion with loss of consciousness, or (b) three or more concussions. Exclusion extends to any condition caused by, related to, or developing subsequent to traumatic brain injury, including Second Impact Syndrome.	Excluded.	Excluded.	Not listed as an exclusion in this form.	Not listed as an exclusion in this form.	Not listed as an exclusion in this form.
Conditions of psychotic, psychoneurotic, or epileptic origin Narrower category than the PTD mental-health exclusion. No reference to fatigue, brain fog, or personality conditions.	Not used in this form. PTD uses the broader Mental, Neurocognitive and Nervous Disorders category.	Not used in this form. PTD uses the broader Mental, Neurocognitive and Nervous Disorders category.	Excluded.	Excluded.	Not listed as an exclusion in this form.
2 · Substance Exclusions
Illegal drugs and narcotics Being under the influence of drugs or narcotics not lawfully available, unless prescribed by a qualified Physician.	Excluded.	Excluded.	Excluded.	Excluded.	Excluded.
Performance-enhancing substances Anabolic steroids, stimulants, and corticosteroids, unless prescribed by a qualified Physician.	Excluded.	Excluded.	Excluded.	Excluded.	Excluded.
Sport-governing-body prohibited substances Any drugs or substances used in violation of the rules or regulations of the governing body of the sport in which the Insured Participates.	Excluded.	Excluded.	Excluded.	Excluded.	Excluded.
Alcohol abuse or alcohol influence Alcohol abuse, addiction, or being under the influence of alcohol as defined by the vehicle code of the state or province in which the offense occurred.	Not listed as an exclusion in this form.	Not listed as an exclusion in this form.	Not listed as an exclusion in this form.	Not listed as an exclusion in this form.	Excluded. This is the only one of the five forms with an alcohol exclusion.
3 · Career and Coverage-Coordination Exclusions
Failure to declare for the draft The Insured’s failure to declare for the draft in the Occupation of Insured prior to the Expiry Date voids coverage.	Not applicable.	Not applicable.	Excluded. Coverage is voided if the Insured does not declare for the draft.	Not listed as an exclusion in this form. Professional LOV covers post-draft contract value, not pre-draft entry.	Not listed as an exclusion in this form.
Permanent Total Disability as an LOV exclusion The Insured suffering a Permanent Total Disability voids the LOV claim and routes the loss into the PTD product line.	Not applicable.	Not applicable.	Excluded.	Excluded.	Not listed as an exclusion in this form.

Universal exclusions apply to all five forms and are not duplicated above: war or any act of war; suicide, self-destruction, or intentionally self-inflicted injury; the Insured’s own criminal or felonious act resulting in conviction; and the Insured’s death (no covered claim arises in the event of death). Source: Specimen policies underwritten by certain Underwriters at Lloyd’s, executed by Petersen International Underwriters, Valencia, CA. Form identifiers PTDCollegePIU010126Amended7, PTDPIU010126Amended7, LOVCollege010126, LOVAppendix010126, and CI010126. Terms shown are from specimen policy language and are subject to underwriter review at the time of application.

Get an Underwriting Review

The Professional LOV form, LOVAppendix010126, requires a signed release before any benefit is paid. The release confirms that the final settlement has been reached. It also provides that any future Permanent Total Disability claim arising from the same Accident or Sickness would be reduced by the LOV settlement amount. The contract reads: no claim payment made under this Insurance until You have started to play or practice with a Professional Sports Team and signed a satisfactory release confirming that final settlement has been reached. Athletes who expect to file both LOV and PTD claims on the same injury must understand that the second payout is reduced by the first.

Compare LOV and PTD Coverage Together

Draft protection works through two products underwritten at Lloyd’s and executed by Petersen International Underwriters. College PTD, form PTDCollegePIU010126Amended7, pays a lump sum if an injury or illness during the draft-eligible season permanently ends the ability to compete professionally. College LOV, form LOVCollege010126, pays a Calculated Loss if a covered injury during the season causes the athlete to be drafted materially lower than projected. Both products must be in force before the draft-eligible season begins. LOV requires the athlete to declare for the draft because failure to declare voids coverage. Coverage must be purchased before any injury occurs.

Get a College Draft Protection Quote

Premium varies by athlete age, sport, position, contract value, projected contract value, prior injury history, and the specific products selected. The Critical Injury and Pro PTD products include an exposure-rated premium credit obligation when the athlete signs a new contract or contract extension. Premium is due at the Effective Date and the first day of each premium mode. A 31-day grace period applies to every form. Any unpaid premium at the time benefits are paid is deducted from the benefits paid.

Request a Cost Estimate

NIL income from endorsement contracts, sponsorship agreements, and licensing deals can be included in the Compensation calculation for LOV policies. Compensation under LOVCollege010126 and LOVAppendix010126 includes salary, bonuses, and anything else of value including property, investments, and loans, whether or not in cash, regardless of when paid. Coverage is calibrated at the time of application based on documented NIL agreements. Athletes whose NIL income exceeds their projected professional contract value need a separate disability insurance structure layered above the college LOV product.

Quote NIL Income Protection

The NFL, NBA, MLB, NHL, MLS, and PGA Tour each provide limited group disability benefits through their collective bargaining agreements or tour-administered programs. Group programs typically lack the 1-year statute of limitations and four-step grievance procedure that the individual sports policies provide. The individual policies (PTD, LOV, Critical Injury) supplement rather than replace league benefits. Athletes should layer individual coverage on top of the league benefit to fill the gap between group-program caps and actual income exposure. Set for Life Insurance reviews both layers before recommending a structure.

Layer Individual Coverage Above League Group