As a student-athlete with aspirations of being drafted into the professional leagues, you’re likely focused on the opportunities and financial rewards that lie ahead. But what if an injury derails those dreams? Unfortunately, injuries are a reality in sports, and they can quickly alter your future. This is why many athletes consider purchasing a disability insurance policy, especially if they expect to go pro.
Disability insurance is designed to provide financial protection if an injury prevents you from playing professionally. But is it the right move for you? Let’s explore why disability insurance might be one of the smartest investments you can make before the draft.
What Is a Disability Policy?
A disability insurance policy provides financial protection in case you suffer a career-ending injury before signing a professional contract. This type of policy typically covers you if an injury prevents you from reaching your anticipated earning potential in professional sports.
For student-athletes who are projected to be high draft picks, the stakes are even higher. Your future income could be in the millions, and a serious injury could mean losing out on that potential. A disability policy steps in to compensate for that loss.
Why You Should Consider a Disability Policy
1. Protecting Your Future Earnings
The most obvious reason to get a disability policy is to safeguard your future income. If you’re expected to be drafted, especially in the early rounds, the financial rewards could be life-changing. However, the risk of injury is always present. A disability policy ensures that, in the event of a career-ending injury, you won’t be left without financial security.
2. Peace of Mind During Your Final Season
For many athletes, the final college season or combine preparations are filled with high pressure. The fear of injury is real, especially when a professional career is within reach. Having a disability policy can ease some of that stress. Knowing that you’re protected financially allows you to focus on performing at your best without worrying about what might happen if you get hurt.
3. Coverage for Career-Ending Injuries
While no one wants to think about the worst-case scenario, it’s important to be prepared. Serious injuries like torn ligaments, fractures, or concussions can end a career before it begins. A disability policy pays out if you suffer an injury that prevents you from reaching your professional goals. This payout can help support your lifestyle, medical expenses, or even fund your transition into another career.
4. A Small Price for Big Protection
Disability policies can be relatively affordable compared to the potential payout they offer. The cost of a policy depends on several factors, including your projected draft position, sport, and injury risk. However, the premium is often a fraction of the potential loss in future earnings if you get injured. For athletes on the verge of going pro, this small investment can provide massive protection.
5. It Complements Other Insurance Policies
Many athletes already have health insurance, which covers medical bills and rehab costs. However, health insurance won’t compensate you for the loss of future income if an injury prevents you from signing a professional contract. A disability policy fills this gap, ensuring that you’re not left financially vulnerable even if health insurance takes care of your immediate medical needs.
When Should You Get a Disability Policy?
Timing is key when purchasing a disability policy. Ideally, you should secure coverage before entering your final season or participating in events like the NFL Combine or NBA Draft Combine. This way, you’re protected during the critical time when your draft stock is highest and the risk of injury is at its peak.
Additionally, some policies allow you to increase coverage if your draft position improves. For example, if you’re projected as a mid-round pick and your performance raises your stock to a first-round selection, you can adjust your policy to reflect the higher potential earnings.
Types of Disability Policies
There are a few different types of disability policies available to student-athletes:
- Permanent Total Disability (PTD) Policies: This type of policy pays out if an injury permanently prevents you from playing your sport professionally.
- Loss of Value (LOV) Policies: LOV policies provide coverage if you suffer an injury that causes your draft stock to fall, resulting in a lower contract than anticipated. This is particularly useful if an injury leads to a significant drop in draft position, costing you millions in signing bonuses or guaranteed money.
Both types of policies can be valuable depending on your projected draft position and the specific risks associated with your sport.
Final Thoughts: A Smart Investment in Your Future
In the competitive world of sports, nothing is guaranteed. A career-threatening injury can happen at any moment, especially when the stakes are highest. If you’re an athlete with a strong chance of being drafted, a disability policy is a smart investment that offers financial security and peace of mind.
By taking steps to protect your future earnings now, you’re ensuring that your hard work and talent aren’t jeopardized by an unfortunate injury. It’s a proactive measure that allows you to focus on your performance, knowing that no matter what happens, you’re covered.
Written by Pat Brown, MBA, Former D1 Player