Athletics Risk Management and Compliance Services: Current Longhorns — Disability Insurance
What is Disability Insurance?
If you are considering a career as a professional athlete, disability insurance would allow you to recover some of the losses you might suffer if you had a career ending injury before you went pro. No one likes to think about these types of injuries, but disability insurance can help you protect yourself in the event that something unfortunate happens. The amount of coverage you can get is based on the amount that insurance companies project that you would make as a professional. Normally this is based on your projected salary, but in some circumstances they might also be able to consider potential endorsement income. So disability insurance may be an option even for those hoping to go professional in an individual sport where your income is likely to come from endorsements rather than salary.
How much does it cost?
Like all insurance, in order to get disability insurance you must pay an insurance premium, which will vary based on your amount of coverage and the length of your policy. However, the NCAA has a specific rule that will allow you to get a loan, based on your potential as a professional athlete, to pay the premium. This allows you to use a loan to pay the insurance now and then you can re-pay the loan after you have completed school. Be aware, however, that you would need to re-pay this loan even if you wound up not going pro, or wound up making less money than projected. So, for example, if you get insurance and a loan to pay a premium based on your plan to pursue professional sports after school and then decide to go to graduate school instead and not pursue a professional career, you would still be obligated to repay the loan.
How can I get it?
If you are interested in disability insurance, come by the Compliance Office. The NCAA has its own disability insurance program that we can help you apply for or we can contact private insurers who are familiar with this type of coverage. We would be happy to explain the rules and restrictions that apply to disability insurance. Even if you decide to obtain this coverage on your own, NCAA rules require that our office be provided copies of any loan documents related to your disability insurance-so come talk to us!
Links and Resources
