For athletes contracted under the National Basketball Association (NBA), Major League Baseball (MLB) and the National Hockey League (NHL), the majority of the contracts signed by players are guaranteed. So if a player is cut from the team or injured, they will still be paid the remainder of the value of their contract. Then there is the National Football League (NFL), where it is estimated that not even 50 percent of their contracts are guaranteed. This could be due to a higher number of player turnover or increased injury rates when comparing the NFL to the other leagues and associations. In turn, all the responsibility, risk and worry is placed on the player with the risk of injury being so high and compensation from contracts not being guaranteed.
It is actually estimated that as little as 40 percent of players in the NFL acquire disability insurance coverage. This fact in combination with the information stated above, can leave players extremely vulnerable to financial ruin. Now, disability benefits which are league administered are available to NFL players, of total and permanent or line of duty disability under the Bert Bell/Pete Rozelle NFL Player Retirement Plan. For years though, this coverage has been under review and deemed insufficient by the NFL Players Association and the NFL.
If you would like to have more security and protection than offered through league administered coverage, there is more specialized disability coverage available for leagues, teams and organizations alike to assist in the guarantee of income in a situation involving disability of a player. Keep in mind that specialized disability insurance claims involving high profile athletes are dissected and challenged because if the claim is won, the disability insurance carrier would take a hefty financial hit. Help and information is available through our services. Get in touch with us today!