PERSONAL LINES
HOW INSURANCE CAN PROTECT A STUDENT-ATHLETE’S FINANCIAL FUTURE In 2008, Dante Love, a wide receiver who played for the Ball State Cardinals, suffered a cervical spine fracture that ended his football career. At the time of his career-ending injury, Love was projected to be a high first-round pick in the NFL Draft. Although he was able to recover, he never played football again. There are other stories of injuries damaging student-athletes’ professional careers. For this reason, it is recommended that exceptional student-athletes apply for the Exceptional StudentAthlete Disability Insurance (ESDI) program to protect themselves. The insurance program, offered by the National Collegiate Athletic Association (NCAA), helps elite college athletes if an injury ends their playing career. Initially started in 1990, covering football and men’s basketball only, it was expanded in 1998 to include all sports. For a student-athlete to be eligible for this insurance coverage, they must have remaining athletic eligibility at an NCAA institution and also demonstrate that they can be pro athletes in the major sports leagues’ first two rookie drafts. Unfortunately, the policy doesn’t explicitly list the criteria for the selection of student-athletes with professional potential. Instead, the NCAA only uses professional scouting services to assist the organization’s evaluations, which isn’t an exact science. On the other hand, athletes aren’t required to apply for the insurance program before the season 16 | MARCH 2022 |
wisconsin INDEPENDENT AGENT
begins: The requirement is that they must be able to play their way into it. Essentially, if a studentathlete is ineligible before starting a collegiate season but plays well enough during the entire year, they can obtain insurance coverage midseason. It is worth noting that the NCAA doesn’t pay for the policy acquired through the ESDI program. Instead, the eligible athletes or their families are the ones who cover the costs of coverage. The premiums for the policy can be as much as $10,000 to $12,000 per $1 million insured. The insurance program carries a 24-month maximum policy term for any eligible student-athlete and pays out in a single lump sum after the expiration of the elimination period. To help cover premium costs, the approved student-athlete is automatically eligible for a loan. If the eligible student-athlete acquires a loan to settle the premium, they aren’t responsible for making loan repayments until one of the following scenarios occurs: • The student-athlete signs a professional contract. • The disability benefits become available because of a covered sickness or injury. • The coverage expires and the loan note matures. The Elimination Period During the elimination period, which is 12 consecutive months from the date in which the total disability has been indicated, no benefits are payable to the student-athlete.
