Player Insurance Policies

[CaliHoya]

I know Calipari said that 3-4 NBA-type players on his team this year have a $10 million insurance policy that covers them in the case of career-ending injury. I heard that costs something like $30-40K for the year, with fairly favorable payment terms (it can be paid for over several years).

In my mind, Otto should only come back (keeping the merits of that decision for another thread) if he has such an insurance policy. Does anyone have any info on NCAA regulations on this and how affordable they are for players/families? Otherwise, the financial gamble for coming back seems very, very risky.

[HometownHoya]

Feb 26, 2013 17:40:14 GMT -5 CaliHoya said:

I know Calipari said that 3-4 NBA-type players on his team this year have a $10 million insurance policy that covers them in the case of career-ending injury. I heard that costs something like $30-40K for the year, with fairly favorable payment terms (it can be paid for over several years).

In my mind, Otto should only come back (keeping the merits of that decision for another thread) if he has such an insurance policy. Does anyone have any info on NCAA regulations on this and how affordable they are for players/families? Otherwise, the financial gamble for coming back seems very, very risky.

I'm sure there is some sort of policy for the entire Mens Basketball team. I doubt on the court injuries are dealt with through student insurance.

Otto isn't coming back, enjoy what we have.

[rosslynhoya]

Feb 26, 2013 17:59:01 GMT -5 HometownHoya said:

Feb 26, 2013 17:40:14 GMT -5 CaliHoya said:

I know Calipari said that 3-4 NBA-type players on his team this year have a $10 million insurance policy that covers them in the case of career-ending injury. I heard that costs something like $30-40K for the year, with fairly favorable payment terms (it can be paid for over several years).

In my mind, Otto should only come back (keeping the merits of that decision for another thread) if he has such an insurance policy. Does anyone have any info on NCAA regulations on this and how affordable they are for players/families? Otherwise, the financial gamble for coming back seems very, very risky.

I'm sure there is some sort of policy for the entire Mens Basketball team. I doubt on the court injuries are dealt with through student insurance.

Otto isn't coming back, enjoy what we have.

It's not medical insurance. The NBA-bound player executes a contract with a financial firm for a relatively small amount upfront (depending on his injury-proneness and other actuarial variables) and if he's injured during the year in which he returns to school, he'll collect an amount specified in the insurance policy to offset the lost earnings that result from no longer being a first round or lottery pick.

I think we talk about this scenario every March/April.

[SSHoya]

See at p 4 - 5. Exceptional Student-Athlete Disability Insurance Program (ESDI)

www.bc.edu/content/dam/files/schools/csom_sites/faculty/pdf/NBA%20Transition.pdf

[Problem of Dog]

The NCAA has a program established for "exceptional" student athletes to obtain insurance like this.

Otto isn't coming back.

[Buckets]

Feb 26, 2013 20:18:05 GMT -5 SSHoya said:

See at p 4 - 5. Exceptional Student-Athlete Disability Insurance Program (ESDI)

www.bc.edu/content/dam/files/schools/csom_sites/faculty/pdf/NBA%20Transition.pdf

Very interesting article (and the author's Twitter feed @warrenkzola). Thanks.

[hoyaboy1]

Feb 26, 2013 19:22:20 GMT -5 rosslynhoya said:

Feb 26, 2013 17:59:01 GMT -5 HometownHoya said:

I'm sure there is some sort of policy for the entire Mens Basketball team. I doubt on the court injuries are dealt with through student insurance.

Otto isn't coming back, enjoy what we have.

It's not medical insurance. The NBA-bound player executes a contract with a financial firm for a relatively small amount upfront (depending on his injury-proneness and other actuarial variables) and if he's injured during the year in which he returns to school, he'll collect an amount specified in the insurance policy to offset the lost earnings that result from no longer being a first round or lottery pick.

I think we talk about this scenario every March/April.

My understanding was that these only apply to career-ending injuries rather than something temporary that costs you draft position.

[rosslynhoya]

Feb 26, 2013 20:45:52 GMT -5 hoyaboy1 said:

Feb 26, 2013 19:22:20 GMT -5 rosslynhoya said:

It's not medical insurance. The NBA-bound player executes a contract with a financial firm for a relatively small amount upfront (depending on his injury-proneness and other actuarial variables) and if he's injured during the year in which he returns to school, he'll collect an amount specified in the insurance policy to offset the lost earnings that result from no longer being a first round or lottery pick.

I think we talk about this scenario every March/April.

My understanding was that these only apply to career-ending injuries rather than something temporary that costs you draft position.

That sounds right for the NCAA's in-house program.

Per this journal article, if the student accepts the payout from the NCAA's ESDI program, he is forbidden from professional play at any level. If the athlete is injured to a medium degree, where he suffers a severe injury but not "permanent total disability," he's SOL.

I wonder how robust the private market is for this insurance. I'd assume there's more flexibility in terms...

[professorhoya]

Feb 26, 2013 20:45:52 GMT -5 hoyaboy1 said:

Feb 26, 2013 19:22:20 GMT -5 rosslynhoya said:

It's not medical insurance. The NBA-bound player executes a contract with a financial firm for a relatively small amount upfront (depending on his injury-proneness and other actuarial variables) and if he's injured during the year in which he returns to school, he'll collect an amount specified in the insurance policy to offset the lost earnings that result from no longer being a first round or lottery pick.

I think we talk about this scenario every March/April.

My understanding was that these only apply to career-ending injuries rather than something temporary that costs you draft position.

Yup. You would have to buy a separate insurance policy to cover a drop in draft position.

[CaliHoya]

Thanks, guys! Helpful info to see what types of stuff are out there to protect athletes. Like I said before, the purpose of this thread is not about whether or not Otto comes back, but just seeing how athletes who are locks for the lottery can protect themselves financially (in terms of losses of probably NBA earnings) in case of injury.

[lichoya68]

there are such policies hope ottos got one adn ps a little birdie told me maybe 50-50 coming back NOT GONE FOR SURE> just saying you never know would be great if he did come back yup really great. go hoyas GO OTTOmatic yeah.