What happens if a player gets hurt before signing their upcoming contract?
A career as a professional athlete offers many great rewards, but also comes with a share of challenges. Strenuous demand on a professional athlete’s body requires unique insurance coverage to protect future earnings and their affluent lifestyle.
Mansha Plan provides coverage to professional and top college athletes. Coverage is designed to protect potential future earnings or non-guaranteed contracts. Contract coverage is also available for teams or sponsors looking to protect their most valued
players.
Problem:
Athletes nearing the end of their contract can have large future earnings potential which is reliant on many things until they sign the dotted line. Their health and being physically able is the most important and something that the individual isn’t always in control of.
Solution:
Athletes High Limit Disability/Illness Policy for Loss of [Future] Value
Case Study
Athletes and their incomes aren’t always insurable through traditional lines of insurance. Specialty insurers and underwriters are generally needed to get sufficient coverage for athletes. Another caveat is that almost all disability insurance options are based on past income which in some cases can only be a tiny fraction of potential future earnings of an athlete approaching a contract year. Specialty insurers will use crafty techniques to come up with great value options in these rare cases.
A 24-year-old professional hockey player was in the last year of his first considerable contract. Statistically, the player was expected to sign a new $40 million deal at the end of the season or in the coming offseason, if his stats, health, and body remained the same through the final year. Knowing his new contract would be significantly higher than his current contract traditional lines of disability coverage would leave a gap to what he knew his potential next contract could look like. To protect the player’s projected income from an uncontrollable loss, Mansha Plan created a High Limit Disability, Loss of Value policy. The LOV contract was designed to deploy a benefit relative to the income lost in the event the player is forced to sign a contract of lesser value due to an accident or sickness affecting performance.