Concussions, torn ACLs, the whole nine yards… injuries are a nasty part of the game, even at the college level. You know the drill – gotta protect yourself, right? Same goes for these college football stars. These guys are risking it all, chasing that NFL dream. One wrong hit, and their whole future could be derailed. That’s why a growing number of top prospects are smart and getting “loss-of-value” insurance. Think of it as a safety net.

Basically, if a devastating injury tanks their draft stock, this insurance helps cushion the blow. It’s like a backup plan for when things go south. This gives them a little peace of mind knowing they’re covered if the worst-case scenario happens.

Although student-athlete insurance policies are not a novel concept, their specifics have swiftly changed in recent years, increasing their use. Less than ten years ago, a total disability insurance plan was the only practical choice for a football player who wanted to safeguard his value in the event of an injury.

However, it enables top players to get compensation if an injury lowers their anticipated selection position. The sequence in which a player gets selected determines their NFL rookie salary. The value of an athlete’s first contract might, therefore, be significantly impacted by dropping from the first to the second round. The NCAA advises only prospective first and second-round picks to purchase this insurance; claims may total $1 million to $10 million.

For instance, in December 2014, Oregon CB Ifo Ekpre-Olomu sustained an injury that made headlines. He was one of the most sought-after prospects for the NFL Draft. That is until he blew his ACL during practice a few days prior to his last game as a college student. After losing to the 7th round, he was awarded $3 million in a loss of value.

More recently, Tennessee Titans offensive tackle Chance Warmack became the first NFL player to receive a loss-of-value claim after his 2nd contract was less than anticipated. So, this version of the rules protects current league players from injuries or subpar performance. There is a query, though, about NCAA athletes’ disability insurance. What is it, really?

Is disability insurance protecting college athletes’ dreams?

For NCAA athletes who show a high potential for professional sports careers, the ESDI Program is intended to offer financial security. In order to be eligible for the insurance, student-athletes must still be eligible to play for NCAA schools. And to be a ‘prospect,’ you gotta be killing it on the field. It means you’re not just playing a sport, whether it’s basketball, football, or something else, but you’re showing serious potential to go pro. We’re talking about those guys who are expected to be high draft picks in the NFL, MLB, or any other major league.

Under this insurance program, athletes receive a one-time lump-sum payment if they are eligible for benefits following 12 months of total incapacity. Due to the incapacity to play professionally, this reimbursement helps compensate for the loss of future earnings and is tax-free.

Although disability insurance offers necessary coverage, the premiums are usually paid by athletes or their families. They might, however, be eligible for loans to pay for these expenses, which are deferred until specific requirements are fulfilled.

So, are you one of those ‘prospects?’ If so, it’s time to seriously consider how you’re protecting that potential paycheck. Because let’s be honest, injuries happen.