What Was Colin Kaepernick’s $7.5 Million Insurance Policy That Assured Him Full Tax-Free Money With the Niners?

The athlete turned activist Colin Kaepernick was one of the most decorated athletes during his time at the Niners. However, his actions sidelined him from the league for more than five years. Despite having a six-year lucrative contract, he chose to rework a deal that trimmed the last four years of his contract. In return, he was offered insurance that paid him well in case he get injured during the subsequent season.

The Niners selected Colin Kaepernick in the second round of the 2011 NFL draft. He was offered a four-year $5.1 million contract with an average of $1.2 million per year. After four successful seasons in the locker room, he was given another six-year extension worth $114 million with $61 million in guaranteed money.

However, things changed for the Nevada product when he nodded to restructuring his contract. The final four years were slashed from his contract and was supposed to receive $16.5 million for a season. Moreover, the Niners got him a unique $7.5 million insurance policy, adding an easily attainable $1 million with the policy.

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Per reports, it was a three-part, $500,000 insurance policy. It states that if Kaepernick gets injured to the extent that he would not be able to play in the subsequent season, he will get $7.5 million tax-free money.

It was a clever move by the Niners to keep him intact simultaneously, mitigating their losses in the future. Apart from receiving, Kaepernick also made sure that he gives it back to the community.

Colin Kaepernick donated more than a million to the charity

After stepping out of the league, Kaepernick began a new “Know your rights” campaign. It emphasizes raising the funds for the poor and specific communities in society. He donated more than $1.75 million of his own money to the cause two years ago.

He also received participation from prominent personalities across the sports fraternity. Kaepernick initiated a 10 for 10 challenge where donors would contribute $10,000 at once to complete his $1 million pledge. Surprisingly, celebrities like Chris Brown, Serena Williams, Steph Curry, and many more joined the cause.

No doubt, this challenge took no time to get accomplished, and the veteran was successful in collecting $1 million. Although there are still uncertainties looming over his NFL comeback, it will be interesting to see if the quarterback can ever make a return again!

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