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Common Policy

May 04, 2009
May 04, 2009

Table of Contents
May 4, 2009

LEADING OFF
Inside: THE WEEK IN SPORTS
NBA PLAYOFFS
  • The first-round series between Boston and Chicago proved to be a first-class fight as the upstart Bulls played without fear and the Celtics struggled to mount a title defense with one superstar very notably absent

BASEBALL
PRO FOOTBALL
NHL PLAYOFFS
  • The Canucks' Daniel and Henrik Sedin are beyond symbiotic: They skate on the same line, score the same number of points and play identity tricks on refs. They're also in the second round, so who cares if their coach can't tell them apart?

SURFING
Departments

Common Policy

More draftees insure their NFL careers before they start

For a lucky few college players, getting picked high in the NFL draft means a lifetime of financial security. That's why more and more prospects aren't waiting till draft day to protect their futures. Before their final seasons many take out insurance against a career-ending injury. Most policies, which cost around $10,000 for each $1 million of coverage (first-round picks typically buy up to $5 million), are written by Lloyd's of London, which famously insured Tina Turner's legs and Keith Richards's hands. The policy expires as soon as a player signs a pro contract.

This is an article from the May 4, 2009 issue

Keith Lerner, a Gainesville, Fla.--based financial consultant, says that in 1990 only 15% of draft picks in the first three rounds had policies. Now nearly every player projected to go that early is insured. For example, three first-round picks this year—Larry English (chosen No. 16), Robert Ayers (18) and Kenny Britt (30)—bought policies ranging from $1 million to $3 million from Rich (Big Daddy) Salgado, president of Coastal Advisors, LLC, who has written various policies for 130 current pros.

One recent player who collected? Ed Chester, a Florida defensive lineman who suffered a knee injury in 1998. His $8,000 premium netted $1 million in coverage.

PHOTOJIM MCISAAC/GETTY IMAGES (BRITT)SAFETY NET Britt had seven-figure protection at Rutgers.