We all know career ending insurance is important. However, too much focus when shopping for a policy can often be on price – not cover. What are some of the details behind a policy that makes some different to others and what should be brought to the front of the discussions more to make sure you have correct protection for all athletes and players.
WHAT IS CAREER ENDING INSURANCE?
An insurance policy that pays a lump sum benefit in the event a player’s career is ended prematurely through accidental bodily injury or illness. In the event of accidental death the benefit would be paid to the insured’s beneficiary.
HOW DO YOU DETERMINE THE LUMP SUM FOR INSURANCE?
Take into account all on and off field revenues. Typically, as a rough guide we suggest 4x annual salary but other factors can determine this amount such as age and contract length. If you are unsure if you have the right amount contact your broker.
HOW ARE PRE EXISTING CONDITIONS DETERMINED?
For us, this is the most important aspect to get finalised before deciding on your insurance – more important than price. As it is this area that can cause upset when an incident resulting in a claim notification can arise.
Having a list of all injuries – usually from medical records and clarifying with the underwriters, after which all parties agree on what would be classified as pre existing. It’s a fairly fluid/flexible process judged on time out and how long ago it was and type of injury. EG a 6 week spell out 7 years ago wouldn’t necessarily cause a problem but 3 months on the side-lines last year for an ankle injury may be looked at.
The key thing though is to get pre existing finalised for each player BEFORE any insurance is finalised so everyone is aware of what constitutes “pre existing”. It is only once this stage is finalised can all parties be said to be in agreement and understand what they are insuring against.
WHAT IS MEANT BY NOTICE PERIOD IN CAREER ENDING INSURANCE?
The other area of consideration is games played before that injury doesn’t become active anymore, and the notice period you need to give underwriters.
EG if a player has a serious ankle injury and is out for 6 months. Some policies will say if they play 8 games they are deemed “ok” ad the ankle injury can not activate a claim. Of course this may not be the case and by game 9 the injury hasn’t gone fully and it puts the player in a very difficult situation insurance wise. It’s a difficult situation of wanting to play but being concerned about a niggling injury potentially voiding your insurance if you carry on
Therefore, look for a policy with a longer notice period. Some policies offer as little as 8 games, others up to 2 years. You can see this alone can cause huge difference in coverage for players and can be make or break at point of claim.
WHAT IS A PROPORTIONAL BENEFIT CLAUSE?
Typically another benefit, in that you can get a pay out on the policy if the injury only limits your performance/earnings – but does not stop completely. EG you can play at some level and still earn but not at the level you were pre injury. A lot of policies wont allow payment in this circumstance and can be very limiting for players who can still play at some level.
CONCUSSION IN INSURANCE – DOES IT PAY OUT?
Another key part to get right which is a hot topic with players and an area where again many policies fall short potentially. Whilst this is hugely important for Rugby and has been for sometime, we are also seeing the importance rise in other sports. Check with your broker where your policy stands on
With this, concussion is covered for the first bout (considered to be degenerative thereafter and not covered
So while of course its important to get best price, we can see how various policies can differ greatly in coverage. We’ve highlighted above the biggest areas that we have seen.
For more information on FTC’s career ending insurance see here
If you have any further questions you would like answers on, or wish to get in touch for a quote on career ending insurance, please get in touch with our advisor Matthew Dewen 07734308959
Matthew.dewen@fulltimecover.com who will only be too pleased to help.