Disability & Loss-of-Value Insurance
Permanent total disability and loss-of-value (LOV) insurance protect an elite athlete's projected professional earnings — paying a benefit if a career-ending injury occurs, or if an injury drops their draft position and contract value.
Disability & Loss-of-Value for Elite Prospects
For a small number of student athletes, a professional career is a realistic and valuable prospect. An injury before they sign can erase millions in future earnings. Two specialized coverages protect that value — and NCAA and NAIA rules expressly permit athletes to finance them without affecting eligibility.
Permanent Total Disability (PTD) Insurance
PTD insurance pays a lump-sum, tax-free benefit if a covered injury or illness permanently prevents the athlete from ever playing their sport professionally. It protects against the worst case: a career that ends before it begins.
Loss-of-Value (LOV) Insurance
LOV coverage is more nuanced. If a draft-eligible athlete suffers a covered injury that causes their draft stock — and therefore their first contract — to fall below a pre-set threshold, LOV pays the difference. It protects the athlete who still plays, but for far less money than projected.
How Athletes Finance It
- NCAA rules permit athletes to borrow against future earnings to pay premiums
- Programs may assist elite prospects in arranging coverage through the NCAA's exceptional student-athlete disability insurance program or the private market
- Premiums are based on projected draft position and contract value
Who Should Consider It
Projected early-round draft prospects in football, basketball, baseball, and hockey — and their families and advisors — are the typical candidates. We help structure PTD and LOV coverage that fits the athlete's projection and stays within eligibility rules.
What's Covered
Frequently Asked Questions
No. NCAA and NAIA rules expressly permit athletes to obtain permanent disability and loss-of-value coverage and even to borrow against future earnings to pay the premium. We structure coverage to stay within those rules.
Permanent total disability pays if a career-ending injury stops the athlete from ever playing professionally. Loss-of-value pays when the athlete still turns pro, but a covered injury drops their draft position and first contract below an agreed threshold.