Protect high earnings - disability income protection: Superstars & Highly Compensated

This case study highlights how specialized disability insurance safeguards high-earning professionals during critical career transitions. Below is the updated text, incorporating three major facts about how long-term disability (LTD) insurance provides a vital safety net.

Case Study: Protecting an NFL Career

In this case, an NFL Running Back drafted in the second round had completed three successful seasons. As he approached free agency and his largest projected paycheck to date, he needed an insurance policy to protect his future earning potential before the season began.

Assessment

Due to the physical nature of professional football, an injury or illness resulting in permanent total disability before signing a new contract would mean the loss of tens of millions in lifetime earnings. While a $5 million policy was initially in place, the player’s stellar performance prompted his advisor to request an increase to reflect his rising market value.

Solution

In this case we partnered with the player’s agent to develop a $10 million permanent total disability policy. This coverage was designed to mitigate the financial impact if a career-ending event occurred before his next contract was finalized.

Result

This tax-free benefit provided the player with peace of mind, ensuring his lifestyle and future were protected regardless of on-field risks. The premium for this specialized coverage was approximately $90,000 plus taxes and fees.

3 Key Facts: How LTD Protects Career Longevity

Beyond professional sports, long-term disability insurance serves as a foundational financial tool for high earners:

1. Bridging the "Income Gap": Most standard employer-paid plans cap monthly benefits at a level that covers only a fraction of a high-earner's salary. Private LTD policies fill this gap, ensuring that individuals can maintain their standard of living and meet complex financial obligations.

2. Protection Against Non-Physical Ailments: While athletes focus on physical injuries, career-changing disabilities often stem from common illnesses. Statistics show that 90% of long-term disability claims are caused by illnesses—such as cancer, heart disease, or neurological disorders—rather than accidents.

3. Tax-Free Financial Security: When premiums are paid with after-tax dollars, the disability benefit is typically received tax-free. This allows the recipient to keep the full value of the policy, which is critical when replacing a high-value contract or executive salary.

Chances are you are not an NFL-level athlete. However, the point to this is - even though NFL superstars require specialized underwriting, all high-earning individuals face a gap in disability protection that requires proactive planning. Do you have the most coverage for you and or your top-talent in your business or organization today? BONUS QUESTION: Are you aware of the benefit of grouping all executives with one insurance carrier for underwriting purposes, and broader coverage designs?

CONTACT: js@joesimon.solutions