Disability Insurance for Athletes
Athletes train hard to stay in peak condition, but an unexpected illness or injury can take them out of the game. For professional athletes who depend on their physical performance for their income, this is devastating in more ways than one. Disability insurance for athletes provides income replacement, allowing athletes to protect their finances and focuses on their recovery.
How Many Professional Athletes Are There?
- The U.S. Bureau of Labor Statistics (BLS) says there are 19,100 professional athletes and sports competitors in the U.S. as of 2024. Between 2024 and 2034, employment is expected to increase by 5%, which is faster than the average rate for all occupations. The median pay for athletes is $62,360 a year. However, top athletes can earn far more than this and may receive lucrative sponsorship deals.
- There are even more college athletes. According to Statista, there are 540,000 NCAA student athletes as of 2024. Historically, college athletes were not eligible for significant compensation, and many lived below the poverty level. However, a recent court rule has changed this. According to the National Law Review, the case House v. NCAA has transformed college sports with a $2,576 billion settlement and new rules that make NCAA student athletes eligible for direct revenue sharing with a $20.5 million cap per school.
These changes mean that college athletes can now command a substantial income – and they also have a substantial need for disability insurance. Professional athletes, college athletes and even high school athletes who are being drafted can benefit from the protection of specialty disability insurance products designed for athletes.
Athletes Need Disability Insurance
Athletes can earn significant money during the peak of their careers, but in many sports, those careers tend to be short. As a result, athletes are depending on their ability to perform so they can save money for an early retirement. If a disability takes them out of competition, it’s not just the current season that’s at risk. It’s their financial security and the future they’ve worked hard to create.
Consider a disability that takes you out of work for a year. For the average person with a 40-year career, this could be a financial disaster. For an athlete with a 10-year career, the long-term consequences are even more dire.
Loss of Value Disability Insurance
Some disabilities are career-ending for athletes, even if recovery is possible. For example, a disability that occurs during a key period in an athlete’s career, such as right before they were set to get drafted, can upend an athletic career before it even starts.
Loss of Value disability insurance provides coverage for this risk. Athletes can purchase this coverage before the draft process, and the policy can provide a payout if a disability results in a lower draft value than expected. This is a specialized type of disability insurance for athletes.
Protecting an Investment
Athletes have made major investments into their careers, often both in time and money. They may have paid for professional coaching and other types of training to help them rise to competition level. Regardless of whether they’ve paid for professional coaching, they have doubtless devoted countless hours to their training, often at the cost of other activities.
Everything is riding on their athletic career. If a disability disrupts or even ends that career prematurely, they may be without another good way to earn money, leading to financial disaster for them and the family members who are depending on them. Disability insurance is a smart way to protect the investment they’ve put into their athletic careers.
Types of Athletes in Need of Disability Insurance
When you think of professional athletes, you may think of NBA and NFL stars earning millions of dollars per year. These athletes can certainly benefit from disability insurance. However, there are many other athletes who also make a living through their chosen sports, and they are also good candidates for coverage.
When looking for disability insurance prospects, consider a wide range of sports, including:
- Football
- Basketball
- Baseball
- Volleyball
- Track
- Golf
- Tennis
- Swimming
- Gymnastics
- Ice Skating
- Lacrosse
- Soccer
Also include different types of athletes, such as:
- Major League Athletes
- Minor League Athletes
- Independent League Athletes
- Women’s Sports
- Men’s Sports
- Professional Athletes
- College Athletes
- Draft Prospects
Where to Find Athletes in Need of Disability Insurance
When looking for athletes who need disability insurance, there are many places to go.
- High Schools. Get to know the coaches and watch for any athletes who are expected to become college athletes. These promising athletes may want to secure disability insurance early on in their careers, especially now that college athletes can earn substantial incomes under new NCAA rules.
- Universities. If you live near a university, the athletes there may need disability insurance. Don’t just focus on the football and basketball players. Universities typically have many different types of sports teams, and although they may not earn as much as basketball and football players, they may still have an income worth protecting under new NCAA revenue sharing rules.
- Clubs. Head out to your local golf club, tennis club or other athletic club and start making connections. There may be athletes who compete at the national or international level and need disability insurance.
- Leagues. In addition to the major leagues, consider the needs of athletes who play for the minor leagues or independent leagues. They may also have disability insurance needs that you can cover.
How to Get Started Selling Disability Insurance to Athletes
While this may seem like a small niche, it can be worth pursuing. Athletes have unique disability insurance needs, and the average disability insurance agent may not be prepared to serve them. If you can establish yourself as the go-to disability insurance agent for athletes in your area, you could build a lucrative specialty. This is a particularly good time to pursue this market due to the recent changes in pay for college athletes.
You just need to get your foot in the door.
- Start building connections with athletes and coaches in your area. If you have any personal connections, this is the time to leverage them. Maybe you used to play sports, or you have a friend or family member who plays sports now or used to. Start networking to identify athletes in need of coverage. Once you have a couple of athletes as clients, try to get referral business.
- Determine their coverage needs. One important consideration is whether they need coverage for their current income or whether they need Loss of Value coverage for their potential income ahead of a draft. Also consider any other coverage needs and appropriate riders.
- Compare quotes from multiple providers. Use the DIS Analyzer to quickly see and compare quotes from multiple providers.
- Complete your application. Ask your client to provide essential details so you can submit a thorough application, and review if for accuracy before you hit submit.
- Educate your client ahead of the phone interview. Let your client know what to expect so they are prepared to answer questions.
- Navigate underwriting. Your client may need to undergo medical examinations and other underwriting requirements. Help guide them through the process.
Want to make it easy? Work with DIS. Breaking into a specialty market can be challenging without the right support. DIS can help you with this process so you can close your sales.
Are You Ready to Serve the Athletes Disability Insurance Market?
If you’re an athlete, an insurance agent can help you find coverage. Find an agent.
Are You an Insurance Agent?
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