NFL player’s insurance investment may pay off

NFL player’s insurance investment may pay off | Insurance Business America

NFL player’s insurance investment may pay off

Philadelphia Eagles running back Jay Ajayi is probably thanking his lucky stars that he planned ahead.

Ajayi is out for the season after tearing an ACL recently. That could significantly affect his value when he becomes a free agent at the end of the season – but he took out a loss-of-value insurance policy before the injury, according to a Yahoo Sports report. The policy can pay him up to $5 million, tax free, if he loses money in free agency because of the injury.

Ajayi has had a good career with the Miami Dolphins and the Eagles despite a history of trouble with his right knee, according to Yahoo Sports. The knee trouble is likely what led him to take out the insurance policy. The ACL tear was in his left knee.

According to Ajayi’s business manager, Josh Sanchez, the policy will help make up the difference if the ACL tear leads Ajayi to make less than his market value in free agency. Similar policies generally cost $80,000 to $100,000, according to Yahoo Sports – a significant chunk of Ajayi’s $1.9 million salary. With the ACL injury ending his season and possibly lowering his salary in free agency, however, the investment may well have been a wise one.