Life Insurance Protection for the Professional Athlete
Unique circumstances, unique needs, and unique opportunities require unique solutions.
Did you know the average NFL player’s career lasts just three years?
Financial planning for professional athletes presents both extraordinary opportunities and significant challenges. Earnings potential is often concentrated into a very short window, requiring advisors to think long-term and plan well beyond the athlete’s active career. In addition, the unexpected death or disability of a professional athlete can leave a spouse and family in serious financial difficulty if income abruptly stops.
Underwriting life, disability, and long-term care insurance for professional athletes introduces additional complexity due to carrier limitations and elevated risk factors. If an opportunity arises to insure a professional athlete in ANY sport, it is strongly recommended that you call AgencyONE first to discuss the appropriate underwriting path to achieve the client’s goals.
Definition: Professional Athlete
The term professional athlete extends beyond players. For major leagues – including the NFL, NBA, NHL, MLB, and Major League Soccer – this category also includes:
– Coaches
– Trainers
– Managers
Individual professional athletes in sports such as tennis, golf, skiing, and auto racing are evaluated on a case-by-case basis; however, many of the same underwriting concerns apply.
Underwriting Risk Class
It is a common misconception that all professional athletes qualify for preferred or best risk classes. In reality, several carriers offer ONLY Standard rate classes for certain sports.
Because most professional athletes are younger, the pricing difference between Standard, Standard Plus, and Preferred may appear minimal – until coverage amounts reach millions of dollars, at which point the impact becomes significant.
Medical Exams and Testing
Despite the perception that professional athletes are young and exceptionally healthy, insurance carriers require full underwriting exams, including blood and urine testing.
Please refer to AgencyONE’s Exam Prep Video for guidance on all cases requiring paramedical exams.
A critical note for athletes: While cigarette smoking is uncommon among professional athletes, occasional use of cigars, nicotine gum, chewing tobacco, or nicotine pouches (e.g., ZYN) is less uncommon. However, these products contain nicotine and can result in a positive nicotine test, which may cause most insurance carriers to classify the individual under a smoker rate class. Some exceptions exist. Call AgencyONE before the exam to discuss them.
Retention Limits and Carrier Risk Exposure
Team sports present a unique challenge due to concentration of risk – entire teams travel together. As a result:
- Carriers impose limits on coverage amounts
- Roster checks may be required prior to final underwriting
- Only one carrier currently offers flexibility beyond standard limits
Foreign Travel and Foreign Residence
Professional athletes frequently engage in off-season contracts abroad, and some U.S. citizens play for non-U.S.-based teams. These situations introduce additional underwriting risk and require specialized consideration.
Addendum: Amateur Athletes – Opportunity
With the implementation of NIL (Name, Image, and Likeness) agreements, student athletes – sometimes even at the high school level – can now receive financial compensation.
While very few will ultimately become professionals, this creates a powerful planning opportunity:
- Life insurance
- Disability insurance
- Long-term care contracts and riders
These solutions can be put in place before the athlete is classified as “professional,” avoiding many of the underwriting limitations that apply later.
Something to consider as you watch college football, high school basketball, or the Olympics.
Case Studies
Mr. Jones – Professional Basketball Player
This case really highlights excellent coordination under pressure. With $35 million of existing coverage already layered across multiple carriers, navigating the reinsurance JUMBO line was no small feat. The team’s ability to align capacity across reinsurers within just a few days – and secure Select Preferred rates despite the extensive drug and alcohol screening requirements common for pro athletes – is impressive.
The end result: a fully underwritten, permanent trust-owned solution of up to $50 million that matches the client’s substantial income and planning needs.
Mr. Smith – Professional Race Car Driver
This case represented a very compelling, multidimensional risk. Between NASCAR, multiple racing classes, and deep‑water scuba diving (150‑foot shipwreck dives), the hazards are both occupational and avocational. The split placement – Whole Life for the personal need and Term for the racing team’s Key Person protection – was a smart structural approach.
The end result: the negotiated Preferred base rating plus a modest flat extra reflects strong advocacy and thoughtful reinsurance alignment.
Overall, these cases highlight careful coordination, strategic carrier selection, and insightful reinsurance partnership – great examples of how complex risks can still result in favorable outcomes.
Conclusion
AgencyONE routinely addresses the underwriting complexities unique to professional athletes across all sports. One size does not fit all – we have a deep bench of solutions ready to deploy.
Contact the AgencyONE Underwriting Department at 301.803.7500
for more information or to discuss a case.
