Rice, Petersen could it get any worse? Yes

Ray Rice and Adrian Petersen may be catching the headlines, but the problems run deeper

Insurance News

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It may be Ray Rice and Adrian Petersen grabbing the headlines in the NFL, but their problems run deeper than what has been covered by the mainstream media. 

As everyone in America knows this has been one of the darkest months in the history of the National Football League, and the trend looks set to continue according to recent estimates. 

In order to resolve players’ head-injury claims the NFL has been given a predicted payout of $950 million based on the fact that one in five potential class suit members will seek compensation for injuries eligible for cash awards. 

The analysis done for the lead plaintiffs’ lawyers found some 3,600 players, about 17 percent of potential class members, would get paid. About 15,000 won’t develop injuries eligible for compensation, while roughly 2,300 former players who have qualifying injuries won’t participate in the program, according to the analysis.

Now although this case doesn’t directly relate to agents and brokers, the potential earnings from selling disability insurance does. 

“As with many sports, football players will be surrounded by injuries throughout their time on the field,” states Frank N. Darras, a disability insurance provider. “Football is a rough and tumble sport, meaning serious injuries may not be common place but they are not unexpected. Most professional athletes know they have a significant chance of a career-ending injury, which is why most should invest in a disability insurance policy.”

Disability policies pay benefits to the policyholder if they are injured, and considering many of these athletes leave school early to become NFL professionals they may need time to get their feet under them in these instances. 

In August 2013, the league agreed to pay $765 million to settle the concussion claims. The judge denied preliminary approval of that deal in January on concern it wouldn’t be enough to fund all claims over 65 years. Under the terms of a revised deal, announced June 25, the NFL would pay at least $675 million in cash to retirees suffering from conditions including dementia.

Insurance providers could serve as a beacon of shining light for these injured NFL stars, embodying the altruistic trend shaping the industry in recent years. 

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