The Benefits of Professional Sports Insurance
Professional sports people, even semi professional sports people; really need to think about sports insurance. Theirs is a career, or a partial career, that is dependent on their bodily health and well being. A simple injury can represent a dramatic loss in earnings, or a shift in the focus of a sports person’s life, from full time participation to part time sports and part time earnings gathered from another source. Any shift of this sort in the fundamental earning bedrock of a family dynamic, if uninsured, can have catastrophic consequences for property and relationship. A simple insurance policy makes all the difference between sudden disaster and sustainable damage limitation.Sports insurance is designed specifically to protect against the risks associated with a given sport, the level to which it is played and even the average earnings that it generates. A rich and famous sports person, for example, needs insurance not just against loss of earnings, retirement adjustment and a change of the level at which he or she competes; but also against wealth related dangers. Sports people are particularly vulnerable to burglaries, especially famous sports people, because their movements are so widely publicised. If a football player, for example, is known to be playing a competitive match in Europe on Wednesday, then his house is easy to burgle on Wednesday night.
Sports insurance policies are worked out on a tailor made basis – that is to say, every premium and policy is customised to meet the exact needs, earning bracket, level of involvement and so on of the policy holder. A person who plays semi professional sport as a hobby and relies more on another occupation for his or her earnings requires far less insurance than someone who plays fully professional sport at a low earning level. Plenty of athletes fall into this category: the money they get is enough to pay the bills, but not enough to save. A career ending injury in a case like this can end up causing insolvency, huge debt problems, all sorts of side effects beyond the psychological and physical. Sports insurance, properly tailored, offers a reasonable cushion against such a sudden change in income – and can genuinely make the difference between a comfortable transition and a catastrophic one.
The premiums for sporting insurance policies are of course worked out in accordance with the level of cover, the value of the policy as a whole and an assessment of the risk. That means that lower earning professional sports people are able to protect themselves against loss of earnings, or open a policy with a retirement insurance clause, that they can afford. Retirement insurance is a particularly useful facet of sports insurance: a person can protect him or her self against the transition into retirement by paying premiums that ensure a payout once retirement has happened. In effect, it’s like a pension – the sports person pays premiums during his or her career and collects the pension at the end of it.
Sports is an exhilarating and individual career. All too often sports people feel they are invincible until it’s too late. A little forward planning, a simple insurance policy – and the career can reward even after it has finished.