A five-year, $105 million contract was on the table — and the biggest risk to it wasn’t a pitcher’s fastball, it was the chance the player never got to sign it. Here’s how we structured permanent total disability coverage to protect a Major League free agent through the riskiest year of his career.
Key takeaways
- A five-year, $105 million contract was at risk the moment a career-ending injury could happen before it was signed.
- Permanent total disability coverage pays a lump sum for a career-ending event, unlike standard monthly-benefit DI.
- The policy was sized against the player’s projected earnings, not his current salary.
We placed a $25 million permanent total disability policy — structured to pay a lump sum — for roughly $250,000 in premium, protecting a $105 million contract before it was even signed.
The situation
The client was an outfielder and designated hitter entering the final year of his current contract, heading into free agency, and projected to sign a five-year deal worth roughly $105 million. His advisor came to us with a clear problem: standard disability coverage wasn’t built for exposure like this. One career-ending injury or illness before that new contract was signed could cost the player, and his family, a life-changing amount of money.
Why permanent total disability was the right tool
For a high-income athlete, the exposure isn’t just “can’t work for a few months” — it’s “career over, permanently.” That calls for permanent total disability coverage designed to pay a lump sum, not a monthly benefit. We worked directly with the player’s agent and financial advisor to size a policy against his actual earnings trajectory, not just his current salary.
The solution
We placed a $25 million permanent total disability policy, structured to pay out as a lump sum, at a premium of roughly $250,000 plus taxes and fees. The policy protected the player against exactly the risk that mattered most: a career-ending injury or illness before his next contract was secured.
The result
The advisor, the agent, and the player all got what they needed: a comprehensive policy that let the player focus on the game, not on the what-ifs. He went on to sign his contract with that protection already in place.
If you’re working with a high-income earner ($500k+ annually) who’s an all-star in their own field — an athlete, executive, physician, or business owner — it’s very likely they carry exceptional income exposure that a standard policy won’t cover. That’s a case we can help you design.
Frequently asked questions
What is permanent total disability coverage?
It’s disability coverage designed to pay a lump sum if the insured suffers a career-ending injury or illness, rather than a monthly benefit. It’s typically used for high-income earners whose future earnings, not just their current paycheck, are the real exposure.
Who needs this kind of coverage?
Professional athletes, executives, physicians, and business owners earning $500k or more annually are the most common candidates — anyone whose income depends on a specific, hard-to-replace physical or professional ability.
Reviewed by Tim Fuller on 2026-09-23
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners — with the impaired-risk and complex-case expertise to place business other IMOs and BGAs turn away.
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