How to safeguard Athletes Income.
For professional athletes in the UK, safeguarding Athletes’ income is crucial, especially considering the potential risks associated with their careers.
Fortunately, there are several protection policies available to athletes that can provide financial security in case of career-ending events, injuries, or illnesses.
This article will explore the importance of these policies and how athletes can benefit from them.
Career-Ending Insurance
Career-ending insurance is a key component of protecting athletes’ income. This type of insurance offers a tax-free lump sum payment if an injury or illness prematurely ends their professional sporting career.
The amount of the lump sum typically depends on factors such as the athlete’s age and annual wage. It can provide athletes with financial support during a challenging transition period and help them pick up the pieces after their career has ended.
Income Protection
Income protection insurance is designed to provide a regular income stream to athletes who are temporarily unable to participate in their sport due to injury or illness.
This insurance pays out a portion of their pre-tax income (roughly 70%), helping them cover their living expenses while they recover.
Income protection insurance can be tailored to the specific needs and circumstances of each athlete, ensuring they have the necessary financial support during their rehabilitation period.
Should the athlete become ill or have an accident, the policy will pay out a tax-free regular instalment until the player is well enough to return. This therefore becomes crucial in plugging any gaps in their income should they not be able to play their chosen sport.
Additional Benefits
Aside from career-ending and income protection insurance, there are additional benefits that can help athletes safeguard their income:
Mental Health Support
Dealing with career-ending injuries or illnesses can take a toll on an athlete’s mental well-being. Some insurance policies offer additional counselling benefits to support athletes with mental health issues. These services provide access to specialist counsellors and psychological therapists, helping athletes cope with the challenges they face.
Retraining for a New Career
When an athlete’s sporting career comes to an end, they may need assistance in transitioning to a new profession. Insurance pay-outs can allocate funds for retraining, enabling athletes to acquire the necessary skills and education for a new career path.
Personal Accident and Illness Insurance
Personal accident and illness insurance policies provide long-term financial protection for athletes. These policies are tailored to each athlete’s needs and offer benefits such as coverage for club and international matches, minimal medical exclusions, extended claim notification periods, and rehabilitation funds for vocational education expenses. They also cover treatment expenses related to mental health issues.
Obtaining the Right Protection
To obtain the appropriate protection, athletes should consider the following steps:
Gather Relevant Information
To receive a quote for career-ending insurance, athletes typically need to provide details such as their name, address, date of birth, sport, club, current contract expiry date, and annual salary. These details are used to determine the level of cover that can be offered.
Consult with Insurance Experts
Working with experienced insurance providers who specialise in serving professional athletes is crucial. These experts understand the unique risks, concerns, and challenges faced by athletes and can tailor insurance policies to their specific needs.
Evaluate Existing Coverage
Athletes who already have insurance coverage through their club should assess whether it provides adequate long-term financial security. Personal accident and illness policies can act as a top-up to existing insurance provisions, ensuring comprehensive protection.
Conclusion
Athletes in the UK can protect their income and secure their financial future by choosing the right protection policies.
Career-ending insurance and income protection insurance provide vital support in case of career-ending events, injuries, or illnesses.
Additional benefits such as mental health support, retraining opportunities, and personal accident and illness insurance further enhance athletes’ financial security.
By taking proactive steps and consulting with insurance experts, athletes can safeguard their income and focus on their physical and mental well-being both during and after their sporting careers.
