Oregon rising junior defensive lineman Arik Armstead has purchased a large disability and loss of value insurance policy with $5 million in coverage, multiple sources close to the situation told Yahoo Sports.
An industry source said Armstead’s policy is based upon a projection that the player will be selected between the middle of the first and top of the second round if he declares for the 2015 NFL draft.
Though there are exceptions, industry experts say underclassmen who purchase insurance policies comparable to Armstead’s are generally preparing to enter the NFL draft following the season they purchased coverage for. That reality is due in large part to the hefty premiums players (often with the help of their families) have to pay out of pocket to protect themselves. Policies the size of Armstead’s can carry a $40,000 to $50,000 premium payment, which industry sources say most players have to obtain financing for.
While the NCAA sponsors a disability insurance program for some college athletes in select sports which allows them to obtain "total permanent disability" coverage and a loan to cover the premium on that portion of their policy, they do not sponsor a program that offers loss of value coverage.
Armstead, a 6-foot-8, 300-pound defensive tackle and defensive end, was universally considered one of the top players in the nation coming out of high school in 2012. He has seen significant playing time for the Ducks during his freshman and sophomore campaigns, starting six games while playing in all 26 since he arrived in Eugene.
While unable to discuss the specifics of Armstead’s policy, executive vice president of International Specialty Insurance, Chris Larcheveque, told Yahoo Sports that roughly 60 percent of the top 100 to 150 prospects seek out and purchase disability and/or loss of value coverage.
Oregon’s redshirt sophomore quarterback Marcus Mariota previously purchased a large disability plan with coverage in excess of $5 million which included protection for loss of value.