The scheme of an athlete ensuring his or her body is not new. We’ve all heard stories of young, extremely gifted athletes catching out policies to ensure valuable knees, ankles, and pitching arms. It’s like real estate. It’s all about location and occupation. In 2006, David Beckham took out a $78 million policy for his legs. Three years back, fellow soccer celebrity Christiano Ronaldo was fouled so often that Real Madrid ensured his lower body for $153 million.
Sports: Many superstars have insured their body parts critical to their success
It is a form of insurance which can offer financial mask and protect an individual’s resources if they rely on a specific part of their body to earn a living. The purpose of body parts insurance is in paying out a financial settlement for any unforeseen damage or disfigurement caused to the insured body part. The vital point to note here is that the allowance policy will only pay out if the damage to that body part results in a loss of work and thus income.
This tie-in is really no different than an accustomed employer/employee relationship in which a group policy is taken out by the owners.Depending on the insurance policy given, and how dependent the persons are on certain body parts to earn their living, their body parts might be insured for different amounts.As salaries in professional sports have shot up over the past few decades, so has the price tag associated with the risks ingrained in such demanding physical activity. Professionals in sports like golf and tennis often buy their individual insurance, though those with repeated conditions have trouble getting coverage.It’s common practice for clubs to ensure their players, protecting their investments, but sports teams that offer guaranteed bonds face enormous losses if stars are injured, even only impermanently. As a result, the economics of the bag are now shaped by insurance markets just as they are by TV contracts or ticket sales.
Management figure how are they worth
The insurance companies will go through the possibilities with them, and try to figure out how much each of their body parts is worth. While there is no way to truly put a dollar value on some of their different body parts, especially when they consider what they are worth to them as they make a living, the fact of the matter is that someone elsewhere can always put a dollar price on them. To put all this in perspective, we made various research and policies to come to a conclusion. This is what we learnt. To come up with the figures, the underwriters considered the athletes’ age, sport, their estimate of yearly income (including available endorsement figures) and injury history.
It makes perfect sense
In short, the clubs have to save their investment and they play a major role in determining the value of the body part. There is also a publicity stunt involved in it. In other words, yes, athletes probably really do insure their body parts, but maybe for not much more than a few dollars a month, the periodical payments are tokens in comparison for the press such an announcement brings both to the entertainer and the insurance cut.
In the end, on the fitness care perspective, the athlete insurance factor is not much contrasting from the coverage you or I receive from our management. Like us, professional athletes are also interested in safeguarding their belongings, which frequently include their income producing body parts, and for that legacy they often turn exclusive policies with private insurers that supply to their specific needs. The difference is that they are just worth more than the others.