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Colin Kaepernick took out an insurance policy before renegotiated deal was signed

Colin Kaepernick safeguarded himself by purchasing an insurance policy

Colin Kaepernick safeguarded himself by purchasing an insurance policy

According to Ian Rapoport of NFL Media Insiders, 49ers quarterback Colin Kaepernick, took out a $7.5 million loss-of-value insurance policy prior to signing his renegotiated contract. The policy covers Kaepernick in case of a serious injury in a way that is similar to what his now-removed injury guarantees did.

If Kaepernick were injured and collected under the loss-of-value policy, the $7.5 million maximum payout he collected would not be subject to income taxes (assuming he paid the insurance policy premiums himself). The $7.5 million proceeds from the insurance policy would net him the same money on an after-tax basis as if he made a $14.5 million salary.

Kaepernick is a good player but this would cover his butt if an injury occurred.  People are saying that Kaepernick is lighter than he usual playing weight, but this would is a smart move by Kaepernick.  Sometimes it is better to be safe than sorry.

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