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