For most players, slipping into the second round of the NFL Draft means less money. Not for Marqise Lee, though. The former Southern California wide receiver took out an insurance policy before the 2013 season that would pay him if he sustained an injury or fell in the NFL Draft. Lee was projected to be picked highly, but he ended up getting selected by Jacksonville in the second round.
Lloyd’s of London projected Marqise Lee to be #6 in this draft. Has a loss of value policy. If he can prove injury, collects $4.4M.
— darren rovell (@darrenrovell) May 9, 2014
The policy Lee took out was a $10 million total disability insurance policy, that would pay the receiver the lump sum if he sustained a career ending injury. Part of that policy included a loss-of-value package, that will pay the former Trojan since he slipped in the NFL Draft. The money given is tax free.
The NCAA does provide such policies for its players, but they cap their policies at $5 million and do not allow for loss-of-value collections, so Lee went outside of the NCAA’s program.