Thanks

Yea this is an unexpected happy ending. Thats why you need people in your corner checking all of the boxes.

Its probably termed to the length of the contract. And these are young very healthy men who need to keep their bodys in top condition.

I would guess that it’s an NBA wide policy which would keep premiums relatively low. When is the last time an under contract athlete died? I can’t think of another example off the top of my head.

I’m a normal everyday 23 year old with a 10x salary multiple for a \(2,000,000 life insurance policy. I don’t think \)12,000,000 would be that insane. Certainly not for someone who was making NBA money.

The injury premiums are the ones that are pricy…

Term not Whole Life

Can be set up as a Key Person by the team or his business manager sets up a policy is paid via salary annually, in full

Not too crazy I think. I have a \(3.5 million policy for \)120 a month

I have a 2 million 20 year term policy that expires in 8 more years. It costs me about 92 a month.

There’s like 500 players and they pay out 10 million dollars once a decade so it should be about 2000 dollars a year? Feel free to adjust all the numbers here.

I’m a fatass 40 year old and pay like \(1k/year for \)2M of coverage for 20-years

For a young athlete AND short time horizon, it’s probably pretty low

A ²⁰⁄₃₀-year $1 mil term life insurance policy isn’t uncommon these days for working professionals with young kids. A life insurance policy for just 1 year salary is peanuts by comparison. 

If you work in insurance I’m not sure why this would seem crazy. I bet the premium would actually be relatively low. Like probably a few hundred a month.

If every NBA player gets life insurance on their contracts, then the insurance companies are making a killing because an active NBA player dying is very rare.

I mean, not really. I don’t work with CEOs of public companies and wrote plenty of \(5 mil policies for regular doctors. Some even inquired about higher but we had to go through speciality channels for that and the UW got even more stringent and took longer. So we'd just do the \)5 mil.

Assuming someone is healthy and it’s a term policy (and given this would likely have a short term since it’s covering the contracted years), it’s probably not crazy expensive.

$12mm is peanuts. What are you smoking

We placed $450mm permanent DB across 3 family members

Pretty low on contracts like these actually.

I can’t believe anyone can collect after an overdose of illegal drugs.

Reading my own policy and the one tied to my pension, don’t expect my wife could collect if I died the way he did.

Seriously. Especially for a site/sub that prides themselves on being progressive and liberal, lol

I’m one of the people who didn’t expect it to be paid out given the nature of his passing as it would be voided even if he was alive due to the drug use.

However I also think there is people out there that speculate why it would or would not be paid out for legal reasons and then there is the people that object to because it morally offends them and a difference should be noted.

Side note: I don’t care if it’s paid out since it’s not my money. It’s not tax dollars.

People are way too vested in someone else work. These lawyers, agents and actuaries have prepared for this 10x over. It’s not the first and not the last time they will be in this situation unfortunately either.

I think he had a girlfriend, but no kids.

Fiancee but not married

But isn’t the reason the player isn’t playing, at least in this instance, is because the team sent him away?

If they asked him to come back and play, he’d be obligated to play wouldn’t he? Or he just wouldn’t get paid? In the event of death the contract is frustrated and can’t be fulfilled and would therefore be voided.

Maybe I’m not understanding the context of his departure from the grizzlies though.

Also paying out through insurance instead of just paying out the contract are different things.

[removed]

what was their post?

I mean, sure, glad the money is paying out, but without this his family should already have enough money to guarantee they don’t need to work.

The Grizzlies won brownie points because it’s a sentimental subject. Any other employer would void that contract for any normal person.

That is how it reads to me, which basketball wise is why his contract won’t count against the cap this season?

It’s not similar to suicide because an accidental overdose death isn’t the same as someone trying to end their life. I hope this helps

It was a big talking point on this sub this morning.

Why is any personal information about famous people important to you and me?

It’s not, but people (generally) like to know about the lives of others. That’s why celeb culture is a thing.

Because no death should void a guaranteed contract.