This time of year in the rugby season is often associated with injuries, and some high-profile players are already facing long spells on the sidelines.
Seemingly every week, you will read stories of serious injuries. For example, Alex Mitchell and Fraser Dingwall missed the recent Autumn International series, and Saracens and Scotland flanker Andy Onyeama-Christie sustained a serious ankle injury in a game against Harlequins that will see him out of action for months.
Understandably, you may be concerned about injuries affecting your career and future earnings. Fortunately, this is where having the right financial protection in place can be valuable, potentially providing important reassurance for you and your loved ones.
In this article, you can read about some of the ways to protect yourself and your loved ones against the financial effects of serious injury on the pitch, and serious illness off it.
A loss of earnings could put you and your loved ones in a precarious financial position
Earning a good wage as a professional player can provide you with a comfortable lifestyle, but it does not automatically protect you from financial issues.
All players accept that injuries occur while playing a demanding and highly physical contact sport. Indeed, FirstAid4Sport estimates that at least 25% of players suffer an injury during a season.
For the most part, an injury will result in you spending some time in the treatment room, followed by a period of rehab, before you are back playing in a matter of weeks.
But what happens if the injury is more severe than that?
For example, Cardiff Blues full-back Rhun Williams was only 22 when he was forced to announce his retirement from the game in 2020 due to a neck injury incurred two years before. Meanwhile, Wasps flanker Sam Jones was tipped for an England debut before an injury suffered in training ended his career at the age of 26.
A serious injury can be even more impactful at a lower level. In an article we recently published, you may have read about the financial challenges you may face if you are playing in the Championship, where a serious injury could easily affect your earnings capability in your chosen career outside rugby.
Welsh club player, Ashley Bishop, suffered such a serious injury while playing that he was unable to work in his primary job as an electrician for some months.
Quoted on Wales Online, Bishop revealed what he had said to his teammates after his injury was properly diagnosed:
“I told them all to get themselves sports insurance. So many lads play rugby week in week out without insurance, and for me it has been devastating […] We have been lucky in having lots of emotional support from friends and the rugby community. But I need to support my family and what happened has put a real strain on our finances. It is something other players need to be aware of.”
The RFU in England does provide a lump sum of up to £300,000 in the event of a catastrophic career-ending injury. However, there is no provision for loss of income, which you have to arrange yourself or through your club.
Protection can provide you with income in the event of being unable to work
In this instance, you may want to consider cover such as income protection.
The right type of income protection arrangement can cover you against unexpected events, so you are still able to meet your financial obligations.
A straightforward plan, for example, may pay you a regular income of up to two-thirds of your current earnings if you are unable to play due to an injury. This could be especially important if you suffer a career-ending injury that forces you to retire early.
Without this valuable protection in place, you may have to rely on savings, and eventually, expensive borrowing to cover your living expenses.
As you have read, a serious injury could happen at any time, and the financial effects could be serious, particularly if you are playing at Championship level and reliant on your external employment to provide the bulk of your income.
There are a range of different income protection options. We can help you choose the most appropriate cover for your circumstances.
Protecting your finances against the effect of a profoundly serious illness
It is not only serious injury sustained on the pitch that could curtail your career and threaten your earnings potential.
For example, you will likely be aware that former Leicester Tigers and Gloucester forward, Ed Slater was diagnosed with Motor Neurone Disease (MND) in 2022, and was forced to immediately retire from the game.
We have been proud to actively support fundraising efforts for Ed and his family, which as of December 2024 have raised nearly £400,000.
You could help protect yourself, and your loved ones, from the financial effects of a serious illness, such as MND, with critical illness cover. Other conditions that are commonly covered include heart attack, stroke, multiple sclerosis, and some forms of cancer.
In the event that you suffer from a critical illness listed on the policy, you will receive a tax-free lump sum. You can use this to help cover costs such as your mortgage, medical expenses, and ongoing household bills.
As with income protection, it is important to choose the right option for your circumstances, and expert advice is important.
Providing for your loved ones should the worst happen
As well as considering the financial effect of a serious injury, or a critical illness, you may also want to consider having life insurance to help protect your loved ones against financial hardship should the worst happen to you.
The amount you want to cover yourself for will clearly depend on your personal circumstances. However, at the very least, you will likely want to ensure that your family have enough to pay off any existing financial obligations, such as the amount owing on any mortgage you have, as well as provision for ongoing living expenses.
You might also want to think about providing an additional lump sum to help your loved ones get back on their feet, giving them one less thing to worry about, and providing some valuable financial breathing space.
An emergency fund can help protect you from short-term financial issues
Aside from putting appropriate protection in place, a simple step you can take that can help improve your financial resilience in the event of a long-term injury is to have a suitable fund of money set aside in case of emergency.
As a rule of thumb, it is prudent to have between three and six months of your net household income in a readily accessible savings account.
Having such a fund in place can provide you with the reassurance that, in the event of any sudden and unexpected financial shock such as a loss of income, you will be able to cover your immediate costs without having to resort to expensive borrowing.
Get in touch
If you would like to talk about how to protect yourself from the financial effects of a serious injury or illness, then please do get in touch with us at DBL Asset Management.
Email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
