Early this week, the San Francisco 49ers announced that they had restructured the contract of quarterback Colin Kaepernick, turning it into a two-year deal with a player option for the second year.
With the value of the contract staying the same for this year and $16.5 million for next year but with no guaranteed money, the restructured contract gives reassurance for both sides and guarantees the 28-year-old a chance to test the free agency if he pleases at the end of the season.
It was announced that part of the restructured contract would also include an insurance policy in case Kaepernick was unable to play next season, and the cost and pay out for that policy has been revealed by ESPN.
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Their report states: "The 49ers purchased a $7.5 million insurance policy for Colin Kaepernick and added an easily attainable $1 million incentive," with the policy being "a three-part, $500,000 insurance policy in which Kaepernick is the beneficiary."
It means the quarterback won't be left out to dry if he gets so badly hurt this year that he can't play the next. He will still be paid $7.5 million tax-free, and it also helps explain why he was so willing to sign the restructured contract which he can avoid at the end of the season.
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It also means 49ers won't have to pay him against their salary cap in such situation as well.
Another incentive to stay healthy included in this restructured contract is Kaepernick will receive another million if he is able to play 50% of the 49ers' snaps from this point of the season.
He will get his first start of the season when San Francisco plays against the Buffalo Bills this weekend.
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