Denver Broncos: Jake Butt cashes in on insurance policy

Before his senior year, Jake Butt took out an insurance policy in case he were injured and fell in the draft. Unfortunately, he had to cash in on that policy.

Jake Butt was pegged as one of the top tight ends in this year’s draft class before he suffered a horrible ACL injury in the Orange Bowl. The injury set him back quite a bit as he went from a potential early second-round pick to being the Broncos selection in the fifth round.

He had an incredible senior year at Michigan catching 46 receptions for 546 yards and four touchdowns in 12 games. He was presented the 2016 John Mackey Award, which is an honor that is presented to the most outstanding tight end in college football.

During the draft, Darren Rovell of ESPN reported that Butt had taken out an insurance policy before his senior season, covering any loss of value to his draft stock due to an injury. He took out a $2 million disability policy and a $2 million loss-of-value policy.

Butt started to receive dividends from the insurance policy in the middle of the third round. From there he was handsomely collecting $10,000 with each pick that comes off the board. His massive fall in the draft allowed him to receive $543,000.

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Even though he wasn’t selected as one of the top tight ends in the draft, he was able to get something in return to make up for his fall in the draft. The insurance money doesn’t fully pay for what he lost in value, which equates to about $2.8 million, but it’s still enough money to relieve some of the pain.

Butt is expected to be able to return from the ACL injury and play for the Broncos around September. Denver might have one of the biggest steals in the daft if he is able to return to full health and hit his maximum potential. Tight end was one of the team’s biggest needs heading into the draft and the team might have found their future starting tight end with just a fifth-round pick.

For Broncos fans, this news provides the notion that Butt is a player who is capable of making the appropriate decisions for himself. He’s able to think through all of the potential outcomes and act accordingly. By shelling out the money up front to pay for the insurance policy, Butt demonstrates that he values his future and has the ability to make decisions of such magnitude.

Insurance policies like this are very expensive and are almost impossible for college athletes to afford. By having the capital to be able to purchase such a lucrative policy, makes Butt a very fortunate person, which means he more than likely comes from solid family with an excellent support structure.

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For a fifth-round pick, there’s a lot of promise with Butt due to his talent. There’s a good chance the he becomes one of the top players in this draft class for the Broncos. He’s fundamentally sound and has the potential to contribute early in his career once he’s healed from the injury. Don’t be surprised if develops into one of the top tight ends in Denver Broncos history. If anything, he will be a solid option in the passing game for years to come.

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