As part of the reworked contract both sides agreed to last week, the 49ers purchased a $7.5 million insurance policy for Colin Kaepernick and added an easily attainable $1 million incentive, according to league sources.
The 49ers purchased a three-part, $500,000 insurance policy in which Kaepernick is the beneficiary, according to a league source. If Kaepernick is hurt to the point where he cannot play next season, he would collect $7.5 million tax-free, a figure close to what he would have collected in Year 2 of his original contract ($14.5 million before taxes).
The policy is part disability, part loss-of-value and part life insurance, but it covers Kaepernick in the event of an injury. It helps explain why Kaepernick would be willing to waive the remaining years on his contract and sign a two-year deal that he can void after this season, which he is expected to do. Now both sides are covered in the event Kaepernick suffers an injury that impacts next season. He still gets paid and the 49ers don’t have to count him against their salary cap.
The 49ers also enticed Kaepernick to sign the reworked contract with a playing-time incentive that is easy to reach. From this point in the season forward, if Kaepernick plays in 50 percent of the 49ers’ snaps, he will collect on the $1 million incentive.
Also, despite using a shaded visor during the week for practice, Kaepernick will continue changing it out on game day, following league rules. Players who want to wear a tinted visor, such as LaDainian Tomlinson did when he played, need appropriate medical documentation before approval is subsequently granted by the NFL.
The league denied Kaepernick’s and other 49ers’ requests to wear the visors before this season began.