How Jim Harbaugh’s Life Insurance Make Him One of the Highest-Paid College Football Coaches
Up until recently, Jim Harbaugh was the highest-paid college football coach. Now he’s top 3. But it’s not just because of his generous salary. The genius part is how his life insurance creates income at a level many times what Michigan is paying for it.
We’re going to dive into the mechanics behind this. Specifically, what they did if they were smart and how you can take advantage of the same principles.
Basic Mechanics & What We Know
We know Michigan is paying $2 million a year for seven years. It’s a $14 million loan to pay for Harbaugh’s life insurance.
We know that he will owe the IRS what they call an imputed loan interest by receiving that loan as a type of compensation. But that’s more on the tax side. We’re focusing on life insurance.
For employment incentive, life insurance is all very well and good. But for real incentives, we need something with living benefits. I’m not talking about a long-term care rider, but cash value.
Cash value is part of many permanent life insurance contracts. It builds over time as you pay your premiums. The type of life insurance determines how that cash value accumulates within the policy.
