Jake Butt made a very smart financial decision last year.
In December 2015, following a 48-catch, 620-yards regular season, the Michigan tight end announced he would return for his senior season.
"lf I wasn't in the top three rounds, I'd be coming back no question, it would have to be a top three deal for me to even consider it," Butt said one day before saying he'd return. "And what I've been kind of hearing a little bit is that I'd be in the top three rounds, which is why I'm considering it."
Prior to the 2016 season, Butt purchased a $4-million disability insurance policy and $2 million in loss-of-value insurance. The insurance provided a safety net if he were to suffer an injury that impacted his draft stock, which is exactly what happened in December's Orange Bowl when he tore his ACL.
If he fell below into the latter part of the third round of the 2017 NFL Draft, he would start collecting money. Therefore, when Butt had not been selected by the middle of Friday's third round, he began earning $10,000 per pick that he's not selected, giving him $150,000 entering Saturday, according to ESPN's Darren Rovell. Rovell also reported Butt has far surpassed the policy's premium of $25,000.
Insurance policies have become a common practice among college athletes, particularly those with pro potential. Notre Dame linebacker Jaylon Smith and South Carolina running back Marcus Lattimore have purchased similar policies in recent years.