From ESPN here:
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 made in Year 2 of his original contract ($14.5 million before taxes).
I didn’t know NFL teams took out insurance on their players that pays out to their players. I know pro teams take out insurance to protect the money they lay out for huge contracts.
I wouldn’t be surprised if there are more than a handful of white NFL players that want to take Kaepernick’s head off and call it an accident.