re: 2016 Coaching Salary list is out

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very strange

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sounds like a whole life policy. i'm not an agent, but i plan for my family's future "in case I don't make it home one night" as the insurance guys like to say.

I believe you can, once it reaches a certain amount, pull out of the policy whatever dollar amount you've put in and the payout upon death is lessened by whatever amount you've yet to pay back. could be wrong though as i obviously haven't seen his policy.

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very strange

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Not strange at all. The insurance industry has been pushing plans like this, usually through variable life insurance policies (policies with floating death benefits dependent upon the results of investments within the policy) as a means of providing tax-free/reduced income tax benefits to highly compensated individuals.

Basically the only income tax implications Harbaugh would have from the $2,000,000 premium would be the actual cost of the insurance benefit and he would have almost no restrictions on the use of the balance of the $2,000,000 premium.

Example:

$20,000,000 death benefit of insurance policy
actual annual cost of insurance $150,000
annual premium paid $2,000,000

taxable income to Harbaugh = $150,000
use of $1,850,000 tax free (can be withdrawn or loan to self).

This is a huge income tax savings over taking the $2,000,000 straight out as compensation.

ETA: There are many coaching contracts that have a life insurance component, including the Les Miles contract with LSU/TAF.