Question, Who pays for a 10 Million dollar policy?

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Who pays the premium on a 10 Mill injury policy for a college athlete?

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Parents.

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And how do these policy's work?

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If the athlete has a catastrophic injury, then they receive the full payout. If they get an injury that has an adverse effect on their draft status, then I think they can get a % of the policy based on how far they drop.

That's why only Lloyd's of London underwrites them. But, if you think how many players get those policies and how few actually pay, the numbers work out.

I would guess that they can pay if after they graduate. The insurance companies want to sell this insurance, they are probably willing to loan them the premium with interest factored in.

A general idea, but don't quote me on this:

The "student-athlete" has to be approved by an NCAA committee. There has to be consensus among scouts/draft experts/professional sports admins that the athlete will, in fact, be drafted in the first two rounds (I think).

If the NCAA signs off on it, the athlete may borrow the money for the premium for the insurance policy.