ANN ARBOR, Mich. — Michigan has agreed to pay a $2 million annual life insurance premium for Jim Harbaugh, effectively increasing the football coach's pay to $7 million a year.
In a contract addendum that went into effect June 3, Harbaugh is the owner of the policy, meaning he can take withdrawals or loans from the policy. He also picked the beneficiary.
Michigan will make the payment each year from 2016 through 2021 if Harbaugh is coaching the Wolverines on Dec. 6 of those years. Because an initial $2 million payment was made in June, and another payment is due in December, Harbaugh actually will earn $9 million this year.