That's life insurance based on actuarial tables predicting that the company will make money before you die. The likelihood of a running back blowing an ACL is much higher
McGahee's policy didn't pay out. Those policies are for injuries that totally prevent you from playing. McGahee played a few years in the NFL. Those policies are generally a waste and I'm fairly certain none have ever paid out. https://en.wikipedia.org/wiki/Willis_McGahee#College_career
I thought I read somewhere that the Louisville basketball player's paid out but it may have been the policy the school is allowed to pay into that covers healthcare expenses.