 -- Former Notre Dame linebacker Jaylon Smith took out an insurance policy in the fall that would pay him $5 million if he got hurt and could never play again or up to $5 million if he got hurt and slipped in the 2016 NFL draft.

A source with knowledge of the policy said Smith will receive $700,000 if he falls out of the first round and gets picked as the top pick in the second round. If he doesn't, he'll collect an additional $100,000 for each spot he falls.

Smith would set a loss-of-value record of $3.1 million if he fell to the 55th overall pick.

Smith would be able to collect up to the full $5 million, which is tax free because he paid for his own policy with taxed money, and still play.

If he didn't fall far enough to collect the full $5 million, Smith would be able to get the difference, up to $5 million, if he could never play again. Under the policy, Smith would get four regular-season games to try to play before he would have to make the call as to whether he felt he was fit to continue.

Insurers who cover these players rely on the players wanting to play.

Last year, Oregon's Ifo Ekpre-Olomu collected his full $3 million in loss-of-value insurance. A projected first-round draft pick, Olomu fell to the seventh round after sustaining a knee injury. It was the largest loss-of-value policy ever collected.

Smith could collect more than that if he slips into the bottom half of the second round.