This is hardly new, college football players have been able to do this for many years. Since the only likely purchasers of these policies have received full rides for their college the family likely has saved a lot of money on college costs, so they can likely afford it. If the athlete signs the contract they pay back the money; if they are hurt the premiums are repaid out of the disability claim.
I understand it is not new. One of the problems facing colleges in keeping elite athletes, is the enormous amount of money offered by the NFL. It would take a huge policy to keep them.