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Michigan, Jim Harbaugh agree on $2 million contract addendum

Michigan coach Jim Harbaugh get compensated for the 2015 season with annual life insurance premium payment.

NCAA Football: Michigan State at Michigan Mike Carter-USA TODAY Sports

After going 10-3 in the 2015 season, Michigan coach Jim Harbaugh has agreed to an addendum to his initial contract on June 3, according to Nick Baumgardner of MLive. Harbaugh has signed for an extra $2 million per year to his initial base salary of $5 million per year.

The deal was signed by Michigan president Mark Schlissel and athletic director Warde Manuel on June 3.

The deal is listed as a life insurance policy. Michigan will pay a premium of $2 million per year to for the current contract, which is through December 2021. The date of the payment starts on December 6, 2016.

Since Harbaugh owns the policy, he can take out loans or withdraws. Once Harbaugh passes away, the university will be reimbursed.

With a $2 million signing bonus last year, Harbaugh made $7 million. That total ranked second on a national level behind Alabama head coach Nick Saban ($7.087 million).

In late 2014, Harbaugh signed a seven-year contract worth $40 million to coach the Wolverines.