Michigan Football: Wolverines increase Jim Harbaugh's salary by $2 million

Jim Harbaugh is heading into his second season at Michigan with high hopes for the Wolverines and a big raise to boot.

The university announced Wednesday that it increased Harbaugh's annual compensation by $2 million to $7 million in the form of an addendum signed June 3.

The $2 million will go to a life insurance policy, with the first installment payable on June 3 and second on Dec. 6. The annual premium runs through 2021.

All the money paid toward life-insurance premiums will be repaid to the university upon Harbaugh's death, without interest. If the policy is canceled or surrendered during Harbaugh's lifetime, the premiums also would need to be repaid to the school.

Harbaugh can designate the policy's beneficiaries and can borrow against it or take withdrawals from it.

The Wolverines finished 10-3 in Harbaugh's first season at his alma mater, beating Florida 41-7 in the Citrus Bowl.

He is in the second year of a seven-year contract signed in late 2014.

Harbaugh's base salary is $500,000 and he is awarded $4.5 million in additional compensation from appearances, radio interviews and apparel contracts.

Harbaugh, 52, was the second-highest paid coach in college football last year.