Jim Harbaugh's salary increased to $7 mil through 2021

Michigan coach Jim Harbaugh signed an addendum to his initial contract on June 3 that provides an additional $2 million per year to his initial salary of $5 million.

The $2 million will be allocated in the form of a life insurance premium that Harbaugh owns. He can withdraw or take out a loan from the policy as he pleases.

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The school will contribute to the policy yearly through December 2021, but will get its money back, without interest, with Harbaugh dies.

Harbaugh can determine a beneficiary of the policy. The school will get the death benefit in the amount it contributed and the beneficiary will get the remaining balance.

Harbaugh, who is in the second year of a seven-year contract, earns a base salary of $500,000 and then earns an additional $4.5 million in compensation for radio, TV appearances and apparel contracts. He does not earn extra income for his Twitter rants and spats.

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Harbaugh did not get a retroactive $2 million in life insurance for his first season, but he did earn a $2 million signing bonus. Harbaugh’s $7 million annual contract ranked second among coaches in 2015, trailing only Alabama’s Nick Saban, who earned $7.087 million.

For more Michigan news, visit TheWolverine.com.

Graham Watson is the editor of Dr. Saturday on Yahoo Sports. Have a tip? Email her at dr.saturday@ymail.com or follow her on Twitter! Follow @YahooDrSaturday