Lab Description
This lab includes several interactive activities to enhance student engagement and facilitate a deeper understanding of insurance concepts.
Students will participate in hands-on activities such as categorizing risks, calculating insurance premiums, and analyzing case studies. The lab is split into the following sections
- Basics of Insurance
- Auto Insurance
- Health & Life Insurance
- Renters and Homeowners Insurance
- Conclusion
The following are included in the lab:
- Interactive worksheets to categorize unexpected events
- Introduction to insurance and its need.
- Interactive worksheet that demonstrates two situations - with and without insurance
- How insurance companies are profitable and the concept of insurance pooling using interactive worksheets.
- Understanding coverage
- Auto insurance
- Introduction and basic coverage details such as collision, comprehensive etc.
- Interactive worksheet to compare and choose an insurance coverage
- Factors affecting the premium
- Worksheet activity to analyze the declaration page
- Renters Insurance
- Introduction, factors affecting the premium
- Sample renters insurance
- Homeowners Insurance
- Introduction
- Analyzing a sample policy
- Health Insurance
- Worksheet to analyze hospital expenses in USA
- Interactive worksheet to compare insurance plans
- Life Insurance
- Writing a letter to parents talking about the importance of various insurance
There are many other writing and analysis activities included in the lab.
Who this course is for
High school and college students
Student Feedbacks
We asked students, what you remember the most about the lab, and here are some of the responses
Basics of Insurance (78 Minutes)
This pre-survey activity gauges students' knowledge of various insurance concepts.
This is a quick start activity before getting introduced to the world of insurance. At the end of this activity, students will be able to understand that there are several risks in life, and each risk is associated with a cost.
Sub Activities
- Categorize Events
Students will read and and understand the purpose of insurance the concept of risk-sharing. Students will also understand the key terms - risk, premium, policy, coverage & claim.
Sub Activities
- Review Questions
Students will be given an overview of the next worksheet they are going to work on to help Alice and Bob calculate the financial benefits of having an insurance.
Sub Activities
- With and Without Insurance
Students will read the benefits of insurance such as Financial Protection, Peace of Mind, Risk Management, Health Care Coverage, etc.
Sub Activities
- Review Questions
- Unforeseen Incidents
Students read and understand with examples that having an insurance doesn't mean that every risk is covered, they need to carefully read the policy document to understand what is covered.
Sub Activities
- Travel Insurance Coverage Analysis
Students read and understand what premium, deductible and coverage means and how they are related.
Sub Activities
- Understanding the Relationship
Students will read and understand how insurance companies pool premiums from many people to payout the claims of a small percentage of people.
Sub Activities
- Review Questions
Students will be better equipped to comprehend how insurance companies operate, make informed financial decisions related to insurance coverage, and recognize the factors that contribute to an insurance company's profitability.
Students will read and understand that there are different types of insurances such as auto, health, life, disability, etc.
Sub Activities
- Review Questions
Auto Insurance (57 Minutes)
Students will read and understand what auto insurance is, how it protects their vehicle, and the fact that auto insurance can be customized according to their needs.
Sub Activities
- Review Questions
Students will read and understand different types of coverages in auto insurance such as liability coverage, collision coverage, yeah comprehensive coverage, etc. They would also understand the concept of a deductible.
Sub Activities
- Identify the Coverage
Sub Activities
- Choosing Your Car Insurance
Students will read and understand the different factors affecting premium such as driving record, age and experience, mileage, etc.
Sub Activities
- Review Questions
Students will express their preferences and reasoning regarding whether they would prioritize a higher premium for more protection or opt for less protection with a lower premium. Through this exercise, students will demonstrate critical thinking skills by considering the trade-offs between coverage and premiums in insurance decision-making.
Students will gain an understanding of how specific traffic violations, such as seat belt tickets, speeding tickets, DUIs, and reckless driving, can impact insurance premiums. The activity also encourages students to utilize Internet research skills to find credible information.
Students are prompted to analyze and evaluate the relationship between different types of tickets and their effects on insurance premiums. This involves critical thinking about risk assessment, driver behavior, and the insurance industry's practices and policies.
Through this worksheet, students will analyze the declaration page of an auto insurance policy, focusing on deductibles and other key terminologies related to auto insurance. By completing this activity, students will gain a comprehensive understanding of how deductibles and other policy details impact coverage and financial responsibilities in auto insurance. This is the declaration page that they will analyze -
Health & Life Insurance (47 Minutes)
Students will read the introduction to health insurance and understand that Health insurance is the key to accessing medical care and securing financial stability during health-related challenges.
By completing this worksheet, students will be able to analyze hospital expenses in the USA, gaining a deeper understanding of the significance of health insurance in managing healthcare costs.
Students will read and understand the key terminologies used in health insurance, such as deductible, copayments, coinsurance, out-of-pocket maximum, etc.
Sub Activities
- Understanding Insurance Policy Details
Students will read and understand what is usually covered under health insurance such as preventive care, doctor visits, inpatient care, etc.
Upon completing this worksheet, students will be able to compare two health insurance plans, discerning differences in premiums, deductibles, coinsurance, and other key features, thereby developing a clear understanding of how various plan elements impact coverage and cost. Here are the plan details that they will compare -
The learning objective of this activity is to help students identify, analyze, and understand the factors that influence health insurance premiums, enabling them to make informed decisions and develop critical thinking skills related to insurance coverage and cost management.
Students will read and understand the purpose of life insurance, and why is it important.
Sub Activities
- Review Questions
- Factors
Renters & Home Insurance (40 Minutes)
Students will read and understand what renters' insurance means, and the different types of coverage such as personal property coverage, liability coverage, etc.
Sub Activities
- Review Questions
Through this activity, students will estimate the value of their belongings, understand the need for renter's insurance, and make informed decisions about protecting their assets.
The learning objective of this activity is to enable students to comprehend the key terms, coverage details, and exclusions outlined in a renter's insurance policy, fostering knowledge and understanding of insurance policy documents, and promoting informed decision-making regarding insurance coverage options and protection for personal belongings. The policy to be analyzed is -
The objective of this activity is for students to understand the various factors that influence the cost of renters insurance premiums. By researching and identifying at least four key factors from the provided website, students will gain insights into how insurance companies assess risk and determine pricing for renters insurance. This activity aims to enhance their knowledge of the criteria used in the insurance industry and the importance of these factors in making informed decisions about renters insurance.
Students will read and understand what homeowner's insurance is for, and also different coverages such as dwelling coverage, liability coverage, medical payments coverage, etc.
Sub Activities
- Review Questions
Students will be given a sample homeowners insurance policy details, they have to analyze the policy and answer the given questions. Here is the policy -
The objective of this activity is for students to identify and understand a range of potential events, from minor incidents to major accidents, that could impact their home. By creatively thinking about various situations and considering how homeowners insurance might provide coverage, students will gain insights into the types of risks covered by insurance and the importance of having appropriate protection for their home.
Conclusion (17 Minutes)
The objective of this activity is for students to articulate the benefits of different types of insurance—auto, health, life, and homeowners—by writing a letter to their parents. Students will highlight the significance of each insurance type and explain how it contributes to the family's financial security and well-being. This activity aims to enhance students' understanding of the role of insurance in managing risk and protecting against unforeseen events, while also developing their ability to communicate these concepts effectively.
National Standards in Financial Education
Students will know that Financial loss can occur from unexpected events that damage health, wealth, income, property, and/or future opportunities .. Students will use this knowledge to 8-1a . Describe how an unexpected event that damages health or property can impact a family’s financial situation . 8-1b . Explain how advance planning can reduce the financial impact of an event that causes damage to personal property .
Students will know that Insurance is a financial product that allows people to pay a fee (premium) to transfer the cost of a potential financial loss to an insurance company .. Students will use this knowledge to 8-2a . Describe ways in which having insurance can protect a person from financial loss . 8-2b . Explain what might happen to people who cannot afford to buy insurance for a particular risk or who choose not to buy it .
Students will know that An insurance company creates a pool of funds from many policyholders’ premium payments and then uses these funds to compensate customers who experience a loss . People at higher risk for making a claim usually have to pay a higher premium .. Students will use this knowledge to 8-3a . Discuss how people use insurance to share the risk of financial loss . 8-3b . Explain why insurers commonly charge higher premiums to people who are higher risk (e .g . auto insurance for drivers with a bad accident record, flood insurance for houses on the coastline) .
Students will know that Four key insurance terms that contribute to out-of-pocket costs with an insurance policy are: premium, deductible, copayments, and co-insurance .. Students will use this knowledge to 8-4a . Describe how each of the following out-of-pocket insurance costs affects policyholders: premium, deductible, copayment, and coinsurance . 8-4b . Given information about premiums, deductibles, copayments, and coinsurance, calculate out-of-pocket costs for a hypothetical insured loss .
Students will know that People can choose to avoid, reduce, retain, or transfer risk through the purchase of insurance . Each option has different costs and benefits .. Students will use this knowledge to 8-5a . Give examples of how people manage the risk of financial loss through risk avoidance, reduction, retention, and transfer . 8-5b . Identify ways in which an automobile driver can avoid, reduce, or transfer the risk of being in a crash . 8-5c . Weigh the costs and benefits of buying cell phone insurance versus accepting the risk .
Students will know that People vary with respect to their willingness to accept risk and in how much they are willing to pay for insurance that will allow them to minimze future financial loss .. Students will use this knowledge to 12-1a . Discuss whether a premium paid to insure against a crash that never happens is wasted . 12-1b . Analyze the conditions under which it is appropriate for young adults to have life, health, and disability insurance .
Students will know that The decision to buy insurance depends on perceived risk exposure, the price of insurance coverage, and individual characteristics such as risk attitudes, age, occupation, lifestyle, and financial profile .. Students will use this knowledge to 12-2a . Identify individual characteristics that influence insurance purchase decisions . 12-2b . Recommend types of insurance needed by people with different characteristics .
Students will know that Some types of insurance coverage are mandatory .. Students will use this knowledge to 12-3a . Explain why homeowners’ insurance is required by a lender when a homeowner takes out a mortgage . 12-3b . Discuss why most states mandate auto liability coverage . 12-3c . Research the minimum auto liability insurance required in the state they live in and whether it is sufficient to cover typical auto accident financial losses .
Students will know that Health insurance provides coverage for medically necessary health care and may also cover some preventive care . It is sometimes offered as an employee benefit with the employer paying some or all of the premium cost .. Students will use this knowledge to 12-5a . Discuss the advantages of obtaining health insurance coverage through an employer plan versus buying private insurance or being uninsured . 12-5b . Compare the cost of health insurance to the potential financial consequences of not having health insurance . 12-5c . Estimate the effect on different health insurance deductibles and coinsurance rates on out-of-pocket medical costs .
Students will know that Disability insurance replaces income lost when a person is unable to earn their regular income due to injury or illness . In addition to privately purchased policies, some government programs provide disability protection .. Students will use this knowledge to 12-6a . Compare disability coverage offered by individual policies, employee benefit plans, Social Security, workers’ compensation, and temporary disability programs (in some states) . 12-6b . Assess the extent of financial risk and need for disability insurance using hypothetical disability scenarios .
Students will know that Auto, homeowner’s and renter’s insurance reimburse policyholders for financial losses to their covered property and the costs of legal liability for their damages to other people or property .. Students will use this knowledge to 12-7a . Explain the primary types of losses covered by auto, homeowner’s, and renter’s insurance policies . 12-7b . Describe situations where someone may be liable for injuries or damages to another person or their property . 12-7c . Identify factors that influence the cost of renter’s insurance and homeowners’ insurance .
Students will know that Life insurance provides funds for beneficiaries in the event of an insured person’s death . Policy proceeds are intended to replace the insured’s lost wages and/or to fund their dependents’ future financial needs .. Students will use this knowledge to 12-8a . Explain how a person’s death can result in financial losses to others . 12-8b . Discuss the benefits and costs of purchasing life insurance on the primary earners in a household .