Insuring Your Financial Future
Created By:
ActiveLearningLabs
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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.
Student Feedback
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing 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 .
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing Risk
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) .
Econ Ed -
Managing Risk
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 .
Econ Ed -
Managing Risk
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 .
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