With and Without Insurance - The Need for Home Insurance
- Price per ClassroomFREE
- Grade Levels 7, 8, 9, 10
- Topics Insurance
- Duration 15 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
Activity Description
In this engaging and informative worksheet, students will learn about the importance of insurance through a detailed simulation involving two homeowners, Alice and Bob. Alice has home insurance, while Bob does not. Over a simulated period of 10 years, students will uncover a series of events that impact the houses of both Alice and Bob.
Objectives:
Simulate Real-Life Scenarios: Through a 10-year simulation, students will witness various events affecting the homes of Alice and Bob, such as natural disasters, accidents, and other unforeseen damages.
Cost Analysis: Students will calculate the costs incurred by both homeowners, comparing the insurance premiums paid by Alice with the out-of-pocket expenses paid by Bob for damages.
Evaluate Financial Impact: By the end of the worksheet, students will understand how insurance helped Alice avoid substantial financial losses, while Bob had to bear significant costs for repairs and damages.
Learning Objective
This simulation-based activity is designed to help students grasp the significance of insurance in financial planning and risk management. By simulating various life events over a span of ten years for two individuals, one with insurance coverage and another without, students will gain insights into how insurance can provide financial protection and security during unexpected circumstances.
Teacher Tips
- Price per ClassroomFREE
- Grade Levels 7, 8, 9, 10
- Topics Insurance
- Duration 15 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
National Standards in Personal Financial Education
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 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 Insurance fraud is a crime that encompasses illegal actions by the buyer (e .g ., falsified claims) or seller (e .g ., representing non-existent companies) of an insurance contract .. Students will use this knowledge to 12-10a . Provide examples of insurance fraud . 12-10b . Investigate the legal consequence for individuals who are convicted of insurance fraud .