Grade:8 Lesson 8

What is insurance and why is it essential?

SS.8.FL.6.1 Analyze the fact that personal financial risk exists when unexpected events can damage health, income, property, wealth, or future opportunities.

SS.8.FL.6.2 Identify insurance as a product that allows people to pay a fee (called a premium) now to transfer the costs of a potential loss to a third party.

SS.8.FL.6.1 Analyze the fact that personal financial risk exists when unexpected events can damage health, income, property, wealth, or future opportunities.

SS.8.FL.6.2 Identify insurance as a product that allows people to pay a fee (called a premium) now to transfer the costs of a potential loss to a third party.

Using Insurance Wisely

Lesson Number 8:

Correlated Florida Standards (See Full Text on Cover Page)

  • SS.8.FL.6.1
  • SS.8.FL.6.2

Essential Question

  • What is insurance and why is it essential?

Learning Goals/Objectives

  • Define insurance and assess its importance in managing risk.
  • Compare and contrast the different types of insurance.
  • Analyze the role of insurance in protecting savings and other financial assets.

Overview

In this lesson, students explore the various types of insurance coverages available and understand the advantages and disadvantages of paying to limit their exposure to financial risk in the face of incident, accident, injury, sickness or death.

Materials

  • “Talking About Risk” Video from Scholastic,
  • Tablets or computers
  • Promethean or Smart Board
  • Internet Access
  • Insurance: What You Should KnowPowerPoint Presentation
  • The Council for Economic Education’s EconEdLink Introductory Video on Insurance,

Time

  • 50 minutes

Activity Sequence

INTRODUCTION/HOOK

  • Introduce the concept of Risk by having students watch and discuss “Talking About Risk,” (5 minutes)

ACTIVITY

  1. Ask students to share what they know about insurance. Explain to them that insurance is used to help people manage risk by giving them “coverage” in exchange for a payment called a policy and that the idea of insurance goes back to ancient times. (5 minutes)
  1. Show and discuss the introductory video on Insurance from EconEdLink. minutes)
  1. Tell students that they will be investigating more information about different types of insurance. Break students into groups of five and have each student watch his/her assigned video using their tablet or computer. Suggested videos include:
  • Health insurance
  • Life insurance Esther Kim A mixed legacy
  • Auto
  • Disability insurance
  • Homeowner insurance

*Note: additional topics include renters and liability insurance

  1. After students watch the videos, have them share what they have learned with their small group.
  1. Have students create a list of questions they still have about insurance. (15 minutes for steps 3 – 5)
  1. Ask a volunteer from each group to share their questions with the class and discuss. Questions that need further research can be assigned as an optional home learning activity. (7 minutes)
  1. Show and discuss the Insurance: What You Should Know PowerPoint Presentation and review key concepts and types of insurance coverages. (8 minutes)

CLOSURE

  • As a class, discuss and answer the five question quiz at the end of the EconEdLink Insurance Video, minutes)

OPTIONAL EXTENSION SUGGESTION/HOME LEARNING

  • Students can do further research on the five major types of insurances and questions that needed further clarification.Students will research the answers and share during the next class.

Sources/Bibliographic Information that contributed to this lesson:

Texas Department of Insurance,INSURANCE820.ppt