Publication
Managing Risk
Objective
Students will be able to:
- Identify key types of insurance such as health, auto, homeowners, renter’s, life, and disability.
- Explain the costs and benefits of purchasing the key types of insurance.
Standard
Standard: 6
- Students will understand that: People are exposed to personal risks that can result in lost income, assets, health, life, or identity. They can choose to manage those risks by accepting, reducing, or transferring them to others. When people transfer risk by buying insurance, they pay money now in return for the insurer covering some or all financial losses that may occur in the future. Common types of insurance include health insurance, life insurance, and homeowner’s or renter’s insurance. The cost of insurance is related to the size of the potential loss, the likelihood that the loss event will happen, and the risk characteristics of the asset or person being insured. Identity theft is a growing concern for consumers and business. Stolen personal information can result in financial losses and fraudulent credit charges. The risk of identity theft can be minimized by carefully guarding personal financial information.
Concepts
In this personal finance lesson, students will understand the costs and benefits of the key types of insurance.
Book Info
This lesson is part of Financial Fitness for Life 9-12, 3rd Edition and provides the slides and activities with educational technology tools. For full access to the book, shop the teacher guide and student workbook below.
Teacher Guide |
Student Workbook |
Available in eBook and hard copy |
Available in eBook and hard copy |
Description
Most people are concerned about protecting the value of their assets, regardless of their income or socioeconomic background. One tool that is commonly used to help reduce the potential of financial loss is insurance. This lesson is designed to explain how insurance can be used to manage personal risk by explaining how insurance works and the various types that are available. Understanding the costs and benefits of insurance enables students to make better financial choices.