Students read about how insurance works and then review a case study to see how insurance choices can affect personal finances for a young adult in a rural area.
Protect (Managing risk, Using insurance)
CTE (Career and technical education), Math, Physical education or health, Social studies or history
High school (9-10), High school (11-12)
45-60 minutes
Big idea
When you purchase insurance, you are transferring financial risk from yourself to an insurance company.
Essential questions
- What is the main benefit of choosing to purchase insurance?
- How do the insurance company and the policyholder share risks and costs?
Objectives
- Understand how insurance works
- Apply insurance policy specifics to a case study to evaluate costs and benefits
What students will do
- Read about how the insurance process works and discover what roles the insurance company and the policyholders play.
- Review information about specific types of insurance policy coverage and costs.
- Evaluate a case study to see how one policyholder’s insurance choices affected her financially.
- Write an advice email about the value of insurance in that policyholder’s life.
Download activity
Teacher guide
cfpb_building_block_activities_understanding-how-insurance-works-lucy_guide.pdf
Student materials
cfpb_building_block_activities_understanding-how-insurance-works-lucy_worksheet.pdf
cfpb_building_block_activities_what-is-insurance_handout.pdf
Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.
