Module Target Learning Outcome

Transcription

1 OVERVIEW: LEARNING OUTCOMES AND ACTIVITIES Module 6: Insurance Module Target Learning Outcome Protect personal property and financial resources. Lesson 6-1 Manage Risk Target Competencies and Supporting Objectives Activities Pages Justify reasons to be insured. Discuss ways that teens face risks that can be costly. Give examples of ways that teens can manage the risk of financial loss. Describe consequences of not being sufficiently insured. Task: Global Consequences Activity 6.1: Teens at Risk Assessment Challenge 6-A: Case for Insurance Taking it Home: Survey Insurance Coverage How Insurance Works Investigate how insurance works. Describe how to get insurance coverage (application, premiums). Give examples of information provided in an insurance policy. Describe how to file a claim. Summarize the rights and responsibilities of an insurance policyholder. Activity 6.2: Read the Fine Print Activity 6.3: From Memory Assessment Challenge 6-B: Taking an Inventory Taking it Home: Compare Current Value and Replacement Costs Selecting Insurance Choose insurance for specific needs and situations. Give examples of types of insurance. Identify types of insurance coverage that are relevant for teens and young adults. Discuss how insurance needs and costs differ depending on personal situation. Note Taking Guide: Insurance Study Check Quiz: What Insurance Covers That? Assessment Challenge 6-C: Cellphone Insurance? YOU Decide! Taking it Home: Study an Active Policy Taking it Home: Create Emergency Kit National Endowment for Financial Education Overview: Outcomes and Activities High School Financial Planning Program June 2014 Module 6: Insurance

2 OVERVIEW: LEARNING OUTCOMES AND ACTIVITIES Module 6: Insurance Introduction to Lessons Lesson 6-1: Manage Risk Everyone thinks the odds of something bad happening are small until something bad happens. Accidents and disasters can be frightening as well as have a negative impact your financial situation. It s not just a matter of chance, either. Actions and choices you re making right now will affect your ability to deal with the unexpected costs when something unfortunate occurs. In this lesson, students learn about strategies to protect their health, money, and property to minimize the potential for financial difficulties. Lesson 6-2: How-Insurance-Works Do you know what to do if your cellphone, car, bike, or other personal property is stolen, lost, or damaged? Would you be able to pay to replace or repair the item? Is the item covered by insurance? Before you can be a savvy insurance consumer, you need to crack the code on a few common terms and how insurance works. This will help you when deciding what type of insurance you need or if you need to collect insurance payments. When you are ready to talk to an insurance company representative, you will be prepared to answer and ask questions with confidence. In this lesson, students prepare to apply for insurance or to file a claim. Lesson 6-3: Selecting Insurance You have many life changes ahead of you. Along the way you re going to need different kinds of insurance protection for yourself, your loved ones, and your property. Maybe you don t have to worry about buying your own insurance right now because your family has insurance that covers you. But soon you will Taking on the responsibilities to purchase your own insurance. Do you know about the various types of insurance that are available (and in some cases required) to share the risk of financial hardship due to unfortunate events? In this lesson, students learn about common types of insurance to select insurance for specific circumstances National Endowment for Financial Education Overview: Outcomes and Activities High School Financial Planning Program June 2014 Module 6: Insurance

3 TEACHER LESSON PLAN Lesson 6-1: Manage Risk OVERVIEW Everyone thinks the odds of something bad happening are small until something bad happens. Accidents and disasters can be frightening as well as have a negative impact your financial situation. It s not just a matter of chance, either. Actions and choices you re making right now will affect your ability to deal with the unexpected costs when something unfortunate occurs. In this lesson you will learn about strategies to protect your health, money, and property to minimize the potential for financial difficulties. LEARNING OUTCOMES In this lesson students justify reasons to be insured. Along the way they will do the following: Discuss ways that teens face risks which can lead to costly consequences. Give examples of ways that teens can manage the risk of financial loss. Describe potential consequences of not being sufficiently insured. Students will use what they learn to inform others about reasons to be insured. PREPARATION Order a Module 6 Student Guide for each student. (The Guide is also available online to download.) Preview the lesson PowerPoint presentation, learning tasks, and the Module 6 Student Guide, particularly pages Print or download the Student Learning Plan for this lesson so each student has a copy. Gather ideas for Learning Task 2. Create a list of recent disasters that have occurred in the community or country. WHAT YOU WILL NEED Module 6 Student Guide (pages 3-11) PowerPoint Presentation 6-1 Student Learning Plan 6-1 Activity 6.1: Teens at Risk Task: Global Consequences Challenge 6-A: Case for Insurance Internet access NOTES: Approximate time: 45 minutes (minimum) - 90 minutes (with extension activities) Resources: National Association of Insurance Commissioners, naic.org/index_consumer.htm (Consumer Guides, InsureUonline.org, link to state insurance departments) Insurance Information Institute: (insurance statistics, glossary) BeAnActuary.org, sponsored by the Society of Actuaries and the Casualty Actuarial Society (actuary careers, training, employment) 2014 National Endowment for Financial Education Lesson 6-1: Manage Risk High School Financial Planning Program 1 June 2014

4 TEACHER LESSON PLAN Lesson 6-1: Manage Risk Learning Tasks Teaching Notes Materials 1. You ve read about Katie, a forward on her high school soccer team who has a torn ligament in her knee. What are the common types of injuries in your community? Research the most common injuries for a sport that is popular in your school or community. 2. Find out how the unexpected can come with a big price tag by researching the costs to repair or replace property. PROCEDURE TIME ESTIMATE: 5-10 minutes [Slide 2] Brainstorm a list of the five most popular sports in the school and community. Include in the list both contact and noncontact sports as well as cheerleading if applicable. Divide the class into five groups, assigning one sport to each group. Have each group perform an Internet search of the three most frequent injuries for their assigned high school sport. (If they are having trouble finding information on high school sports data, have them widen the search to professional sports.) The easiest method for this search is to perform a Google search using the phrase most frequent high school [type of sport] injuries, and Google will compile data from a variety of sites to list injuries common to that sport. If Internet is not available, have the students generate a list from their observations and experiences. Have the class compare documented injuries and decide on the one most common type of injury across sports. Survey the class to identify who might have suffered any of the mentioned injuries. EXTENSION (now or after Learning Task #2): Have students research the average medical costs to repair or recuperate from the injuries that were identified in the previous activity. [Slide 3] Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to explain to others the benefits of being adequately insured. [Slide 4] Introduce Aaron and Katie as the young people featured in the Student Guide. The students will follow Aaron (Grade 12) and Katie (Grade 9) as they learn about protecting their health, money, and property. PROCEDURE TIME: minutes [Question, Student Guide] Ask students to recall a situation when they or a family member had property damaged, were in an accident, or were a victim of theft. Without sharing actual dollar amounts, select one or two situations to facilitate a discussion about the types of unexpected costs and other inconveniences that resulted from the situation(s). Point out how unexpected events can put a strain on an individual s or family s spending plan. Also identify inconveniences that might not have indirect monetary impact such as needing alternative transportation until a damaged car is repaired or taking time off work to get to injury therapy appointments. Module 6 Student Guide Student Learning Plan STUDENT GUIDE Pages 3-4 SLIDES 2 The Painful Side of Sports 3 Preview 4 Meet Aaron and Katie ACTIVITY Internet access STUDENT GUIDE Pages 4 SLIDE 5 Disasters: Destructive and Expensive ACTIVITY Internet access Details about recent disasters 2014 National Endowment for Financial Education Lesson 6-1: Manage Risk High School Financial Planning Program 2 June 2014

5 TEACHER LESSON PLAN Lesson 6-1: Manage Risk Learning Tasks Teaching Notes Materials Either in advance of class or as a whole class, identify several expensive insurance loss events in United States (or local state or community) in recent history. Arrange for students to work in small groups to gather information about these events. [Slide 5] Guide each group to document and share the following for each event: nature of the event and the date area that was affected estimated total losses in dollars information source ALTERNATIVE: Assign specific types of disasters or events to each group, such as: tornados, hurricanes, extreme winter weather, drought, fire, flood, theft, etc. The most common types of disasters will depend on your particular region or state. EXTENSION: Expand to a global search for the most expensive insurance losses in the world, and talk about the losses both in terms of human lives as well as financial losses. You can also have students search for the most expensive insurance losses in your state in recent history. Use this list to discuss types of insurance that would most benefit local residents. 3. Identify four ways to manage your risk of financial loss. Complete Activity 6.1: Teens at Risk to recommend risk management strategies. PROCEDURE TIME: minutes [Slide 6] As you transition into the next task, share statistics about financial losses. Ask students to brainstorm ideas on how to cover the unexpected costs of property damage, property loss, injuries, disasters, or illnesses. Specifically ask them how they would cover the costs for something in their possession that was stolen, lost, or damaged, such as a cellphone, friend s bike that was borrowed, a school-owned tablet/laptop, or the car used for driver s education. [Slide 7, Student Guide page 6] Point out four ways that individuals and businesses can deal with risks that have the potential for unexpected costs: Avoid taking on the risk Reduce the possibility of risk Accept the consequences of any risk Share the risk by pooling financial resources to recover costs Arrange for the students to study the samples in Figure 6.1 [Student Guide, page 6]. Either in pairs or as a whole class, have the students respond to the question about the option(s) they would choose and why. STUDENT GUIDE Pages 6-8 SLIDES 6 What are the Average Costs? 7 4 Ways to Manage Risk ACTIVITY Activity 6.1: Teens at Risk 2014 National Endowment for Financial Education Lesson 6-1: Manage Risk High School Financial Planning Program 3 June 2014

6 TEACHER LESSON PLAN Lesson 6-1: Manage Risk Learning Tasks Teaching Notes Materials To illustrate the concept of sharing the financial burden due to an unexpected loss, facilitate an activity to survey the costs of a particular type of incident that several students have experienced. (Note: This is a simplistic example to illustrate the concept of insurance. Insurance providers use additional types of statistics and more complex formulas to establish insurance costs and payouts.) 1. As a whole class, determine the number of students in the room who wear glasses or contact lenses (A). 2. Estimate the average cost to replace a pair of glasses or a set of contacts if lost or damaged (B). 3. Survey the number of times anyone in class has lost or damaged a pair of glasses or a contact in the past 12 months (C). 4. Multiply the average replacement cost (B) times the number of loss incidents (C) that occurred over the past 12 months. Use this number to represent the total monetary loss that will potentially occur in the next 12 months (D). 5. Divide this total estimated loss amount (D) by the total number of students (A) who wear corrective lenses to estimate how much each person might be responsible to pay (aka premium) into a shared fund (aka insurance). A student who loses his/her glasses next week might not have the full amount (B) on hand to immediately buy new glasses. However, if s/he had contributed to the shared fund, s/he could request to receive money from the fund (aka payout) to buy new glasses. Debrief by asking if students to comment on whether or not the shared concept is fair. Facilitate a discussion about the fairness of pooling funds when some insured individuals might make multiple insurance claims while others might never have needed to make a claim. Explain that deductibles are applied as a way for insured people to take on some responsibility to cover financial losses before the insurance pays out on a claim. Read page 7 in the Student Guide for an additional explanation about insurance. ALTERNATIVE: After demonstrating how insurance is used to share the financial burden of a loss, divide the class into groups so each group calculates the odds of an incident and the average premium to be paid if the class were to offer insurance to cover claims for specific types of incidents such as any of the following: Lost or damaged cellphone, retainer, bike, or Injury Automobile or motorcycle accident 2014 National Endowment for Financial Education Lesson 6-1: Manage Risk High School Financial Planning Program 4 June 2014

7 TEACHER LESSON PLAN Lesson 6-1: Manage Risk Learning Tasks Teaching Notes Materials Prepare students to complete Activity 6.1: Teens at Risk, either individually or with partner. Review the four ways to minimize risk to point out that insurance coverage is not the only way to minimize risk. Provide an example of how a person might combine strategies such as sharing risk by buying homeowner s insurance that requires the insured to pay a deductible before the insurance company covers fire damage expenses and reducing the risk of loss by proactively taking steps to reduce the potential for fire damage (i.e. installing fire alarms and a sprinkler system, or living in a brick house with a Class A metal roof). As time allows, ask students to share responses. EXTENSION: Assign students to research ways they can minimize the risk of financial loss due to sport-related injuries, either in general or for a specific type of activity (i.e. skateboarding, skiing, running, biking, hockey, cheerleading, golf, basketball, surfing, etc.) 4. Imagine a world without insurance. Describe at least five changes to our lives and society without a particular type of insurance. REFLECTION List ways you can avoid or reduce risk in your daily routine. PROCEDURE TIME: 15 minutes Divide the class into five small groups and assign one of the following topics to a group: Health care (health insurance) Housing (home insurance, renter s insurance) Employment (unemployment insurance, disability insurance) Businesses/Commerce (property insurance, general liability) Transportation (auto/motorcycle insurance) Tell students that in their groups, they will predict what a world without insurance might look like, focusing on the specific topic assigned. For example, what would our health care system look like if there were no health insurance? How would that impact families? It would help if students had a better understanding of the type of insurance(s) that cover their assigned topic. If students need assistance with this assignment, allow them to use their Student Guide (pages 16, 19, 21) and the Internet to define their insurance topic before addressing the questions. Distribute at least one copy of the Global Consequences Task to each group. Have each team generate at least five different descriptive consequences that would describe their world without their assigned type of insurance. The questions provided are meant to help guide group work. Arrange for each group to present the imagined world to the rest of the class. Note: An example is provided on the Task handout. PROCEDURE In- class or out-of-class assignment [Slide 9] Ask the students to think about their daily routines and misfortune that could happen throughout the day. Have them list at least two actions they can take to reduce the potential for risks. STUDENT GUIDE Page 11 SLIDE 8 We All Feel the Impact ACTIVITY Task: Global Consequences SLIDE 9 Reflection 2014 National Endowment for Financial Education Lesson 6-1: Manage Risk High School Financial Planning Program 5 June 2014

8 TEACHER LESSON PLAN Lesson 6-1: Manage Risk Learning Tasks Teaching Notes Materials 5. Complete Challenge 6-A: A Case for Insurance. Create an ad to convince your peers of the value of using insurance. Your ad should include other risk management strategies to minimize unexpected costs due to misfortune. TAKING IT HOME Find out what types of insurance your family has. FURTHER STUDY Learn more about the number ninjas referenced in the Student Guide. PROCEDURE In- class or out-of-class assignment [Slide 10] Schedule time for the students to complete Challenge 6-A: A Case for Insurance. Either independently or in small groups, challenge the students to create a persuasive advertisement to convince their peers to become insured and reduce risk. Groups need to decide on the most appropriate approach for their ads: radio ad, skit, television commercial, infomercial or music video formats. Ads should be roughly 30 second in length. As time allows now or in a later class session, arrange for students to share or perform their ads with the whole class. PROCEDURE In- class or out-of-class assignment Encourage the students to find out if their families have any of the following types of insurance: homeowners, renters, health, life, flood, auto, motorcycle, ATV, RV, liability, pet, or cellphone. Note: This potentially may be a sensitive topic among families. Use discretion about requiring this task or asking students to report findings. PROCEDURE In- class or out-of-class assignment Consider partnering with a math teacher to invite an actuary to talk to the students about the statistical nature of determining risk in the insurance industry. Request that the guest feature examples that relate to teens or the local community and share career information. RESOURCES: Contact a local insurance agency to invite any actuary on staff to meet in person or via video conferencing with the students. Other sources: Society of Actuaries (SOA), an organization for actuaries working in life and health insurance, employee benefits, and pensions; or the Casualty Actuarial Society (CAS), the organization for actuaries working in automobile, fire, and liability insurance and workers' compensation. STUDENT GUIDE Page 11 SLIDE 10 Challenge ACTIVITY Task: The Need for Insurance TAKING IT HOME Find out if your family has any of the following types of insurance: homeowners, renters, health, life, flood, auto, motorcycle, ATV, RV, liability, pet, or cellphone. REFLECTION What risks do you face on a daily basis? Think about your daily routines, and list at least two actions you can take to avoid or reduce any risk in your daily routine. FURTHER STUDY If you like math and statistics, learn more about the number ninjas referenced in the Student Guide. Go to BeAnActuary.org to find out what an actuary does and what it takes to get a job in this career National Endowment for Financial Education Lesson 6-1: Manage Risk High School Financial Planning Program 6 June 2014

9 High School Financial Planning Program Lesson 6-1: Manage Risk 2014 National Endowment for Financial Education 0

10 High School Financial Planning Program Lesson 6-1: Manage Risk Display this slide as you begin the lesson National Endowment for Financial Education 1

11 High School Financial Planning Program Lesson 6-1: Manage Risk Brainstorm a list of the five most popular sports in the school and community. Include in the list both contact and non-contact sports as well as cheerleading if applicable. Divide the class into five groups, assigning one sport to each group. Have each group perform an Internet search of the three most frequent injuries for their assigned high school sport. (If they are having trouble finding information on high school sports data, have them widen the search to professional sports.) The easiest method for this search is to perform a Google search using the phrase most frequent high school [type of sport] injuries, and Google will compile data from a variety of sites to list injuries common to that sport. If Internet is not available, have the students generate a list from their observations and experiences. Have the class compare documented injuries and decide on the one most common type of injury across sports. Survey the class to identify who might have suffered any of the mentioned injuries. EXTENSION (now or after Learning Task #2): Have students research the average medical costs to repair or recuperate from the injuries that were identified in the previous activity National Endowment for Financial Education 2

12 High School Financial Planning Program Lesson 6-1: Manage Risk Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to explain to others the benefits of being adequately insured National Endowment for Financial Education 3

13 High School Financial Planning Program Lesson 6-1: Manage Risk Student Guide, pages 3-4 Introduce Aaron and Katie as the young people featured in the Student Guide. The students will follow Aaron (Grade 12) and Katie (Grade 9) as they learn about protecting their health, money, and property National Endowment for Financial Education 4

14 High School Financial Planning Program Lesson 6-1: Manage Risk Student Guide, page 4 (question) Ask students to recall a situation when they or a family member had property damaged, were in an accident, or were a victim of theft. Without sharing actual dollar amounts, select one or two situations to facilitate a discussion about the types of unexpected costs and other inconveniences that resulted from the situation(s). Point out how unexpected events can put a strain on an individual s or family s spending plan. Also identify inconveniences that might not have indirect monetary impact such as needing alternative transportation until a damaged car is repaired or taking unpaid time off work to get to injury therapy appointments. Either in advance of class or as a whole class, identify several expensive insurance loss events in United States (or local state or community) in recent history. Arrange for students to work in small groups to gather information about these events. Guide each group to document and share the following for each event: - nature of the event and the date - area was affected - estimated total losses in dollars - information source ALTERNATIVE: Assign specific types of disasters or events to each group, such as: tornados, hurricanes, extreme winter weather, drought, fire, flood, theft, etc. The most common types of disasters will depend on your particular region or state. EXTENSION: Expand to a global search for the most expensive insurance losses in the world, and talk about the losses both in terms of human lives as well as financial losses. You can also have students search for the most expensive insurance losses in your state in recent history. Use this list to discuss types of insurance that would most benefit local residents National Endowment for Financial Education 5

15 High School Financial Planning Program Lesson 6-1: Manage Risk As you transition into the next task, share statistics about financial losses. Ask students to brainstorm ideas on how to cover the unexpected costs of property damage, property loss, injuries, disasters, or illnesses. Specifically ask them how they would cover the costs for something in their possession that was stolen, lost, or damaged, such as a cellphone, friend s bike that was borrowed, a school-owned tablet/laptop, or the car used for driver s education National Endowment for Financial Education 6

16 High School Financial Planning Program Lesson 6-1: Manage Risk Student Guide page 6 Point out four ways that individuals and businesses can deal with risks that have the potential for unexpected costs: - Avoid taking on the risk. - Reduce the possibility of risk. - Accept the consequences of any risk. - Share the risk by pooling financial resources to recover costs. Arrange for the students to study the samples in Figure 6.1. Either in pairs or as a whole class, have the students respond to the question about the option(s) they would choose and why. To illustrate the concept of sharing the financial burden due to an unexpected loss, facilitate an activity to survey the costs of a particular type of incident that several students have experienced. (The activity details and an alternative activity are outlined in the Teacher Lesson Plan, page 4.) Debrief by asking if students to comment on whether or not the shared concept is fair. Facilitate a discussion about the fairness of pooling funds when some insured individuals might make multiple insurance claims while others might never have needed to make a claim. Explain that deductibles are applied as a way for insured people to take on some responsibility to cover financial losses before the insurance pays out on a claim. Read page 7 in the Student Guide for an additional explanation about insurance. Prepare students to complete Activity 6.1: Teens at Risk, either individually or with partner. Review the four ways to minimize risk to point out that insurance coverage is not the only way to minimize risk. Provide an example of how a person might combine strategies such as sharing risk by buying homeowner insurance that requires the insured to pay a deductible before the insurance company covers fire damage expenses and reducing the risk of loss by proactively taking steps to reduce the potential for fire damage (i.e. installing fire alarms, installing a sprinkler system, or living in a brick house with a Class A metal roof). As time allows, arrange for some or all students to share responses National Endowment for Financial Education 7

17 High School Financial Planning Program Lesson 6-1: Manage Risk Divide the class into five small groups and assign one of the following topics to a group: - Health care (health insurance) - Housing (home insurance, renter s insurance) - Employment (unemployment insurance, disability insurance) - Businesses/Commerce (property insurance, general liability) - Transportation (auto/motorcycle insurance) Tell students that in their groups they will predict what a world without insurance might look like, focusing on the specific topic assigned. For example, what would our health care system look like if there were no health insurance? How would that impact families? It would help if students had a better understanding of the type of insurance(s) that cover their assigned topic. If students need assistance with this assignment, allow them to use their Student Guide (pages 16, 19, 21) and the Internet to define their insurance topic before addressing the questions. Distribute at least one copy of the Global Consequences Task to each group. Have each team generate at least five different descriptive consequences that would describe their world without their assigned type of insurance. The questions provided are meant to help guide group work. Arrange for each group to present the imagined world to the rest of the class. Note: An example is provided on the Task handout National Endowment for Financial Education 8

18 High School Financial Planning Program Lesson 6-1: Manage Risk Ask the students to think about their daily routines and misfortune that could happen throughout the day. Have them list at least two actions they can take to reduce the potential for risks National Endowment for Financial Education 9

19 High School Financial Planning Program Lesson 6-1: Manage Risk Student Guide, page 11 Schedule time for the students to complete Challenge 6-A: A Case for Insurance. Either independently or in small groups, challenge the students to create a persuasive advertisement to convince their peers to become insured and reduce risk. Groups need to decide on the most appropriate approach for their ads: radio ad, skit, television commercial, infomercial or music video formats. Ads should be roughly 30 seconds in length. As time allows now or in a later class session, arrange for students to share or perform their ads with the whole class National Endowment for Financial Education 10

20 High School Financial Planning Program Lesson 6-1: Manage Risk 2014 National Endowment for Financial Education 11

21 STUDENT LEARNING PLAN Lesson 6-1: Manage Risk OVERVIEW Everyone thinks the odds of something bad happening are small until something bad happens. Accidents and disasters can be frightening as well as have a negative impact your financial situation. It s not just a matter of chance, either. Actions and choices you re making right now will affect your ability to deal with the unexpected costs when something unfortunate occurs. In this lesson you will learn about strategies to protect your health, money, and property to minimize the potential for financial difficulties. LEARNING OUTCOMES In this lesson you will justify reasons to be insured. Along the way you will: Discuss ways that teens face risks which can lead to costly consequences. Give examples of ways that teens can manage the risk of financial loss. Describe the potential consequences of not being sufficiently insured. Use what you learn today to inform others about reasons to be insured LEARNING TASKS These tasks match pages 3-11 in Student Guide 6. You ve read about Katie, a forward on her high school soccer team who has a torn ligament in her knee. What are the common types of injuries in your community? Research the most common injuries for a sport that is popular in your school or community. Find out how the unexpected can come with a big price tag by researching the costs to repair or replace property. Identify four ways to manage your risk of financial loss. Complete Activity 6.1: Teens at Risk to recommend risk management strategies. Imagine a world without insurance. Describe at least five changes to our lives and society without a particular type of insurance. Complete Challenge 6-A: Case for Insurance. Create an ad to convince your peers of the value of using insurance. Include other risk management strategies to minimize unexpected costs due to misfortune. REFLECTION What risks do you face on a daily basis? Think about your daily routines, and list at least two actions you can take to avoid or reduce any risk in your daily routine. TAKING IT HOME Find out if your family has any of the following types of insurance: homeowners, renters, health, life, flood, auto, motorcycle, ATV, RV, liability, pet, or cellphone. FURTHER STUDY If you like math and statistics, learn more about the number ninjas referenced in the Student Guide. Go to to find out what an actuary does and what it takes to get a job in this career National Endowment for Financial Education Lesson 6-1: Manage Risk High School Financial Planning Program June 2014

22 Activity 6.1: Teens at Risk NAME: DATE: Directions: What hazards do you and other teens face each day? A. Think about your daily routine, and list at least three different ways you are open to risk of injury, property loss or damage, or other events that might result in unexpected costs. B. Recommend a strategy to reduce or avoid each risk you list. Teen Risk Strategy to Avoid or Reduce the Risk 2014 National Endowment for Financial Education Activity 6.1: Teens at Risk High School Financial Planning Program June 2014

23 Task: Global Consequences NAME: DATE: Directions: Generate at least five different descriptive consequences that would describe our world without a specific type of insurance. Be prepared to present the imagined world to the rest of the class. (A sample is provided for you at the bottom of this page.) To complete this task, think about the following questions. 1. Insurance companies share the risk of loss with you. There are three other ways to manage risk. What would they look like without insurance for the topic assigned to you? What would people do to avoid that type of risk? To reduce it? If they accepted it? 2. How would people prioritize their money and spending in this world you imagine? 3. What would become valuable to people in this imagined world? 4. What would become feared above all else? 5. How would this impact the way people interact with one another socially? Professionally? 6. How would this impact how we speak? What expressions or terminology would become popular? 7. What might be any cultural impacts, such as how we dress, the music we listen to, or the movies we watch. 8. What about any economic impacts? Would anything become more valued than money? Would we stop using money? Example: Imagine a world without water. Some possible consequences: People would have to change how they eat and bathe. The price of fruit and vegetables containing high amount of water would sky rocket. People might horde or steal rainwater. People might use water-like imagery when wishing someone well ( May your buckets always be full. ) or ill ( I hope your wells run dry. ) National Endowment for Financial Education Task: Global Consequences High School Financial Planning Program June 2014

24 Challenge 6-A: Case for Insurance NAME: DUE DATE: For this challenge, create an ad to inform your peers about the value of purposefully managing potential risks to minimize unexpected costs later. Your instructor will provide more detail about the ad style and how the ad will be shared with your peers. Directions 1. Create a 30- to 60-second ad to convince your peers of the value of purposefully managing potential risks to minimize unexpected costs later. Your ad should make a case for having insurance coverage and also include other risk management strategies that were presented in Lesson 6-1: Managing Risk. Use research and your group work imagining a world without insurance to brainstorm a list of reasons to be insured. 2. Be sure to preview the required performance criteria to plan your work. Be prepared to present your ad in any of the following formats as specified by your instructor. (Examples: radio ad, skit, television commercial, infomercial, or music video.) 3. Prior to sharing your ad, self-assess your work using the Scoring Guide National Endowment for Financial Education Challenge 6-A: Case for Insurance High School Financial Planning Program June 2014

25 Challenge 6-A: Case for Insurance NAME: DUE DATE: Required Criteria Status Content 1. Ad features a specific type of risk that is relevant to teen life situations. acceptable not acceptable 2. Ad reveals how the featured risk can lead to unexpected costs. acceptable not acceptable 3. Ad points out at least one recommendation or alternative action to avoid taking on the risk as a risk management strategy. 4. Ad points out at least one way to reduce the possibility of a negative financial impact as a risk management strategy. 5. Ad includes at least two examples of potential consequences that may result due to not being sufficiently insured. acceptable acceptable acceptable not acceptable not acceptable not acceptable 6. Ad includes logical reasoning for being insured. acceptable not acceptable 7. Ad includes at least two verifiable examples and/or credible statistics to support the message. acceptable not acceptable 8. Ad messaging is accurate. acceptable not acceptable Presentation 9. Presentation is at least 30 seconds and no more than 60 seconds in length (or) one full-page ad. acceptable not acceptable 10. Props, staging, and/or acting used in group presentation were appropriate and effective. 11. Presentation delivery was effective and did not detract from the overall message. 12. Presentation was organized logically and effectively to enhance persuasion. 13. Presentation was appropriate in content and language for the intended audience. acceptable acceptable acceptable acceptable not acceptable not acceptable not acceptable not acceptable 14. Presentation language was clear and audible to the entire audience. acceptable not acceptable 15. There is evidence that each group member made essential contribution to the preparation and delivery of the presentation. acceptable not acceptable Feedback: Score: / 2014 National Endowment for Financial Education Challenge 6-A: Case for Insurance High School Financial Planning Program June 2014

26 2014 National Endowment for Financial Education High School Financial Planning Program

27 TEACHER LESSON PLAN Lesson 6-2: How Insurance Works OVERVIEW Do you know what to do if your cellphone, car, bike, or other personal property is stolen, lost, or damaged? Would you be able to pay to replace or repair the item? Is the item covered by insurance? Before you can be a savvy insurance consumer, you need to crack the code on a few common terms and how insurance works. This will help you when deciding what type of insurance you need or if you need to collect insurance payments. When you are ready to talk to an insurance company representative, you will be prepared to answer and ask questions with confidence. In this lesson you will become familiar with the language of insurance as you learn about how to get insurance and how to file claims. LEARNING OUTCOMES In this lesson students investigate how insurance works. Along the way they will also learn the following: Describe how to get insurance coverage. Give examples of information provided in the insurance policy. Describe how to file an insurance claim. Summarize the rights and responsibilities of an insurance policyholder. Students will use what they learn today to prepare to apply for insurance or to file an insurance claim. PREPARATION Order a Module 6 Student Guide for each student. (The Guide is also available online to download.) Preview the lesson PowerPoint presentation, learning tasks, and the Module 6 Student Guide, particularly pages 8-12, 23. Print or download the Student Learning Plan for this lesson so each student has a copy. Consider asking a local insurance agent to speak to the class about specific topics marked with an asterisks (*), including providing examples that students can relate to. WHAT YOU WILL NEED Module 6 Student Guide (pages 8-17, 23) PowerPoint Presentation 6-2 Student Learning Plan 6-2 Samples of insurance policies specific to your state (Colorado sample provided for Activity 6.2) Activity 6.2: Read the Fine Print (Parts A and B) Activity 6.3: From Memory Challenge 6-B: Take an Inventory (optional with this lesson or Lesson 6-3) Challenge 6-C: Cellphone Insurance? YOU Decide! NOTES: Approximate time: 45 minutes (minimum) - 90 minutes (with extension activities) National Association of Insurance Commissioners, naic.org (Consumer Guides, InsureUonline.org, link to state insurance departments) Insurance Information Institute: (insurance statistics, glossary) 2014 National Endowment for Financial Education Lesson 6-2: How Insurance Works High School Financial Planning Program 1 June 2014

28 TEACHER LESSON PLAN Lesson 6-2: How Insurance Works Learning Tasks Teaching Notes Materials 1. Do you know what to do if your cellphone, car, bike, or other personal property is stolen, lost, or damaged? Is the item covered by insurance? Would you be able to pay to replace or repair the item? PROCEDURE TIME ESTIMATE: 5 minutes To lead into the lesson, ask students to volunteer what they would do if they discovered that something they own was stolen, lost, or damaged. Students who have experienced this type of loss might be willing to volunteer how they handled the problem. If they don t have (or know that they have) insurance coverage on the items, ask if they would be willing or able to pay for replacement or repair of the item, or would they just go without the item. [Slide 2] Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to prepare to apply for insurance or to file a claim. Module 6 Student Guide Student Learning Plan SLIDE 2 Preview 2. Although insurance is available for nearly every type of misfortune, you cannot get insurance for everything that you want protected. Find out the qualities to be INSURE-able, and then decide if the qualities apply to scenarios provided by your teacher. PROCEDURE* TIME: minutes [Slide 3, Student Guide page 8] By a show of hands, ask students to vote yes or no to answer the insurability questions about Katie and also about Aaron s dad. [Slide 4] Point out that while there is insurance coverage for nearly every type of misfortune, certain requirements need to be met to obtain insurance coverage. Show the INSURE-able qualities that help determine whether or not something can be insured. In general, to get insurance coverage, the loss must be unintentional and unexpected, you must be directly impacted financially, and there must be a way to provide evidence of loss. [Slide 5] Display the scenarios, and arrange for students to work in pairs (2-3 minutes) to decide whether or not each situation meets the INSURE-able guidelines. Ask the teams to defend their answers as you display each scenario. All scenarios are insurable except the coverage for lost pens or pencils. This is too trivial to bother with coverage. However, a business that sells large quantities of pens or pencils would insure the pen/pencil inventory because it has a significant value and a loss will financially impact the business. EXTENSION: Students may find it interesting to discuss examples of strange insurance coverage for unusual circumstances. For example, a professional ice cream taster has his taste buds insured as does a coffee bean taster. Search online for more examples of strange insurance or unusual insurance. Debrief by discussing the reasons for these types of unique insurance policies. Topic for insurance agent guest speaker. STUDENT GUIDE Pages 8-9 SLIDES 3 What Do You Think? 4 INSURE-able 5 Yes or No? 2014 National Endowment for Financial Education Lesson 6-2: How Insurance Works High School Financial Planning Program 2 June 2014

29 TEACHER LESSON PLAN Lesson 6-2: How Insurance Works Learning Tasks Teaching Notes Materials 3. Be prepared so you don t have a situation similar to when Katie planned to replace her stolen phone. Complete Part A of Activity 6.2: Read the Fine Print to find specific details about insurance coverage and conditions in an insurance policy. PROCEDURE* TIME: 10 minutes Lead into this section by using the Learning the Lingo story on page 12 to point out the value of knowing what is agreed to when buying insurance. [Slide 6] Outline the process to get insurance coverage as you introduce students to common insurance terminology. NOTE: At this time, only outline the process. More details about how insurance companies review applications and establish premiums are addressed in Lesson 6-3. [Slide 7] Give examples of how coverage limits and conditions might appear on a policy. Guide the students to examine an insurance policy as they complete Part A of Activity 6.2: Read the Fine Print. Note: They will complete Part B later in the lesson. RECOMMENDED: The samples provided are state specific. If possible, obtain sample policies that apply to your state. Topic for insurance agent guest speaker STUDENT GUIDE Pages SLIDES 6 Get Covered 7 Coverage and Conditions ACTIVITY Activity 6.2a: Read the Fine Print 4. Aaron has a problem after he discovers damage to his car. Learn from his experience to prepare yourself to deal with any similar situation. Finish Activity 6.2 to become familiar with the steps to file a claim. Would you be able to tell an agent what was missing or damaged if your home was damaged? Complete Activity 6.3: From Memory to test your memory. PROCEDURE* TIME: minutes Arrange for the students to read about Aaron s car damage situation (Student Guide, page 14). [Slide 8] Refer to Aaron s situation as you outline the common phases to recover losses from a misfortunate event. Introduce students to insurance terminology (page 15) as you summarize the claim process. [Slide 9] Point out that an insurance policy is a formal contract between the insured and the insurer. The person who purchases an insurance policy agrees to take on responsibilities and also can expect the insurer to agree to certain behaviors. Give students a specific amount of time (2-3 minutes) to complete Activity 6.3: From Memory. Debrief by asking students whether they found this to be an easy task or a difficult task. Relate this activity to any property loss incidents that students may be familiar with from personal experience or news reports, such as homes lost due to fire, hurricane, tornado flooding, or mud slides. If any students have access to cars, they can try the same activity to inventory what is currently in their cars. EXTENSION: Ask a claims adjuster to speak to the class about how an insurance company determines what is paid out for a claim. Topic for insurance agent guest speaker. STUDENT GUIDE Pages 14-17, 23 SLIDES 8 Cover a Loss 9 Law and Order of Insurance ACTIVITIES Activity 6.2b: Read the Fine Print Activity 6.3: From Memory 2014 National Endowment for Financial Education Lesson 6-2: How Insurance Works High School Financial Planning Program 3 June 2014

30 TEACHER LESSON PLAN Lesson 6-2: How Insurance Works Learning Tasks Teaching Notes Materials REFLECTION What are two habits you can take on now so you are ready to manage your own insurance paperwork and tasks? PROCEDURE* In-class or out-of-class assignment [Slide 10] Ask the students to reflect on what they think are positive habits to apply now so they are in a position to manage their own insurance business and procedures. Examples might include thoroughly reading insurance policies, setting up a filing system for insurance-related information, keeping an inventory of personal property. Topic for insurance agent guest speaker. SLIDE 10 - Reflection 5. Put the finishing touches on your personal property inventory as you complete Challenge 6-B: Take an Inventory. TAKING IT HOME Compare the current value of three items you own to how much it would cost to replace each item. FURTHER STUDY Look for interesting insurance-based facts and statistics for your state such as the likelihood of car striking a deer or the chance that you might be bitten by a dog. PROCEDURE In-class or out-of-class assignment * [Slide 11] Assign the students to independently complete Challenge 6-B: Take an Inventory. Preview the scoring criteria to guide the students in their work. It is also appropriate to assign Challenge 6-C: Cellphone Insurance? YOU Decide! with this lesson or with Lesson 6-3: Choose Insurance. PROCEDURE* In-class or out-of-class assignment Guide the students to conduct research to find out the replacement cost for items they value. Arrange to keep this information private; students should not share their responses with classmates. PROCEDURE* In-class or out-of-class assignment Direct the students to search the Internet to look for insurancebased facts and statistics in your state. Arrange for students to share what they have learned. In particular, ask students what they found surprising. RESOURCE: Statistics can be found at the Insurance Information Institute website: www2.iii.org/features/factsandstats/index.cfm. Topic for insurance agent guest speaker. STUDENT GUIDE Page 17 SLIDE 11 Challenge ACTIVITIES Challenge 6-B: Take an Inventory Challenge 6-C: Cellphone Insurance? YOU Decide! (optional) Topic for insurance agent guest speaker. Topic for insurance agent guest speaker. ACTIVITY Internet access 2014 National Endowment for Financial Education Lesson 6-2: How Insurance Works High School Financial Planning Program 4 June 2014

31 TEACHER LESSON PLAN Lesson 6-2: How Insurance Works REFLECTION What are two habits you can take on now so you are ready to manage your own insurance paperwork and tasks? TAKING IT HOME Identify three of your most valued, or valuable, possessions. Research the current value of each item, and then compare that value to how much it would cost you to replace each item. For example, if you have a gaming system, how much do you think you could get for it right now in a used condition? Keep in mind that the value of the system will be reduced over time due in part to real or anticipated wear and tear. Get an idea of how much money similar systems are selling for now by conducting a search on an online selling website. FURTHER STUDY* Check out the Insurance Information Institute s website for interesting insurance-based facts and statistics for your state such as the likelihood of car striking a deer or your being bitten by a dog: www2.iii.org/features/factsandstats/index.cfm National Endowment for Financial Education Lesson 6-2: How Insurance Works High School Financial Planning Program 5 June 2014

32 High School Financial Planning Program Lesson 6-2: How Insurance Works 2014 National Endowment for Financial Education 0

33 High School Financial Planning Program Lesson 6-2: How Insurance Works Display this slide as you kick off the opening activity National Endowment for Financial Education 1

34 High School Financial Planning Program Lesson 6-2: How Insurance Works To lead into the lesson, ask students to volunteer what they would do if they discovered that something they own was stolen, lost, or damaged. Students who have experienced this type of loss might be willing to volunteer how they handled the problem. If they don t have (or know that they have) insurance coverage on the items, ask if they would be willing or able to pay for replacement or repair of the item, or would they just go without the item. Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to prepare to apply for insurance or to file a claim National Endowment for Financial Education 2

35 High School Financial Planning Program Lesson 6-2: How Insurance Works Student Guide, page 8 By a show of hands, ask students to vote yes or no to answer the insurability questions about Katie and also about Aaron s dad. NOTE: The answers will be revealed as you present content from Slides 4 and National Endowment for Financial Education 3

36 High School Financial Planning Program Lesson 6-2: How Insurance Works Student Guide, page 9 Point out that while there is insurance coverage for nearly every type of misfortune, certain requirements need to be met for obtaining insurance coverage. Show the INSURE-able qualities that help determine whether or not something can be insured. In general, to get insurance coverage, the loss must be unintentional and unexpected, you must be directly impacted financially, and there must be a way to provide evidence of loss. NOTE: More detail is displayed on page 9 of the Student Guide National Endowment for Financial Education 4

37 High School Financial Planning Program Lesson 6-2: How Insurance Works Student Guide, pages 8-9 Display the scenarios, and arrange for students to work in pairs (2-3 minutes) to decide whether or not each situation meets the INSURE-able guidelines. Ask the teams to defend their answers as you display each scenario. All scenarios are insurable except the coverage for lost pens or pencils. This is too trivial to bother with coverage. However, a business that sells large quantities of pens or pencils might insure the pen/pencil inventory because it has a significant value and a loss will financially impact the business. EXTENSION: Students may find it interesting to discuss examples of strange insurance coverage for unusual circumstances. For example, a professional ice cream taster has his taste buds insured as does a coffee bean taster. Search online for more examples of strange insurance or unusual insurance. Debrief by discussing the reasons for these types of unique insurance policies National Endowment for Financial Education 5

38 High School Financial Planning Program Lesson 6-2: How Insurance Works Student Guide, pages Lead into this section by using the Learning the Lingo story on page 12 to point out the value of knowing what is agreed to when buying insurance. 1. Submit an application (hard copy or online) for insurance coverage. 2. When approved, insurance company will set specific coverage limits and conditions. The policyholder may have some flexibility in setting limits, but the conditions are typically set by the insurance company as they are standard for all policyholders. Point out that a policyholder can add riders for additional coverage of specific items. (Refer to Insuring Treasures for more information about riders.) 3. Policyholder makes regular premium payments to continue insurance coverage. Outline the process to get insurance coverage as you introduce students to common insurance terminology. NOTE: At this time, only outline the process. More details about how insurance companies review applications and establish premiums are addressed in Lesson National Endowment for Financial Education 6

39 High School Financial Planning Program Lesson 6-2: How Insurance Works Student Guide, page 13 Give examples of how coverage limits and conditions might appear on a policy. Guide the students to examine an insurance policy as they complete Part A of Activity 6.2: Read the Fine Print. Note: They will complete Part B later in the lesson. RECOMMENDED: The samples provided are state specific. If possible, obtain sample policies that apply to your state National Endowment for Financial Education 7

40 High School Financial Planning Program Lesson 6-2: How Insurance Works Student Guide, pages Arrange for the students to read about Aaron s car damage situation (Student Guide, page 14). Refer to Aaron s situation as you outline the common phases to recover losses from a misfortunate event. Introduce students to insurance terminology (page 15) as you summarize the claim process. 1. Policyholder files claim form to describe details of a qualifying event. 2. An insurance claims adjuster will investigate the event to determine if the claim is payment. If payable, the adjuster will establish the settlement amount. 3. If the claim is approved, the insurance company will settle the claim by paying the policyholder with a check. If a claim is denied, the insurance company will notify the policyholder of why the claim was denied National Endowment for Financial Education 8

41 High School Financial Planning Program Lesson 6-2: How Insurance Works Student Guide, page 23 Point out that an insurance policy is a formal contract between the insured and the insurer. The person who purchases an insurance policy agrees to take on responsibilities and also can expect the insurer to agree to certain behaviors. Student Guide, page 17 Give students a specific amount of time (2-3 minutes) to complete Activity 6.3: From Memory. Debrief by asking students whether they found this to be an easy task or a difficult task. Relate this activity to any property loss incidents that students may be familiar with from personal experience or news reports, such as homes lost due to fire, hurricane, tornado flooding, or mud slides. If any students have access to cars, they can try the same activity to inventory what is currently in their cars. EXTENSION: Ask a claims adjuster to speak to the class about how an insurance company determines what is paid out for a claim National Endowment for Financial Education 9

42 High School Financial Planning Program Lesson 6-2: How Insurance Works Ask the students to reflect on what they think are positive habits to apply now so they are in a position to manage their own insurance business and procedures. Examples might include thoroughly reading insurance policies, setting up a filing system for insurance-related information, keeping an inventory of personal property National Endowment for Financial Education 10

43 High School Financial Planning Program Lesson 6-2: How Insurance Works Student Guide, page 17 Assign the students to independently complete Challenge 6-B: Take an Inventory. Preview the scoring criteria to guide the students in their work. Student Guide, page 25 It is also appropriate to assign Challenge 6-C: Cellphone Insurance? YOU Decide! with this lesson or with Lesson 6-3: Choose Insurance National Endowment for Financial Education 11

44 High School Financial Planning Program Lesson 6-2: How Insurance Works 2014 National Endowment for Financial Education 12

45 STUDENT LEARNING PLAN Lesson 6-2: How Insurance Works OVERVIEW Do you know what to do if your cellphone, car, bike, or other personal property is stolen, lost, or damaged? Would you be able to pay to replace or repair the item? Is the item insured? Before you can be a savvy insurance consumer, you need to crack the code on a few common terms and how insurance works. This will help you when deciding what type of insurance you need or if you need to collect insurance payments. When you are ready to talk to an insurance company representative, you will be prepared to answer and ask questions with confidence. In this lesson, become familiar with the language of insurance as you learn how to get insurance and how to file claims. LEARNING OUTCOMES In this lesson you will investigate how insurance works. Along the way you will also learn the following: Describe how to get insurance coverage. Give examples of information provided in an insurance policy. Describe how to file an insurance claim. Summarize the rights and responsibilities of an insurance policyholder. Use what you learn today to prepare to apply for insurance or to file a claim LEARNING TASKS These tasks match pages 8-17, 23 in Student Guide 6. Do you know what to do if your cellphone, car, bike, or other personal property is stolen, lost, or damaged? Is the item covered by insurance? Would you be able to pay to replace or repair the item? Although insurance is available for nearly every type of misfortune, you cannot get insurance for everything that you want protected. Find out the qualities to be INSURE-able, and then decide if the qualities apply to scenarios provided by your teacher. Be prepared so you don t have a situation similar to when Katie planned to replace her stolen phone. Complete Part A of Activity 6.2: Read the Fine Print to find specific details about insurance coverage and conditions in an insurance policy. Aaron has a problem after he discovers damage to his car. Learn from his experience to prepare yourself to deal with any similar situation. Finish Activity 6.2 to become familiar with the steps to file a claim. Would you be able to tell an agent what was missing or damaged if your home was damaged? Complete Activity 6.3: From Memory to test your memory. Put the finishing touches on your personal property inventory as you complete Challenge 6-B: Take an Inventory. TAKING IT HOME Identify three of your most valued, or valuable, possessions. Research the current value of each item, and then compare that value to how much it would cost you to replace each item. For example, if you have a gaming system, how much do you think you could get for it right now in a used condition? Keep in mind that the value of the system will be reduced over time due in part to real or anticipated wear and tear. Get an idea of how much money similar systems are selling for now by conducting a search on an online selling website. REFLECTION What are two habits you can take on now so you are ready to manage your own insurance paperwork and tasks? FURTHER STUDY Check out the Insurance Information Institute s website for interesting insurance-based facts and statistics for your state such as the likelihood of car striking a deer or the chance that you might be bitten by a dog: www2.iii.org National Endowment for Financial Education Lesson 6-2: How Insurance Works High School Financial Planning Program June 2014

46 Activity 6.2: Read the Fine Print NAME: DATE: Directions: A. Read an insurance policy to highlight and summarize what is covered, the coverage limit, and two or three conditions for coverage. Type of policy Brief description of what is covered Coverage amount Two or three conditions for coverage B. Aaron is grateful that his dad and agent walked him through what to do after his car was damaged in the parking lot. Read the same policy used for Part A or scan through a different insurance policy to find out what to do to file a claim for that policy coverage. Type of policy Requirements to be eligible to file a claim Steps to file a claim Time limit to file the claim (if any) 2014 National Endowment for Financial Education Activity 6.2: Read the Fine Print High School Financial Planning Program June 2014

47 Activity 6.3: From Memory NAME: DATE: Directions: Imagine that your home was destroyed today and your insurance agent asked for a list all of your belongings kept in your room. A. From memory, create a list of the items in your room. B. Take the list home, and add to the list if you missed anything National Endowment for Financial Education Activity 6.3: From Memory High School Financial Planning Program June 2014

48 Challenge 6-B: Take an Inventory NAME: DUE DATE: For this challenge, put the finishing touches on the personal property inventory you started for Activity 6.3: From Memory. Once or twice a year throughout your lifetime, adjust the inventory to keep the information up to date so you can quickly retrieve details if ever needed for an insurance claim. Directions 1. Devise a system to keep an inventory record for at least 20 of your personal possessions. For the items you would want to replace, write down the year you got each item, and record the cash value. Create a way to easily maintain your inventory and preserve any evidence you might need to file an insurance claim. 2. Be sure to preview the required performance criteria to plan your work. Your instructor may have additional instructions and criteria for this assessment. 3. Self-assess your work using the Scoring Guide. Optional: Ask a family member to assess your work using the Scoring Guide. IMPORTANT: Your inventory details should be safeguarded and only shared for need-to-know reasons National Endowment for Financial Education Challenge 6-B: Take an Inventory High School Financial Planning Program June 2014

49 Challenge 6-B: Take an Inventory NAME: DUE DATE: Content Required Criteria Status 1. Inventory includes a list of at least 20 personal property items and property categories such as clothing or books. acceptable not acceptable 2. Inventory lists the year when each was purchased or received. A range of years is provided for multiple items in categories. acceptable not acceptable 3. Inventory includes an approximate current replacement cost for each item or category. acceptable not acceptable 4. Inventory includes a description of each item or category (including the make, model, and serial number if applicable). acceptable not acceptable 5. Inventory indicates whether or not a receipt is available for each item or category. acceptable not acceptable 6. Inventory indicates whether or not a photo or video of each item is available for each item or category. acceptable not acceptable General 7. Documentation is organized logically either in writing or in electronic format so information can be accessed upon demand if necessary. acceptable not acceptable 8. Documentation is neat and easy to read. acceptable not acceptable 9. Documentation can be stored in duplicate at another location as a backup measure in the event the original is destroyed. acceptable not acceptable 10. Learner provides explanation of the process that will be used to regularly manage the inventory when new items are added or items are removed. acceptable not acceptable Feedback: Score: / 2014 National Endowment for Financial Education Challenge 6-B: Take an Inventory High School Financial Planning Program June 2014

50 2014 National Endowment for Financial Education High School Financial Planning Program

51 TEACHER LESSON PLAN Lesson 6-3: Selecting Insurance OVERVIEW You have many life changes ahead of you. Along the way you re going to need different kinds of insurance protection for yourself, your loved ones, and your property. Maybe you don t have to worry about buying your own insurance right now because your family has insurance that covers you. But soon you will take on the responsibilities to purchase your own insurance. Do you know about the various types of insurance that are available (and in some cases required) to share the risk of financial hardship due to unfortunate events? In this lesson you learn about common types of insurance with different coverage for specific circumstances. LEARNING OUTCOMES In this lesson students make a decision about insurance coverage. Along the way they will do the following: Give examples of types of insurance. Identify types of insurance coverage that are relevant for teens and young adults. Discuss how insurance needs and coverage differ depending on personal situations. Students will use what they learn today to decide on insurance coverage for a specific circumstance. PREPARATION Order a Module 6 Student Guide for each student. (The Guide is also available online to download.) Preview the lesson PowerPoint presentation, learning tasks, and the Module 6 Student Guide, particularly pages Print or download the Student Learning Plan for this lesson so each student has a copy. Preview Learning Task 2 to determine if this lesson will be completed during one or two sessions. Create stations around the classroom where a member from each group can meet to research the type of insurance that has been assigned. There should be brochures, books, the Student Guide, computer with Internet access, and other resources students can use to address the questions presented in Learning Task 2. Topics marked with an asterisk (*) can also be addressed by a guest speaker insurance agent. WHAT YOU WILL NEED Module 6 Student Guide (pages 16-25) PowerPoint Presentation 6-3 Student Learning Plan 6-3 Notetaking Guide: Insurance Study (Learning Task 2) Check Quiz: What Insurance Covers That? Challenge 6-C: Cellphone Insurance? YOU Decide! Insurance literature (Learning Task 2) and/or Internet access (Optional) Sample insurance policies (Taking It Home task) NOTES: Approximate time: 45 minutes (minimum) - 90 minutes (if Learning Task 2 is extended into another session) Coverage for All: Foundation for Health Coverage Education, coverageforall.org (public and private health insurance eligibility information, Health Coverage Eligibility Quiz to identify free and low-cost insurance) Insurance Information Institute: (insurance statistics, glossary) 2014 National Endowment for Financial Education Lesson 6-3: Selecting Insurance High School Financial Planning Program 1 June 2014

52 TEACHER LESSON PLAN Lesson 6-3: Selecting Insurance Learning Tasks Teaching Notes Materials 1. Take a guess about a few insurancerelated statistics. PROCEDURE TIME ESTIMATE: 5 minutes Display Slide 2 and arrange for students to respond independently, in pairs, or as a whole class to the three Do You Know questions. Share the responses and ask students what they find interesting or surprising about the statistics. The five most expensive states for car insurance are (in order): Michigan, Montana, Washington D.C., Louisiana, and Florida) Source: Car Insurance Rates by State, 2015 Edition, April 13, 2015, This report is updated annually and includes details about how the information is collected and compared.) Point out that where a person lives can be a factor that impacts insurance costs, particularly auto insurance, renters insurance, and homeowners insurance. More details will be explored later in this lesson. One in five filers of new long-term disability claims are in their 20 s and 30 s. (Source: The 2014 Council for Disability Awareness Long-Term Disability Claims Review, canhappen.org/research/cda_ltd_claims_survey_2014.asp) Point out that while people might not consider the value of having disability insurance coverage, this can be a valuable option as a way to have income in the event a person is unable to work due to a health issue or injury. This is a good time to read The Odds statistics and the story about Katie s aunt (Student Guide, page 20). More details about disability insurance will be explored later in this lesson. Thirty-three percent of all business bankruptcies are due to employee theft. (Source: Statistic Brain, Employee Theft Statistics, September 18, 2012, Point out that businesses can carry insurance to cover losses due to theft, but the cost of coverage is passed on to customers. This is an example of insurance coverage that will be explored in more detail later in this lesson. [Slide 3] Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to make decisions about insurance coverage for specific circumstances. Module 6 Student Guide Student Learning Plan STUDENT GUIDE Page 20 SLIDES 2 Do You Know? 3 Preview 2014 National Endowment for Financial Education Lesson 6-3: Selecting Insurance High School Financial Planning Program 2 June 2014

53 TEACHER LESSON PLAN Lesson 6-3: Selecting Insurance Learning Tasks Teaching Notes Materials 2. Use your Student Guide, the Internet, and any available brochures to research different types of insurance assigned by your teacher. Follow the guidelines in the Note Taking Guide to become the topic specialist by gathering information about who uses the insurance, for what the insurance is used, and the costs of the insurance. As the specialist, be prepared to present the insurance study responses to your group. PROCEDURE* TIME: minutes (Option: Schedule student presentations for a later date.) PREPARATION: Divide the class evenly into two groups, labeled Group A and Group B. A member from each group will be assigned to research at least one specific type of insurance so all types are assigned within each group. Should you have fewer than 20 students, consider doubling up insurance topics. They will use the jigsaw method* to gather information to bring back to the one or two types of insurance to research. Create stations around the classroom where a member from each group can meet to become one of the classroom s two specialists for each topic by researching the type of insurance that was assigned. The stations should be stocked with brochures, books, the Student Guide, computer with Internet access, and other resources students can use to address the assigned questions. Inform the students that they will each learn about a specific type of insurance so they can teach their classmates about the insurance. By the end of this lesson, all students will use what they have learned about all types of insurance to complete a check quiz. Allow students a predetermined amount of time for research and collaboration to check facts before reconvening the original Group A and Group B. Arrange for the two groups to meet simultaneously so each student specialist takes a turn teaching group members about a type of insurance. The specialist will address each of the five questions while the others in the group take notes. *NOTE: The Jigsaw method is a cooperative learning technique in which students work in small groups. Jigsaw can be used in a variety of ways for a variety of goals, but it is primarily used for the acquisition and presentation of new material, review, or informed debate. In this method, each group member is assigned to become a "specialist" on some aspect of a unit of study by doing independent research. To increase the chances that information gathered is accurate, the students doing the research do not immediately take it back to their jigsaw group. Instead, they meet first with students who have the identical assignment (one from each jigsaw group). We call this the "specialist" group. It is particularly useful for students who might have initial difficulty learning or organizing their part of the assignment, for it allows them to hear and rehearse with other "specialists." Once each presenter is up to speed, the jigsaw groups break up so the topic specialists reconvene in their initial heterogeneous configuration. Each student in each group educates the whole group about her or his specialty. Students are then evaluated on what they have learned from their fellow group member. Topic for insurance agent guest speaker. STUDENT GUIDE Pages SLIDES 4 Specialist Insurance Topics 5 Specialist Report Outline ACTIVITIES Notetaking Guide: Insurance Study NOTE: Decide in advance whether or not to use the entire list, whether or not to remove auto from this lesson if students will focus on auto insurance in more detail in Lesson 6-4, or whether or not to combine any topics such as homeowners and renters or dental and vision. Set up research stations for specific types of insurance with literature for different types of insurance: - auto - dental - disability - fidelity bond - health - homeowners - liability - life - renters - unemployment - vision - workers compensation Suggested insurance websites 2014 National Endowment for Financial Education Lesson 6-3: Selecting Insurance High School Financial Planning Program 3 June 2014

54 TEACHER LESSON PLAN Lesson 6-3: Selecting Insurance Learning Tasks Teaching Notes Materials 3. Use what you learned from the insurance specialists to complete a check quiz (What Insurance Covers That?). Match insurance coverage with scenarios. Check your responses with a partner. PROCEDURE* TIME: 10 minutes Have students complete the What Insurance Covers That? check quiz. This can be done as a quiz show, in partners, or individually. Optional: Arrange for students to use their notes from the specialist reports. Or arrange for students to complete the check quiz in pairs and then compare responses with another pair group. Extension: Have students revisit the lists of risks they brainstormed in an earlier lesson (Lesson 6-1, Task 2). For every risk they identified earlier, have the students categorize the type of insurance (if any) that would cover that risk. For those risks that they (or you) do not know the answer to, add it to a list titled X Files. Once all risks have been accounted for, share the X File list with a local insurance agent for professional feedback. Extension: Assign the Taking It Further activity so students research types of specialty insurance coverage. Topic for insurance agent guest speaker STUDENT GUIDE Pages (optional) ACTIVITY Check Quiz: What Insurance Covers That? (optional) Taking It Further: Specialty Insurance Coverage REFLECTION 4. What two or three types of insurance coverage do you think are most important for teens and young adults? Why? PROCEDURE* TIME: 5 minutes [Slide 6] Ask the students to reflect on what the types of insurance they think are most relevant for teens and young adults. Examples of family insurance that covers teens: health, dental, vision, automobile, motorcycle, renters, or homeowners. If not yet presented to students from the presentations, point out in a follow-up discussion that some types of insurance are required by law, by employers, and by lenders. For example, states have different requirements for minimum auto insurance coverage, a lender might require mortgage insurance as terms for taking out a home loan, and some professions such as physicians and contractors have liability coverage requirements. As of 2014, all Americans are expected to have health insurance. With few exceptions, people who aren t insured will pay a penalty. [Student Guide, page 33] Find out more about the Patient Protection and Affordable Care Act at EXTENSION: Explain that under federal law, COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage allows for the temporary continuation of health insurance for people who no longer have employer-sponsored benefits due to specific life circumstances. Provide students with individual or family situation scenarios to decide whether or not an individual is eligible to apply for COBRA coverage. Source: Department of Labor, Topic for insurance agent guest speaker. STUDENT GUIDE Pages SLIDE 6 - Reflection 2014 National Endowment for Financial Education Lesson 6-3: Selecting Insurance High School Financial Planning Program 4 June 2014

55 TEACHER LESSON PLAN Lesson 6-3: Selecting Insurance Learning Tasks Teaching Notes Materials 5. Do you have a plan to cover the cost of a lost or damaged cellphone? Is insurance a good option, or might you have another plan to avoid, reduce, or accept the financial loss? Complete Challenge 6-C: Cellphone Insurance? You Decide! to decide the option that best fits your situation. PROCEDURE In-class or out-of-class assignment Assign Challenge 6-C: Cellphone Insurance? YOU Decide! Encourage students to consider options other than sharing the risk via insurance as they weigh the costs to replace a phone, insurance premiums and deductibles, insurance coverage and claim conditions, and their current life situations. This exercise prompts students to compare the costs and value of paying for insurance coverage compared to taking responsibility to reduce or avoid the risk of financial loss and/or accepting any consequences by covering costs with their own funds that they might purposefully set aside or have on hand in some type of emergency fund. Optional: Rather than weigh the benefits and costs of cellphone insurance, give students the option to assess ways to manage the risk for another situation that may be more relevant to their own lives or their family circumstances such as whether or not to pay for pet insurance, emergency road service, or travel insurance. STUDENT GUIDE Page 25 SLIDE 7 Challenge ACTIVITY Challenge 6-C: Cellphone Insurance TAKING IT HOME Read an active insurance policy to find out what is covered, what isn t covered, and any responsibilities the policyholder may have to keep coverage. PROCEDURE* In-class or out-of-class assignment Encourage students to read an actual active homeowners, renters, or health insurance policy. Ideally, this should be a family policy so students are familiar with their own coverage terms and conditions. However, if this is not possible, be prepared to provide students with sample policies that don t reveal any personal data. Depending on the student circumstances, encourage students to find specific coverage information. Examples are provided below: Graduating students: What is the coverage for personal items in dorm rooms or apartments? Students who drive: What is the coverage for personal items kept in a family-owned car? In someone else s car? Golfers: What is the coverage while driving a golf cart on a golf course? Pet owners: What is the coverage if a pet causes damage to someone or someone s property? Topic for insurance agent guest speaker National Endowment for Financial Education Lesson 6-3: Selecting Insurance High School Financial Planning Program 5 June 2014

56 TEACHER LESSON PLAN Lesson 6-3: Selecting Insurance Learning Tasks Teaching Notes Materials FURTHER STUDY Research special types of insurance to define each and identify who uses the insurance and why. PROCEDURE* In-class or out-of-class assignment EXTENSION: Have students complete the Taking It Further activity to research types of insurance for very specific types of coverage. Prompt the students to define the insurance, give examples of when this type of insurance is used, and explain why it is used. Crop Insurance Defense Base Act (DBA) Insurance Flood Insurance Livestock Insurance Malpractice Insurance Non-Appearance Insurance Pet Insurance Primary Mortgage Insurance (PMI) Title Insurance Travel Insurance Tuition Insurance Topic for insurance agent guest speaker. ACTIVITY Internet access TAKING IT HOME* Read an active homeowners, renters, health, or another insurance policy. Find out what is covered, what isn t covered, and any responsibilities the policyholder may have to keep coverage. If this is a policy for your family, discuss any adjustments that may help reduce the premium costs or reduce the risk of filing a claim. TAKING IT HOME* Having adequate insurance coverage is one way to plan for disaster. But your family will have more immediate needs in the event of an unplanned tragedy such as a car accident, flood, or long-term power outage. Create a road-side, evacuation, or blackout emergency kit for your family. Find emergency preparedness tips at FURTHER STUDY* Research any of these types of insurance to define each and identify who uses the special insurance and why: Crop Insurance Defense Base Act (DBA) Insurance Flood Insurance Livestock Insurance Malpractice Insurance Non-Appearance Insurance Pet Insurance Primary Mortgage Insurance (PMI) Title Insurance Travel Insurance Tuition Insurance 2014 National Endowment for Financial Education Lesson 6-3: Selecting Insurance High School Financial Planning Program 6 June 2014

57 High School Financial Planning Program Lesson 6-3: Selecting Insurance 2014 National Endowment for Financial Education 0

58 High School Financial Planning Program Lesson 6-3: Selecting Insurance Display this slide as you kick off the opening activity National Endowment for Financial Education 1

59 High School Financial Planning Program Lesson 6-3: Selecting Insurance Student Guide, page 20 Arrange for students to respond independently, in pairs, or as a whole class to the three Do You Know questions. Share the responses and ask students what they find interesting or surprising about the statistics. 1. The five most expensive states for car insurance are: Michigan, Montana, Washington D.C., Louisiana, and Florida. (Source: The Most and Least Expensive States for Car Insurance, April 13, 2015, This report is updated annually and includes details about how the information is collected and compared.) Point out that where a person lives can be a factor that impacts insurance costs, particularly auto insurance, renters insurance, and homeowners insurance. More details will be explored later in this lesson. 2. One in five filers of new long-term disability claims are in their 20 s and 30 s. (Source: The 2014 Council for Disability Awareness Long-Term Disability Claims Review, canhappen.org/research/cda_ltd_claims_survey_2014.asp) Point out that while people might not consider the value of having disability insurance coverage, this can be a valuable option as a way to have income in the event a person is unable to work due to a health issue or injury. This is a good time to read The Odds statistics and the story about Katie s aunt (Student Guide, page 20). More details about disability insurance will be explored later in this lesson. 3. Thirty-three percent of all business bankruptcies are due to employee theft. (Source: Statistic Brain, Employee Theft Statistics, September 18, 2012, Point out that businesses can carry insurance to cover losses due to theft, but the cost of coverage is passed on to customers. This is an example of insurance coverage that will be explored in more detail later in this lesson National Endowment for Financial Education 2

60 High School Financial Planning Program Lesson 6-3: Selecting Insurance Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to make decisions about insurance coverage for specific circumstances National Endowment for Financial Education 3

61 High School Financial Planning Program Lesson 6-3: Selecting Insurance Student Guide, pages PREPARATION: Divide the class evenly into two groups, labeled Group A and Group B. A member from each group will be assigned to research at least one specific type of insurance so all types are assigned within each group. Should you have fewer than 20 students, consider doubling up insurance topics. They will use the jigsaw method* to gather information to bring back to the one or two types of insurance to research. Create stations around the classroom where a member from each group can meet to become one of the classroom s two specialists for each topic by researching the type of insurance that was assigned. The stations should be stocked with brochures, books, the Student Guide, computer with Internet access, and other resources students can use to address the assigned questions. Inform the students that they will each learn about a specific type of insurance so they can teach their classmates about the insurance. By the end of this lesson, all students will use what they have learned about all types of insurance to complete a check quiz. Allow students a predetermined amount of time for research and collaboration to check facts before reconvening the original Group A and Group B. Arrange for the two groups to meet simultaneously so each student specialist takes a turn teaching group members about a type of insurance. The specialist will address each of the five questions while the others in the group take notes National Endowment for Financial Education 4

62 High School Financial Planning Program Lesson 6-3: Selecting Insurance Student Guide, pages Arrange for topic specialists to meet at their respective topic stations to research the type of insurance that was assigned. The stations should be stocked with brochures, books, the Student Guide, computer with Internet access, and other resources students can use to address the assigned questions. Inform the students that they will each learn about a specific type of insurance so they can teach their classmates about the insurance. By the end of this lesson, all students will use what they have learned about all types of insurance to complete a check quiz. Allow students a predetermined amount of time for research and collaboration to check facts before reconvening the original Group A and Group B. Arrange for the two groups to meet simultaneously so each student specialist takes a turn teaching group members about a type of insurance. The specialist will address each of the five questions while the others in the group take notes. Have students complete the What Insurance Covers That? check quiz. This can be done as a quiz show, in partners, or individually. Optional: Arrange for students to use their notes from the specialist reports. Or arrange for students to complete the check quiz in pairs and then compare responses with another pair group. Extension: Have students revisit the lists of risks they brainstormed in an earlier lesson (Lesson 6-1, Task 2). For every risk they identified earlier, have the students categorize the type of insurance (if any) that would cover that risk. For those risks that they (or you) do not know the answer to, add it to a list titled X Files. Once all risks have been accounted for, share the X File list with a local insurance agent for professional feedback. Extension: Assign the Taking It Further activity so students research types of specialty insurance coverage National Endowment for Financial Education 5

63 High School Financial Planning Program Lesson 6-3: Selecting Insurance Ask the students to reflect on what the types of insurance they think are most relevant for teens and young adults. Examples of family insurance that covers teens: automobile, dental, health, homeowners, renters, motorcycle, and vision. If not yet presented to students from the presentations, point out in a follow-up discussion that some types of insurance are required by law, by employers, and by lenders. For example, states have different requirements for minimum auto insurance coverage, a lender might require mortgage insurance as terms for taking out a home loan, and some professions such as physicians and contractors have liability coverage requirements. As of 2014, all Americans are expected to have health insurance. With few exceptions, people who aren t insured will pay a penalty. [Student Guide, page 33] Find out more about the Patient Protection and Affordable Care Act at EXTENSION: Explain that under federal law, COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage allows for the temporary continuation of health insurance for people who no longer have employer-sponsored benefits due to specific life circumstances. Provide students with individual or family situation scenarios to decide whether or not an individual is eligible to apply for COBRA coverage. Source: Department of Labor, National Endowment for Financial Education 6

64 High School Financial Planning Program Lesson 6-3: Selecting Insurance Student Guide, page 25 Assign Challenge 6-C: Cellphone Insurance? YOU Decide! Encourage students to consider options other than sharing the risk via insurance as they weigh the costs to replace a phone, insurance premiums and deductibles, insurance coverage and claim conditions, and their current life situations. This exercise prompts students to compare the costs and value of paying for insurance coverage compared to taking responsibility to reduce or avoid the risk of financial loss and/or accepting any consequences by covering costs with their own funds that they might purposefully set aside or have on hand in some type of emergency fund. Optional: Rather than weigh the benefits and costs of cellphone insurance, give students the option to assess ways to manage the risk for another situation that may be more relevant to their own lives or their family circumstances, such as whether or not to pay for pet insurance, emergency road service, or travel insurance National Endowment for Financial Education 7

65 High School Financial Planning Program Lesson 6-3: Selecting Insurance 2014 National Endowment for Financial Education 8