Insurance Basics: Premiums, Deductibles and Claims

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Business and Personal Finance · Personal Finance
SP-FIN-009 · Free to print and use in your classroom · substituteplans.com
Page 2
Insurance Basics: Premiums, Deductibles and
Claims
Business and Personal Finance · Personal Finance · Grades 10-12 · 45 minutes
Time needed
45 minutes (one class period)
Prep
Copy the 2-page worksheet (one per student). Calculators help but are not required.
Technology
Optional: calculators.
Student
independence
High. Students work alone, then compare with a partner.
Copies to make
One 2-page worksheet per student
Materials
Pencils, Worksheet, Calculators (optional)
Goal for today: Students will define key insurance terms and calculate how much a policyholder and an insurer pay in
common claim situations.
Before the bell
☐ Copy the worksheet, one per student (2 pages).
☐ Put out calculators if available.
☐ Write on the board: INSURANCE = paying a small, regular amount so a company covers part of a large
unexpected loss.
Say this to start
Today is about insurance, the way people share the risk of big unexpected costs. Students will match key terms and
then work out who pays what in several made-up situations. The numbers are all invented. No student should share a
personal or family claim.
Run of show
Minutes
What you do
What students do
0–5
Take attendance. Hand out the worksheet. Read the
definition of insurance on the board aloud.
Look over the worksheet.
5–12
Tell students to complete the matching (questions 1–4).
Match each term to its meaning.
12–28
Read the health plan rules aloud. Tell students to do
questions 5–7, then 8–9.
Calculate what the student pays and what
the insurer pays.
28–38
Tell students to do questions 10–11, comparing the two
policies.
Find yearly costs with and without a claim.
38–43
Tell students to finish questions 12–14. Read answers 1–11
from the key.
Answer and check their work.
43–45
Collect the worksheets and leave them in a stack for the
teacher.
Hand in the worksheet.

SubstitutePlans.com
Business and Personal Finance · Personal Finance
SP-FIN-009 · Free to print and use in your classroom · substituteplans.com
Page 3
If things go wrong
• If students ask whether these are real insurance rules: the plans are simplified examples. Real policies vary.
• If students are confused by coinsurance: say it is the percent the patient pays after the deductible is met.
• If students share a personal story about a claim, thank them but keep the lesson on the worksheet.
• If time is short, skip question 13.
Early finishers
• Write one reason a person might choose a higher deductible and one reason for a lower one.
• List three things people can insure besides cars, health and renters property.
Support and challenge
• Support: Draw a simple line on the board showing the deductible first, then the percent split, to help with
question 5.
• Challenge: Ask students to create a new situation with their own bill and calculate who pays what.
Notes for the teacher (you fill this in)
Jot a few lines before you leave. A full Daily Sub Report is in the free Sub Survival Kit at SubstitutePlans.com.
How far the class got / what to pick up next:
Students who were especially helpful:
Anything the teacher should know: