Skip to main content

Understanding how insurance works: A case study about Lucy


Students read about how insurance works and then review a case study to see how insurance choices can affect personal finances for a young adult in a rural area.

Big idea

When you purchase insurance, you are transferring financial risk from yourself to an insurance company.

Essential questions

  • What is the main benefit of choosing to purchase insurance?
  • How do the insurance company and the policyholder share risks and costs?


  • Understand how insurance works
  • Apply insurance policy specifics to a case study to evaluate costs and benefits

What students will do

  • Read about how the insurance process works and discover what roles the insurance company and the policyholders play.
  • Review information about specific types of insurance policy coverage and costs.
  • Evaluate a case study to see how one policyholder’s insurance choices affected her financially.
  • Write an advice email about the value of insurance in that policyholder’s life.

Download activity

Teacher guide


Student materials



Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.