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Understanding how insurance works: A case study about Lucy

Updated

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

Big idea

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

Essential questions

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

Objectives

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

What students will do

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