
8.1 Intro to Insurance Lesson
Presentation
•
Mathematics
•
12th Grade
•
Easy
+24
Standards-aligned
Marisa Pruitt
Used 16+ times
FREE Resource
6 Slides • 20 Questions
1
2
Open Ended
What is the average cost to repair an iPhone Screen?
3
4
Poll
Have you repaired your phone in the last year?
Yes
No
5
Open Ended
Why would you carry cell phone insurance?
6
7
Multiple Choice
Video Question #1:
The purpose of insurance is to...
Build Wealth
Transfer Risk
Manage Assets
Build Relationships
8
Multiple Choice
Video Question #2:
Why is it important for insurance companies to have a large risk pool of people paying premiums?
If a large pool of people pay premiums, insurance company employees will get more bonuses included in their next paycheck
The premium payments of all the insured clients will cover the costs for the emergencies of the few who need it
The more people that pay premiums, the more careful each insured client becomes with their lifestyle choices
A large pool of people paying premiums allows insurance companies to have a larger social media following
9
Multiple Choice
Video Question #3:
What role does math play in the insurance industry?
Insurance companies use statistics to find how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit
Insurance companies use algebra and geometry to calculate the distance from clients' major emergencies to nearest hospitals
Insurance companies use statistics to hypothesize how likely clients are to switch over to competitive companies
Insurance companies use calculus to find out how likely a client will need to use the insurance so they can set premiums in order to have the highest chance of making a profit
10
In addition to having a fixed premium, most insurance plans also have a deductible and a coverage limit. Use this infographic to answer the next 2 questions on slides 11 and 12.
11
Match
Infographic Question #1
Jerry has an insurance policy with a premium of $150 per month. In June, he causes an accident and receives a bill with a total cost of $6000. His deductible is $1500, and his coverage limit is $10,000.
How much total money will Jerry have to pay in the month of June, given he pays for the accident?
How much will the insurance company pay for the accident?
$1500
$4500
$1500
$4500
12
Match
Infographic Question #2
After the accident, Jerry starts thinking, “Wow, that $1500 deductible is a lot to pay for all at once! Who knows when I’ll get in another accident, but I sure wish my deductible were lower!” He asks his auto insurance agent, who shows him this chart:
What will Jerry need to do in order to pay a lower deductible?
Name a benefit of a lower premium.
Name a benefit of a lower deductible.
High monthly to low out-of-pocket cost
Pay a higher monthly premium
Fits a monthly budget
Lower out of pocket cost for an accident
High monthly to low out-of-pocket cost
Pay a higher monthly premium
Fits a monthly budget
Lower out of pocket cost for an accident
13
14
Multiple Choice
What is the primary purpose of insurance according to the video?
To create wealth
To provide protection against risks
To invest in the stock market
To increase debt
15
Multiple Choice
How do insurance companies profit from risks?
By collecting premiums from policyholders
By charging higher premiums than necessary
By investing in real estate
By providing free services
16
Multiple Choice
What does the video suggest about the relationship between insurance and risk?
Insurance eliminates risks completely
Insurance transfers risks to larger companies
Insurance increases individual risk
Insurance has no effect on risk
17
Multiple Choice
Why is reinsurance important for insurance companies?
It allows them to pay out more claims
It helps them avoid financial ruin in case of large losses
It is a legal requirement
It increases their customer base
18
Multiple Choice
What can happen if someone commits insurance fraud?
They may receive more money
They can face legal consequences
They will be rewarded
Their insurance policy becomes free
19
As you play the game, pay attention to how your insurance choices and the outcomes of the Wheel of Bummers impact Your Total Money.
Bummer! has 4 rounds - pet, rental, auto, and then all 3 combined.
20
Multiple Select
How many rounds did you make it through before running out of money? Or, did you win the game?
I made it through 1 round
I made it through 2 rounds
I made it through 3 rounds
I won the game!
21
Reorder
Rank these in order of importance to you as you considered each type of insurance in the game.
Monthly Premium
Coverage
Deductible
22
Open Ended
If you played again, what would you do differently? Why?
23
Open Ended
After buying your basic coverage, the game offered you extra coverage referred to as Add-ons.
In real life, they’re called riders or endorsements.
What strategies did you use to determine if a rider was worth the additional premium cost per month?
24
Open Ended
In the game, you’re FORCED to buy at least minimal coverage for each of three insurance types -- pet, rental, and auto.
In real life, if your monthly budget was tight, what insurance type(s) would you cut? Why?
25
Multiple Select
What would be any risk(s) of reducing or eliminating coverage?
House fire - can't purchase replacement items
Car accident - can't replace car
Owe full bill for hospital stay
Doggo gets bit by a snake - vet bill is all yours
Owe a ton of money to a bunch of companies
26
Draw
The purpose of insurance is to provide you with financial protection against a possible risk. In Bummer!, risk is generated by the Wheel of Bummers.
Draw how you FELT each time you spun the Wheel of Bummers, both when you had plenty of money and when you were short on cash.
Show answer
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