Buying insurance helps you protect against risks. The purchase of insurance involves paying an amount called a premium at regular intervals, with the understanding that if negative events occur, the insurance company will pay certain costs. What are some types of insurance and what do they cover?
Insurance can be complicated. Read the two Tampa Bay Times articles below on messy insurance issues. What are some of the problems identified in the articles? How do unethical practices impact the price consumers pay for insurance? What advice do you have for consumers who are going to purchase insurance? What would you do if you were the owner of an insurance company?
SS.8.FL.6.1 Analyze the fact that personal financial risk exists when unexpected events can damage health, income, property, wealth, or future opportunities.
SS.8.FL.6.2 Identify insurance as a product that allows people to pay a fee (called a premium) now to transfer the costs of a potential loss to a third party.
SS.912.FL.6.1:Describe how individuals vary with respect to their willingness to accept risk and why most people are willing to pay a small cost now if it means they can avoid a possible larger loss later.
SS.912.FL.6.7:Compare the purposes of various types of insurance, including that health insurance provides for funds to pay for health care in the event of illness and may also pay for the cost of preventative care; disability insurance is income insurance that provides funds to replace income lost while an individual is ill or injured and unable to work; property and casualty insurance pays for damage or loss to the insured’s property; life insurance benefits are paid to the insured’s beneficiaries in the event of the policyholder’s death.
Created by Deborah Kozdras and Brittany Sampson