Life insurance 101

Introduction

What happens if you’re unable to work due to illness or accident, and your usual source of income disappears? Will you be able to survive?

Now think forward to the future. How would your future family continue to meet financial obligations if you should die unexpectedly? 

Why is this important?

Insurance is based on risk sharing and its function is to protect you against future unexpected financial losses. Understanding how insurance works and knowledge of different types of insurance puts you in a better position to plan for your future insurance needs.

Task

This WebQuest is set in the American wilderness in the 1800s. You will take on the role of Taylor Boone, owner of a financial services business at Fort Jimminy, a small American pioneer community of 100 families in the Ozark Mountains.

Your job in this WebQuest is to use your outstanding financial business skills to put together a practical solution for a risk faced daily by the Fort Jiminy men who hunt for food.

Process

Before you start...

Watch the following two video clips to give you the background information you need to complete this WebQuest:

Task 1 – Take cover

Download, complete and save the Task 1 worksheet – Take cover.

(Source: https://financialbasics.org.au/wp-content/uploads/2024/10/4_Task_1_Lifeinsurance101_Worksheet_take_cover.docx)

Task 2 – State your case

Use your Task 1 calculations and research to create an interesting presentation for the hunters and their families. The presentation should include:

  • A suitable title to clearly define the presentation content
  • A table or chart using ALL of your Question 1 calculations to clearly demonstrate how risk sharing works in term life insurance
  • An explanation of how the hunters and their families will benefit by having term life insurance
  • A brief outline of the benefits they could expect from the other types of life insurance you investigated
Evaluation

Submit your responses for Tasks 1 & 2 to your teacher. 

Your teacher will review your work and provide feedback.

Conclusion

There is a range of different types of insurance available, each suiting particular needs and requirements. What should you take into account when considering your insurance needs?

  • Consider your own needs and requirements. For example, if you don’t own a pet then Pet Insurance is not something you need or require!
  • Follow the financial rule of thumb ‘Shop Around’ to always make sure you get the best deal.
  • Continue to review your insurance policies to make sure that you are getting the best deal and receiving the best insurance cover to suit your needs.

 

Want to learn more about the different types of insurance available, and how these can help you manage risk? Ask your teacher to download the insurance resources from www.financialbasics.org.au.

Credits

Credits

This work is adapted, by the content owners, from the Financial Basics Foundation OFL (Operation Financial Literacy) resource Module 4: Insurance – managing risk. Check out the original resource for more teaching and learning activities in this content area.

Financial Basics Foundation resources are free for all Australian educators. You can access these resources here.

Other

Financial Basics Foundation Contact information

Connect with Financial Basics Foundation for more great resources and ideas, and become part of the #FinLit community!

YouTube: https://www.youtube.com/@financialbasics

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Twitter: @Financial_Basic

Email: info@financialbasics.org.au

URL: www.financialbasics.org.au

Teacher Page

Why should your students do this WebQuest? Insurance is a critical factor in financial planning and income protection. A basic understanding of life insurance and its subcategories introduces students to the importance of making informed insurance decisions as they transition towards becoming income earners.

WebQuest Goal: The tasks in this WebQuest are designed to introduce students to the risk sharing principle of insurance through a case study and an investigation focussing on knowledge and understanding of categories of life insurance.

Time required to complete this WebQuest:  Approximately 90 minutes.

Solution: A solution for the Task 1 worksheet – Take cover is available through the Financial Basics Foundation member portal.  Login to your account or sign up here if you’re not already a member. Once you’ve logged in, check out all of our other WebQuests and Resources by clicking on the Teacher Toolkit menu.  

FBF advice:

  • Students complete the Task 1 worksheet – Take cover electronically by typing their responses in the text entry fields. Alternatively, students can print and complete with handwritten responses.
  • Tasks in this WebQuest have been designed for students to complete individually.
  • The reading and comprehension ability required to complete this task is high.

Standards

The content and tasks in this WebQuest have been mapped to the following Australian Curriculum elements:

  • Economics & Business - Present reasoned arguments and evidence-based conclusions in a range of appropriate formats using economics and business conventions, language and concepts (ACHES048). Apply economics and business knowledge, skills and concepts in familiar and new situations (ACHES025). 
  • English - Create imaginative, informative and persuasive texts that present a point of view and advance or illustrate arguments, including texts that integrate visual, print and/or audio features (ACELY1746).
  • Information & Communication Technology Capability - Generate solutions to challenges and learning area tasks.