Insurance Success Criteria 1.Understands the terms linked to insurance premiums 1.To explain the terms linked with insurance 2.Can calculate the premium.

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Presentation transcript:

Insurance Success Criteria 1.Understands the terms linked to insurance premiums 1.To explain the terms linked with insurance 2.Can calculate the premium due when told the cost per £100 or £ 1000 etc 2.To show how to calculate insurance premiums Learning Intention

Insurance Terms Premium : This is the amount you pay the company. You may pay one premium per year Often the premium is paid monthly Rate : This depends on how much cover you want. The company often tells you how much it will cost to insure £1000 worth of goods Insurance companies will pay for lost or damaged goods if you pay them a set amount on a regular basis.

Types of Insurance House Insurance : This covers the building itself eg fire, explosion or storm damage. A storm could blow tiles off the roof or someone could kick a football through a window Contents Insurance : This protects you against theft or accidental damage ( you drop a TV ) Policy : A document which details what you are insured for…. The rules. What the insurance company agree to cover.

Insurance C. ÷x 0 + On ² - Ans = √ (-) Insurance companies use the crime records of areas of the country to predict the likeliness ( probability ) of your house being broken into. AreaABCDEFG Rate per £1 000 £2.00£2.50£4.00£5.00£6.50£9.00£14.00 If you live in Area C then to insure £1 000 of contents you will need to pay a premium of The table below shows the premium for 7 areas. High risk addresses will pay the highest premium £4.00

Area Rate per £1 000 Contents Insurance C. ÷x 0 + On ² - Ans = √ (-) AB C DE F G £2.00 £2.50£4.00 £5.00 £6.50 £9.00 £14.00 Start Calculate the premium due C £4000 Area To cover £1000 To cover £4000 Next Contents value Hide

Insurance x60 C. ÷x On ² - Ans = √ (-) Start Example 1 Houseguard charge £3.80 per £1 000 value, annually, to insure a building in the city centre. Karen’s flat is worth £ How much will she pay per year Insurance for £1000 = £3.80 Insurance for £60 000=£3.80 x 60 Premium is £228 £1000 x = £ ÷10 ÷ ÷ 1000 Opposite of Multiply is divide ÷ 1000 =60 How Many 1 000’s

Insurance x180 C. ÷x On ² - Ans = √ (-) Start Houseguard charge £2.40 per £1 000 value, annually, to insure a building in a small country village. Johns house is worth £ How much will she pay per year Insurance for £1000 = £2.40 Insurance for £60 000=£2.40 x 180 Premium is £ ÷10 ÷ ÷ 1000 Opposite of Multiply is divide ÷ 1000 =180 How Many 1 000’s Risk is lower in the country so rate is lower

Insurance C. ÷x 0 + On ² - Ans = √ (-) Start Rate per £1000 Insure ForPremium £9.50 £3.20 £2.40 £ 8 £6.40 £ £ £ £ £ 9700 = = = £8.00 x 10.5 £ 84 = £6.40 x 9.7 £62.08 =