1. Insurance & Risk Management

2. Group Activity  Groups of 4 to 5  5 Minutes - brainstorm every type of risk a student might face in a typical day (physical, financial, social, etc.).  Examples - a student runs the risk of choking when eating breakfast, being involved in an accident on the way to school, falling down the stairs at school, getting a paper cut when a test is distributed, etc.

3. Can You Believe?  The number of insurance claims for auto accidents involving teens is ____% higher than those for adults.  Teen crash rates drop by ____% six months after getting their license.

4. Can You Believe?  In the latest survey available, ____% of the U.S. population experienced some level of disability in a year.  Head injuries cause about ____% of all bicycling fatalities.

5. Can You Believe?  There is a ____% chance you’ll be involved in an alcohol-related traffic accident at some point in your life.  At work, a disabling injury occurs every ____ seconds.

6. Can You Believe?  Sixteen-year-old drivers have ____ times the risk of being in a crash compared to 18-year-old drivers.

8. Risk Management “In exchange for a relatively small payment, which is the premium, you’re protected against the chance of a big financial setback, a large loss.”

9. Risk Management  Means you use various ways to deal with potential personal or financial losses.

10. Build Your Wealth  Read Build Your Wealth and complete the worksheet.

11. Story Book  Your task today is to create a children’s story that easily explains the importance of various financial terms and insurance.  You may work in a group of up to four people to create your story.  It should include the following terms: Wages, Health Care Insurance, Life Insurance, Retirement Fund, Vacation Leave, Auto Insurance, Sick Leave, and Home Owners Insurance.  Your story should be written such that a seven- year-old would understand these terms. Each page should include a picture as well as words.

12. Insurance  Protection against large-scale financial loss

13. Insurance Premium  The payment you make to an insurance company in exchange for its promise of protection and help.  Can be monthly, quarterly, semi- annually, or annually.

14. Deductible  The amount of the loss you must pay out of your own pocket before the insurance company begins to reimburse you.  Range from $100-$1,000+  SHOP AROUND for best rates

15. Types of Insurance Automobile Health Homeowners/Renters Life Disability

16. Auto Insurance  Liability Coverage  Medical Payments  Uninsured Motorist  Underinsured Motorist  Collision

17. Auto Policies  Age  Gender  Marital Status  Type of Car  Cost of Repairs  Mileage  Location  Law Enforcement  Driving Record The following factors can influence the cost of the policy.

18. Health Insurance  Pays the medical bills in case you or your family members, become sick or injured.  Most will cover you until age 19. If you are in college, they may extend until 23.

19. Health Insurance

20. Property Insurance  Protects your material possessions in case they are damaged by fire, flood, or theft.  Homeowner’s insurance vs Renter’s Insurance

21. Life Insurance  Anytime someone else depends on your income to help pay bills, you need life insurance.  Protects people who depend on you financially in the event of your untimely death.  Term Life vs Whole Life

22. Future Insurance Needs  Health Insurance  Property Insurance  Life Insurance  Disability Insurance  Liability Insurance

23. Estate Planning  Estate planning is preparing a plan for transferring property during one’s lifetime and at one’s death.  Goal should be to minimize taxes on the estate, make known how you want your possessions distributed, and to provide for a smooth transfer of your possessions to loved ones after death.

24. Tools for Estate Planning  Will  Trust  Joint Ownership of Assets

25. Will  A legal document that tells how you want your estate to be distributed after your death.

26. Power of Attorney  A legal instrument authorizing one to act as another’s attorney or agent.

27. Trust  A legal document in which an individual gives someone else control of property, for ultimate distribution to another person.