Insurance Expert Script

Introduction & Warm-Up: What's Your Risk? (10 minutes)

(Teacher): "Good morning/afternoon everyone! Today, we're diving into a super important topic for your financial future: insurance. To start, I want you to imagine a couple of scenarios. Imagine your brand-new laptop, which you saved for months to buy, suddenly stops working and it's out of warranty. How would that impact you? Or, let's say you get into a minor car accident on the way to school, and it was your fault. How would these situations impact you financially?"

(Teacher): "Take a moment to think about it. What kind of feelings come up? What are some of the immediate financial consequences?"

(Teacher): "Let's discuss. When we think about situations like these, we're talking about risk. Risk is the possibility of something bad happening that could lead to a financial loss. Can anyone share a thought using one of these sentence stems?"

• Sentence Stem 1: "One financial risk I've thought about is... and it would impact me by..."
• Sentence Stem 2: "If [situation] happened, I would be financially impacted by..."

(Teacher): (Facilitate a brief discussion, encouraging students to use the sentence stems. Refer to Smart Choices Slide Deck - Slide 1-2. Make sure to define Risk and Protection)

Exploring Insurance Types (15 minutes)

(Teacher): "Great job thinking about risks! Now, the good news is that there are ways to protect ourselves from these potential financial losses. That's where insurance comes in. Today, we're going to explore different types of insurance that can help protect us."

(Teacher): "First, I'm going to hand out a reading called What's Your Policy? Reading. I'd like you to read through it individually or with a partner. As you read, please highlight or jot down any key vocabulary terms related to insurance that you find. These might be words you've heard before, or completely new ones. (Scaffolding: For students who may struggle with reading comprehension, pair them with a stronger reader or provide a pre-highlighted copy of key terms.)"

(Teacher): (Allow time for reading - approximately 7-8 minutes).

(Teacher): "Okay, now that you've had a chance to read, let's go through the main types of insurance together. We'll use our Smart Choices Slide Deck to guide us. As we go, we'll define some of those key vocabulary terms you found."

Auto Insurance (Refer to Smart Choices Slide Deck - Slide 3)

(Teacher): "Let's start with Auto Insurance. How many of you know someone who has car insurance or will need it soon?"

(Teacher): "The purpose of auto insurance is to protect you financially from accidents or theft involving your vehicle. It's often legally required. Key terms here include:

• Premium: The regular payment you make to the insurance company.
• Deductible: The amount you pay out-of-pocket before your insurance starts to pay.
• Liability: This covers damage you cause to other people or their property in an accident.
• Collision: This covers damage to your own car from an accident.
• Comprehensive: This covers damage to your car from things other than collisions, like theft, vandalism, or natural disasters."

(Teacher): "Why do you think auto insurance is legally required in most places?"

Health Insurance (Refer to Smart Choices Slide Deck - Slide 4)

(Teacher): "Next, we have Health Insurance. This is incredibly important. Its purpose is to help pay for medical expenses – doctor visits, hospital stays, prescription drugs, and more. Medical bills can be extremely expensive, so health insurance is essential for financial well-being."

(Teacher): "Again, we see Premium and Deductible here. New terms include:

• Copay/Coinsurance: This is your share of the cost for a medical service after you've met your deductible."

(Teacher): "Think about this: Why is having health insurance a smart choice even if you consider yourself healthy? Discuss with a partner for a minute. (Scaffolding: Provide sentence stem: 'Even if I am healthy, health insurance is important because...')"

Home & Renter's Insurance (Refer to Smart Choices Slide Deck - Slide 5)

(Teacher): "Moving on to where you live – Homeowner's and Renter's Insurance. If you own a house, homeowner's insurance protects your most valuable asset. It typically covers:

• Dwelling: Damage to the physical structure of your house (for homeowner's).
• Personal Property: Your belongings inside the home (furniture, electronics, clothing).
• Liability: This covers injuries to others who might get hurt on your property."

(Teacher): "A common misconception is that a landlord's insurance covers a renter's belongings. Why is this usually not true? What does a landlord's insurance cover?"

Life Insurance (Refer to Smart Choices Slide Deck - Slide 6)

(Teacher): "Now, let's talk about Life Insurance. This type of insurance provides financial support to your beneficiaries – the loved ones you choose – after your death. It helps them cover expenses like mortgages, education, or daily living costs."

(Teacher): "There are two main types:

• Term Life: This covers you for a specific period, like 10, 20, or 30 years.
• Whole Life: This provides coverage for your entire life."

(Teacher): "Who typically needs life insurance, and why is it important for them?"

Disability Insurance (Refer to Smart Choices Slide Deck - Slide 7)

(Teacher): "Finally, we have Disability Insurance. This is often overlooked but extremely important! Its purpose is to replace a portion of your income if you become unable to work due to illness or injury."

(Teacher): "It can be:

• Short-Term Disability: Covers shorter periods, like a few months.
• Long-Term Disability: Covers extended periods, sometimes even until retirement age.
• Waiting Period: The amount of time after you become disabled before benefits begin."

(Teacher): "Think about your future career. Why is protecting your ability to earn an income just as important as protecting your car or your home?"

Insurance Jargon & Purpose Activity (15 minutes)

(Teacher): "Excellent discussion, everyone! Now it's time to solidify your understanding of these terms and concepts. I'm handing out the Insurance Jargon Worksheet. You'll match vocabulary terms with their definitions and identify the primary purpose of each insurance type we discussed."

(Teacher): (Circulate and provide support. Scaffolding: Remind students they can refer back to their What's Your Policy? Reading or the Smart Choices Slide Deck if they need help. For students needing extra support, you might provide a word bank for the definitions.)

(Teacher): "You have about 10 minutes for this. When you're done, we'll quickly go over the answers as a class using the Insurance Answer Key."

(Teacher): (After 10 minutes): "Let's review the worksheet together. Any questions on these terms? It's important to have a clear understanding of this vocabulary. (Refer to Smart Choices Slide Deck - Slide 8 for a quick recap of insurance types.)"

Risk & Reward Matching Game (15 minutes)

(Teacher): "Alright, to put your knowledge to the test in a fun way, we're going to play the Risk & Reward Matching Game! I'll divide you into small groups. Each group will receive a set of cards: "

(Teacher): "Work together in your groups. Discuss why you think each match is correct. You have 12 minutes. (Scaffolding: Provide a list of insurance types as a reference for struggling groups)."

(Teacher): (After 12 minutes): "Time's up! Let's quickly go around and have each group share one match they made and explain their reasoning. Great job identifying those connections between risks and their insurance solutions!"

Decoding Retirement: 401ks, IRAs & More (20 minutes)

(Teacher): "Excellent work understanding how to protect against immediate risks with insurance! Now, let's shift our focus to an equally vital part of financial well-being: planning for your future, specifically retirement."

(Teacher): "Retirement might seem like a lifetime away, but the earlier you start thinking about it and saving, the more your money can grow thanks to something called compound interest – earning interest on your initial savings and on the accumulated interest. I'm handing out the Retirement Roadmap Reading. Please read through it individually or with a partner. Focus on the different types of retirement accounts: 401(k)s, Traditional IRAs, and Roth IRAs."

(Teacher): (Allow time for reading - approximately 8-10 minutes).

(Teacher): "Now, let's break down these retirement accounts using our Smart Choices Slide Deck (refer to new retirement slides). We'll cover what each one is, their main pros and cons, and some general 'Dos and Don'ts' for saving."

401(k) Plans (Refer to Smart Choices Slide Deck - new 401k slide)

(Teacher): "Let's start with the 401(k). This is very common, especially if you work for a larger company. The biggest perk? Many employers offer a matching contribution. Can anyone explain why an employer match is such a big deal?"

(Teacher): "Remember, with a 401(k), your contributions often lower your taxable income now, and your money grows tax-deferred. You'll pay taxes when you take it out in retirement. Think of it as 'pay taxes later.'"

Traditional IRA (Refer to Smart Choices Slide Deck - new Traditional IRA slide)

(Teacher): "Next, the Traditional IRA. This is a personal account you set up yourself. It also offers tax-deferred growth, and your contributions might be tax-deductible. If you don't have a 401(k) or want to save more, an IRA is a great option. What's a key difference between an IRA and a 401(k)?"

Roth IRA (Refer to Smart Choices Slide Deck - new Roth IRA slide)

(Teacher): "And then we have the Roth IRA. This is often very popular with younger people. The big difference here is that you contribute money after taxes have already been paid. But the huge benefit? Qualified withdrawals in retirement are tax-free! No taxes on that growth! Why might someone choose to pay taxes now instead of later?"

Retirement Savings: Dos and Don'ts (Refer to Smart Choices Slide Deck - new Dos and Don'ts slide)

(Teacher): "To summarize, starting early and contributing regularly are paramount. Let's look at some universal 'Dos and Don'ts' for retirement savings. Why is 'Start Early' listed as the top 'Do'? Think about what we mentioned about compound interest."

(Teacher): "And what's one 'Don't' that you think might be hard for people to follow?"

Discussion: Making Smart Choices (10 minutes)

(Teacher): "Now that we've explored different types of insurance and how they work, along with key retirement savings options, let's think about making personal choices. Imagine you're graduating next year. What type of insurance and what kind of savings plan do you think you'll need first, and why?" (Refer to Smart Choices Slide Deck - Slide 9 and new retirement summary slide)

(Teacher): "I'm handing out the Insure Your Future Discussion Guide. In your groups or with a partner, I want you to consider these questions. Focus on the 'Questions to Ask' section for both insurance and retirement. We won't get through all of them, but pick a few that resonate with you."

• Sentence Stem: "When considering [type of insurance/retirement account], a key question I would ask is... because..."

(Teacher): (Facilitate a short, large-group discussion based on student responses. Emphasize that financial needs change throughout life.)

Activity: My Insurance Snapshot & Future Fortune (0 minutes - Homework or Extension)

(Teacher): "For your independent reflection, I'm giving you the My Insurance Snapshot Activity and the Future Fortune Activity. These are chances to think about what insurance you might need at different stages of your life and some specific questions you'd want to ask about both insurance and retirement savings."

(Teacher): "These can be completed for homework or as an extension if we have extra time. They're great ways to personalize what we've learned today."

Conclusion & Cool Down (5 minutes)

(Teacher): "To wrap up our lesson on insurance and retirement, I want you to think about one new thing you learned or one thing that surprised you today about securing your financial future."

(Teacher): "On the Insurance Reflection Cool Down, please write down your thoughts. This will serve as our exit ticket for today."

(Teacher): "Understanding insurance and retirement savings might seem complex, but they are vital skills for managing your money and protecting your future. Great work today, everyone!"

What's Your Policy? An Introduction to Insurance

Life is full of uncertainties. From unexpected accidents to sudden illnesses, things can happen that cost a lot of money and disrupt our financial stability. That's where insurance comes in! Insurance is a way to protect yourself and your loved ones financially from potential losses. When you have insurance, you pay a regular amount (called a premium) to an insurance company. In exchange, the company agrees to pay for certain financial losses if a covered event happens. Think of it as a safety net!

Let's explore some of the most common types of insurance:

1. Auto Insurance: On the Road to Safety

If you own a car, auto insurance is almost always a legal requirement, and for good reason! Its main purpose is to protect you financially from accidents or theft involving your vehicle. Without it, you could be responsible for thousands, even hundreds of thousands, of dollars in damages.

Key Terms for Auto Insurance:

• Liability Coverage: This is the most basic and often legally required part. It covers damages to other people or their property if you are at fault in an accident. It doesn't cover damage to your own car.
• Collision Coverage: This pays for damage to your own car if it collides with another vehicle or object (like a tree or a pole).
• Comprehensive Coverage: This covers damage to your car from things other than collisions, such as theft, vandalism, fire, or natural disasters (like hail or floods).
• Deductible: This is the amount of money you have to pay out-of-pocket for a covered claim before your insurance company starts to pay. For example, if you have a $500 deductible and $2000 in damages, you pay the first $500, and your insurance pays the remaining $1500.

2. Health Insurance: Your Wellness Shield

Health insurance is incredibly important for paying medical expenses. Whether it's a routine doctor's visit, a trip to the emergency room, or a major surgery, healthcare costs can be very high. Health insurance helps you manage these costs, preventing huge medical bills from ruining your financial health.

Key Terms for Health Insurance:

• Premium: The regular amount you pay to the insurance company (e.g., monthly) to keep your health coverage.
• Deductible: Similar to auto insurance, this is the amount you must pay for covered medical services before your health insurance plan starts to pay.
• Copay (Copayment): A fixed amount you pay for a covered healthcare service (like a doctor's visit or prescription) after you've met your deductible. You might pay a $25 copay for a doctor's visit.
• Coinsurance: This is a percentage of the cost of a covered service that you pay after you've met your deductible. For example, if your coinsurance is 20%, and a procedure costs $1000 after your deductible, you would pay $200.

3. Homeowner's & Renter's Insurance: Protecting Your Space

Homeowner's Insurance:

If you own a house, homeowner's insurance protects your most valuable asset. It typically covers:

• Dwelling: Damage to the physical structure of your house (e.g., from fire, storms, vandalism).
• Personal Property: Your belongings inside the home (furniture, electronics, clothing) from theft or damage.
• Liability: If someone is injured on your property and you are found responsible, this coverage helps with their medical bills or legal costs.

Renter's Insurance:

If you rent an apartment or house, your landlord's insurance policy does not cover your personal belongings. That's why renter's insurance is essential for tenants. It protects:

• Personal Property: Your belongings from theft or damage (e.g., if a fire destroys your apartment).
• Liability: If someone is injured in your rented space and you are found responsible.

4. Life Insurance: Peace of Mind for Loved Ones

It might seem strange to think about, but life insurance is about protecting the financial future of the people who depend on you. Its purpose is to provide financial support to your beneficiaries (the person or people you name to receive the money) after your death. This money can help them cover expenses like funeral costs, outstanding debts (like a mortgage), daily living expenses, or future education costs.

Types of Life Insurance:

• Term Life Insurance: This provides coverage for a specific period of time (e.g., 10, 20, or 30 years). If you pass away within that term, your beneficiaries receive a payout. It's often more affordable than whole life insurance.
• Whole Life Insurance: This provides coverage for your entire life, as long as premiums are paid. It also typically has a cash value component that can grow over time.

5. Disability Insurance: Protecting Your Paycheck

What happens if you become sick or injured and can't work for an extended period? Your income stops, but your bills don't! Disability insurance is designed to replace a portion of your income if you become unable to work due to illness or injury. It's a crucial way to protect your ability to earn a living.

Types of Disability Insurance:

• Short-Term Disability (STD): This replaces a percentage of your income for a shorter period, typically a few weeks to a few months (e.g., 3 to 6 months). It's often used for temporary conditions like recovering from surgery or a short-term illness.
• Long-Term Disability (LTD): This replaces a percentage of your income for an extended period, which could be several years or even up to retirement age, if you suffer from a severe, long-lasting illness or injury.
• Waiting Period (Elimination Period): This is the amount of time you have to wait after becoming disabled before your benefits begin to be paid out. It can range from a few days for STD to 30, 60, or even 90+ days for LTD.

Retirement Roadmap: Your Journey to Financial Freedom

Beyond protecting yourself from immediate risks with insurance, a crucial part of securing your financial future is planning for retirement. Retirement might seem a long way off, but the earlier you start saving, the more your money can grow thanks to something called compound interest – earning interest on your initial savings and on the accumulated interest. This reading will introduce you to some common retirement savings vehicles.

Why Save for Retirement?

• Financial Independence: To maintain your desired lifestyle when you're no longer working.
• Healthcare Costs: Medical expenses can increase significantly in retirement.
• Longer Lifespans: People are living longer, meaning retirement savings need to stretch further.
• Social Security may not be enough: Social Security benefits are often not sufficient to cover all retirement expenses.

Common Retirement Savings Accounts

1. 401(k) Plan

A 401(k) is an employer-sponsored retirement savings plan. Many companies offer them, and it's a popular way to save for retirement, especially if your employer offers a matching contribution (meaning they also put money into your account, often up to a certain percentage of your salary).

• How it Works: You contribute a portion of your paycheck, usually before taxes are taken out. Your money grows tax-deferred, meaning you don't pay taxes on the growth until you withdraw the money in retirement.
• Pros:
  • Employer Match: This is essentially free money! If your employer matches, it's a huge benefit.
  • High Contribution Limits: You can often contribute a significant amount each year.
  • Automatic Deductions: Contributions are automatically taken from your paycheck, making saving easy.
  • Tax Advantages: Contributions lower your taxable income in the year you make them.
• Cons:
  • Limited Investment Options: Your choices are usually limited to funds selected by your employer.
  • Early Withdrawal Penalties: If you withdraw money before age 59
    1/2, you typically pay a 10% penalty plus income taxes.
  • Taxes in Retirement: You'll pay income tax on withdrawals in retirement.

2. Individual Retirement Account (IRA)

An IRA is a personal retirement savings plan that you open and manage yourself, independent of an employer. You can contribute to an IRA even if you have a 401(k).

• How it Works: You contribute money, often tax-deductible, and it grows tax-deferred until you withdraw it in retirement. There are income limits for tax deductibility.
• Pros:
  • More Investment Choices: You typically have a wider range of investment options compared to a 401(k).
  • Tax-Deductible Contributions: Your contributions might reduce your taxable income now (depending on income and other retirement plans).
• Cons:
  • Lower Contribution Limits: IRAs generally have lower annual contribution limits than 401(k)s.
  • No Employer Match: You don't get free money from an employer match.
  • Early Withdrawal Penalties: Similar to a 401(k), early withdrawals can incur penalties and taxes.
  • Taxes in Retirement: You'll pay income tax on withdrawals in retirement.

3. Roth IRA

A Roth IRA is another type of individual retirement account, but it has a key difference: how your contributions are taxed.

• How it Works: You contribute money after taxes have already been paid. The money then grows tax-free, and qualified withdrawals in retirement are also tax-free.
• Pros:
  • Tax-Free Withdrawals in Retirement: This is a huge benefit, especially if you expect to be in a higher tax bracket in retirement.
  • Flexibility: You can withdraw your contributions (but not earnings) tax-free and penalty-free at any time.
  • No Age Limit for Contributions: You can continue to contribute as long as you have earned income.
• Cons:
  • No Upfront Tax Deduction: Your contributions don't lower your taxable income today.
  • Income Limitations: There are income limits to contribute directly to a Roth IRA.
  • Lower Contribution Limits: Similar to traditional IRAs, limits are lower than 401(k)s.

Retirement Savings: Dos and Don'ts

DOs:

• Start Early: The power of compound interest is your best friend. Even small amounts saved early can grow significantly.
• Contribute Regularly: Make saving a habit. Set up automatic contributions.
• Take Advantage of Employer Match: If your company offers a 401(k) match, contribute at least enough to get the full match – it's free money!
• Diversify Your Investments: Don't put all your eggs in one basket. Spread your investments across different types of assets.
• Review Your Plan Annually: Life changes, so should your retirement plan. Adjust contributions and investments as needed.

DON'Ts:

• Don't Wait: Delaying even a few years can cost you tens of thousands of dollars in potential growth.
• Don't Cash Out Early: Resist the temptation to withdraw from your retirement accounts before retirement. Penalties and lost growth can be substantial.
• Don't Ignore It: Even if you feel overwhelmed, take small steps to understand and contribute to your retirement savings.
• Don't Be Afraid to Ask for Help: Financial advisors can provide guidance on complex retirement planning.

Insurance Jargon Worksheet: Decoding Your Policy & Planning Your Future

Instructions: This worksheet will help you understand the key terms and purposes of different insurance types and retirement accounts. Read each section carefully and provide your answers in the space provided.

Part 1: Vocabulary Match-Up

Instructions: Match each vocabulary term in Column A with its correct definition in Column B. Write the letter of the definition next to the term.

Column A (Term)

1. Premium
   
2. Deductible
   
3. Liability Coverage
   
4. Collision Coverage
   
5. Comprehensive Coverage
   
6. Copay/Coinsurance
   
7. Dwelling
   
8. Personal Property
   
9. Beneficiary
   
10. Term Life Insurance
    
11. Whole Life Insurance
    
12. Short-Term Disability
    
13. Long-Term Disability
    
14. Waiting Period (Disability)
    
15. 401(k)
    
16. Traditional IRA
    
17. Roth IRA
    
18. Compound Interest
    

Column B (Definition)

A. The physical structure of a house.
B. The person or people designated to receive the payout from a life insurance policy.
C. Insurance that provides coverage for a specific period of time.
D. Coverage for damage to your own car from non-collision events like theft or natural disasters.
E. A fixed amount or percentage you pay for a medical service after your deductible.
F. The regular payment you make to an insurance company for coverage.
G. Insurance that provides coverage for your entire life.
H. Coverage for damage to your own car from an accident with another vehicle or object.
I. Your belongings inside a home, like furniture, electronics, and clothing.
J. Insurance that replaces a portion of your income for a shorter period, typically a few weeks to a few months.
K. The amount you pay out-of-pocket for a claim before insurance starts to pay.
L. Coverage that pays for damages to other people or their property if you are at fault in an accident.
M. An employer-sponsored retirement savings plan where contributions are often pre-tax and may include employer matching.
N. A personal retirement savings plan where contributions are made with after-tax money, and qualified withdrawals in retirement are tax-free.
O. The process of earning interest on both the initial principal and the accumulated interest from previous periods.
P. A personal retirement savings plan where contributions may be tax-deductible and money grows tax-deferred until retirement.
Q. Insurance that replaces a portion of your income for an extended period, potentially several years or up to retirement age.
R. The amount of time you have to wait after becoming disabled before disability benefits begin to be paid out.

Part 2: Insurance & Retirement Purpose Identification

Instructions: For each type of insurance or retirement account listed below, briefly explain its primary purpose in your own words. Why do people typically get this type of financial product?

1. Auto Insurance:
   
   
   
   
   
   

2. Health Insurance:
   
   
   
   
   
   

3. Homeowner's/Renter's Insurance:
   
   
   
   
   
   

4. Life Insurance:
   
   
   
   
   
   

5. Disability Insurance (Short-Term & Long-Term):
   
   
   
   
   
   

6. 401(k) Plan:
   
   
   
   
   
   

7. Roth IRA:
   
   
   
   
   
   

Insure Your Future: Making Smart Choices & Planning for Retirement Discussion Guide

Introduction: We've learned about various types of insurance, their basic purposes, and key retirement savings accounts. Now, let's discuss how this knowledge can help you make smart financial decisions for your future. Remember to listen respectfully to your classmates' perspectives.

Part 1: Your Future and Financial Needs

1. As you think about life after high school (e.g., going to college, starting a job, getting your own apartment), what type of insurance and what kind of retirement savings plan do you anticipate needing first? Why?
   
   
   
   
   
   
2. What is one financial risk you face or anticipate facing in the next 5-10 years? Which type of insurance do you think would be most helpful in mitigating that risk?
   
   
   
   
   
   
3. Why is it important to start saving for retirement as early as possible? How does the concept of compound interest play a role in this?
   
   
   
   
   
   

Part 2: Evaluating Financial Choices - Questions to Ask

Imagine you are shopping for an insurance policy (e.g., auto insurance for your first car, renter's insurance for your apartment) or considering opening a retirement account (e.g., a Roth IRA). What questions would you want to ask to make sure you're getting the right product at a fair value?

Key Questions to Consider:

• Cost: What is the monthly or annual premium/contribution? What are the deductibles, fees, or minimum contributions? How do these affect your current budget and long-term savings?
• Coverage/Benefits: What exactly does the policy/account cover or provide, and just as importantly, what does it not cover? Are there different levels of coverage or investment options available? What are the limits of coverage or withdrawal rules?
• My Needs: How much coverage or how much savings do I truly need based on my assets, income, lifestyle, and future goals? Does this product fit my budget and my specific situation?
• The Company/Institution: What is the reputation of the insurance company or financial institution? How easy is it to file a claim or manage your account? What do reviews say about their customer service?

My Insurance Snapshot Activity

Instructions: Now it's your turn to think about your own personal insurance needs! Complete the sections below, considering your current situation and your future aspirations. Use what you've learned about the different types of insurance.

Part 1: Current & Near-Future Insurance Needs

1. What type of insurance do you think would be most immediately useful to you in the next 1-3 years (e.g., getting a driver's license, starting a part-time job, moving out)? Explain your choice.
   
   
   
   
   
   
   

2. List three potential risks you might face in the next 1-3 years that could have a financial impact. For each risk, identify an insurance type that could help protect you.

   • Risk 1:
     
     
     Insurance Type:
     
     

   • Risk 2:
     
     
     Insurance Type:
     
     

   • Risk 3:
     
     
     Insurance Type:
     
     

Part 2: Future Financial Planning (5-10 Years Out) - Insurance Focus

Think about what your life might look like in 5-10 years (e.g., career, living situation, family). Which types of insurance do you anticipate needing then, and why?

1. Life Event/Goal: (e.g., Buying a house, starting a family, pursuing a specific career path)
   
   
   
   Relevant Insurance Types & Why:
   
   
   
   
   
   

2. Life Event/Goal: (e.g., Traveling internationally, starting your own business)
   
   
   
   Relevant Insurance Types & Why:
   
   
   
   
   
   

Part 3: Asking Smart Questions About Insurance

Imagine you are talking to an insurance agent about a policy you are interested in (e.g., health insurance). What are three specific questions you would ask to ensure you understand the policy, its costs, and its coverage?

1. Question 1:
   
   
   

2. Question 2:
   
   
   

3. Question 3:
   
   
   

Risk & Reward Matching Game

Instructions for Teachers:

1. Print and cut out all the cards below. Laminate for durability if desired.
2. Divide students into small groups (3-4 students per group).
3. Give each group a complete set of

Future Fortune Activity: Planning Your Retirement Dream

Instructions: Now that you've learned about different retirement savings accounts, it's time to envision your future and start thinking about how you'll get there! Answer the following questions thoughtfully.

Part 1: Envisioning Your Retirement

1. Describe what your ideal retirement might look like. What would you do? Where would you live? What experiences would you hope to have?
   
   
   
   
   
   
   

2. Why do you think it's important to start planning and saving for this future now, even if it's decades away? Refer to the concept of compound interest.
   
   
   
   
   
   
   

Part 2: Retirement Account Choices

Imagine you've landed your first full-time job after college.

1. Your employer offers a 401(k) plan with a 3% matching contribution. Explain what this means and why you should absolutely take advantage of it.
   
   
   
   
   
   
   

2. If you also wanted to save more on your own, would you lean towards a Traditional IRA or a Roth IRA? Explain your reasoning, considering the pros and cons of each and your expected financial situation early in your career vs. retirement.
   
   
   
   
   
   
   

Part 3: Retirement Dos and Don'ts - Personal Commitment

1. From the "Retirement Savings: Dos" list, choose one

Financial Literacy Answer Key

Worksheet: Insurance Jargon & Purpose Worksheet

Part 1: Vocabulary Match-Up

1. Premium: F. The regular payment you make to an insurance company for coverage.
2. Deductible: K. The amount you pay out-of-pocket for a claim before insurance starts to pay.
3. Liability Coverage: L. Coverage that pays for damages to other people or their property if you are at fault in an accident.
4. Collision Coverage: H. Coverage for damage to your own car from an accident with another vehicle or object.
5. Comprehensive Coverage: D. Coverage for damage to your own car from non-collision events like theft or natural disasters.
6. Copay/Coinsurance: E. A fixed amount or percentage you pay for a medical service after your deductible.
7. Dwelling: A. The physical structure of a house.
8. Personal Property: I. Your belongings inside a home, like furniture, electronics, and clothing.
9. Beneficiary: B. The person or people designated to receive the payout from a life insurance policy.
10. Term Life Insurance: C. Insurance that provides coverage for a specific period of time.
11. Whole Life Insurance: G. Insurance that provides coverage for your entire life.
12. Short-Term Disability: J. Insurance that replaces a portion of your income for a shorter period, typically a few weeks to a few months.
13. Long-Term Disability: Q. Insurance that replaces a portion of your income for an extended period, potentially several years or up to retirement age.
14. Waiting Period (Disability): R. The amount of time you have to wait after becoming disabled before disability benefits begin to be paid out.
15. 401(k): M. An employer-sponsored retirement savings plan where contributions are often pre-tax and may include employer matching.
16. Traditional IRA: P. A personal retirement savings plan where contributions may be tax-deductible and money grows tax-deferred until retirement.
17. Roth IRA: N. A personal retirement savings plan where contributions are made with after-tax money, and qualified withdrawals in retirement are tax-free.
18. Compound Interest: O. The process of earning interest on both the initial principal and the accumulated interest from previous periods.

Part 2: Insurance & Retirement Purpose Identification

(Note: Student answers may vary slightly but should capture the core concept.)

1. Auto Insurance: Its primary purpose is to protect you financially from the costs associated with car accidents (damages to others' property or your own car) or other vehicle-related issues like theft.
2. Health Insurance: Its primary purpose is to help cover the high costs of medical care, including doctor visits, hospital stays, and prescription medications, so you don't face significant financial burdens due to illness or injury.
3. Homeowner's/Renter's Insurance: Its primary purpose is to protect your dwelling (if you own) and your personal belongings from damage, theft, or liability if someone gets injured on your property. For renters, it specifically covers their possessions and liability.
4. Life Insurance: Its primary purpose is to provide financial support to your designated beneficiaries (loved ones) after your death, helping them cover expenses like funeral costs, debts, or ongoing living expenses.
5. Disability Insurance (Short-Term & Long-Term): Its primary purpose is to replace a portion of your income if you become unable to work for a period due to a qualifying illness or injury, ensuring you still have financial support when you can't earn a paycheck. Short-term covers brief periods, while long-term covers extended periods.
6. 401(k) Plan: Its primary purpose is to help employees save for retirement through payroll deductions, often with employer contributions, and benefit from tax-deferred growth.
7. Roth IRA: Its primary purpose is to allow individuals to save for retirement with after-tax contributions, enabling tax-free growth and tax-free withdrawals in retirement.

Risk & Reward Matching Game Answer Key

• Risk: You get into a car accident and cause significant damage to another driver's vehicle.
  • Insurance Type: Auto Insurance (specifically Liability Coverage)
• Risk: You break your leg and can't work for three months, losing your income.
  • Insurance Type: Short-Term Disability Insurance
• Risk: A fire damages your apartment building, and all your furniture and clothes are destroyed.
  • Insurance Type: Renter's Insurance
• Risk: You are diagnosed with a serious illness requiring expensive medical treatments and hospital stays.
  • Insurance Type: Health Insurance
• Risk: Your family relies on your income, and you pass away unexpectedly, leaving them without financial support.
  • Insurance Type: Life Insurance
• Risk: A tree falls on your house during a storm, causing extensive damage to the roof and a few rooms.
  • Insurance Type: Homeowner's Insurance
• Risk: Your new laptop is stolen from your locked apartment.
  • Insurance Type: Renter's Insurance (Personal Property Coverage)
• Risk: You require a routine check-up and some prescription medication.
  • Insurance Type: Health Insurance (Copay/Coinsurance)
• Risk: Someone slips and falls on the icy sidewalk in front of your house and sues you for their medical expenses.
  • Insurance Type: Homeowner's Insurance (Liability Coverage)
• Risk: Your car is vandalized while parked on the street.
  • Insurance Type: Auto Insurance (Comprehensive Coverage)
• Risk: A long-term illness prevents you from working for several years, severely impacting your ability to earn income.
  • Insurance Type: Long-Term Disability Insurance

Financial Future Reflection Cool Down: My Takeaways

Instructions: Take a few minutes to reflect on today's lesson about insurance and retirement planning. Please answer the following questions honestly and thoughtfully.

1. What is one new thing you learned about insurance today that you didn't know before?
   
   
   
   
   
   
   

2. What surprised you the most about the different types of insurance or how they work, or about retirement savings accounts?
   
   
   
   
   
   
   

3. Which type of insurance or retirement account do you think will be most important for you in the next 5-10 years, and why?
   
   
   
   
   
   
   

4. Complete the sentence stem: "One action I can take starting today to positively impact my long-term financial future is..."