Understanding Financial Risks and Insurance: Course Overview

 
Financial Risks
and Insurance
 
9 Week Course
Outline
 
Overview
 
In this lesson we will be learning about financial decision making.
 
We will learn how to protect ourselves against fraud and financial scams.
We will learn the importance of mitigating financial  risks.
We will be able to identify common types of risks and basic risk management
methods.
We will learn the basics of insurance.
 
Unit
Objectives
Understand the impact of opportunity
cost when making financial decisions
Understand the financial risks of
investing money
Understand the importance of
insurance to mitigate risk
 
Unit 5.1 - Insurance Basics
 
9 Week Course
Outline
 
What is a Contract?
 
Key Terminology
 
A Contract is...
 
 A legally binding agreement between two parties (people, companies, or both) in
which something of value is exchanged. All the following elements are required for
a contract to be binding, along with the contract itself must be for something legal.
 
Key Terminology
 
What is Risk Aversion?
 
Key Terminology
 
Risk Aversion is...
 
The inclination to choose a more predictable option, with a possibly lower
payoff, than a course of action that is less predictable and therefore higher risk.
 
 
Key Terminology
 
What is Insurance?
 
Key Terminology
 
Insurance is...
 
An arrangement where a company or government agency provides a guarantee
of compensation for specified loss, damage, illness, or death in return for
payment of a premium.
 
Key Terminology
 
What is a Premium?
 
Key Terminology
 
A Premium is...
 
The amount of money paid to the insurance company for the insurance policy
you are purchasing.
 
Key Terminology
 
What is a Deductible?
 
Key Terminology
 
A Deductible is...
 
The amount of money you will pay on an insurance claim before the coverage
kicks in and pays the rest.
 
Key Terminology
 
What is a Claim?
 
Key Terminology
 
A Claim is...
 
A formal request by a policyholder to an insurance company for coverage or
compensation for a covered loss or policy event.
 
Key Terminology
 
Up Next!
 
Class Activity
 
Watch Intro to Insurance Video
 
Up Next!
 
Contracts & Risk
 
Intro to Insurance
 
In what ways could your actions cause your insurance premium to
increase?
 
Challenge Questions
 
Contracts (personalfinancelab.com)
Risk (personalfinancelab.com)
 
Intro to Insurance
 
In what way are you able to reduce your insurance premium?
 
Challenge Questions
 
Contracts (personalfinancelab.com)
Risk (personalfinancelab.com)
 
Intro to Insurance
 
Using examples, explain what a deductible is.
 
Challenge Questions
 
Contracts (personalfinancelab.com)
Risk (personalfinancelab.com)
 
Intro to Insurance
 
Explain what is meant by the term premium when discussing insurance.
 
Challenge Questions
 
Contracts (personalfinancelab.com)
Risk (personalfinancelab.com)
 
Intro to Insurance
 
What do you value enough to get insurance to cover it if it’s damaged?
 
Challenge Questions
 
Contracts (personalfinancelab.com)
Risk (personalfinancelab.com)
 
Intro to Insurance
 
In your opinion are you for or against insurance and why?
 
Challenge Questions
 
Contracts (personalfinancelab.com)
Risk (personalfinancelab.com)
 
Homework
 
Budget Game
 
Unit 5.2 - Liability
Insurance
 
9 Week Course
Outline
 
What is Liability Insurance?
 
Key Terminology
 
Liability Insurance is...
 
For the protection against third-party insurance claims. For instance, someone
suffering a loss who is not a party to the insurance contract.
 
Key Terminology
 
What are Coverage Limits?
 
Key Terminology
 
Coverage Limits are...
 
The maximum the insurance company will pay for a certain occurrence or claim.
 
Key Terminology
 
What is Replacement Cost Value?
 
Key Terminology
 
Replacement Cost Value...
 
Pays you the amount of money needed to cover the replacement of your
possessions at current market prices.
 
Key Terminology
 
What is the Actual Cash Value?
 
Key Terminology
 
Actual Cash Value is when...
 
Your insurance company will estimate the current value of your items, not the
price you paid when you purchased them.
 
Key Terminology
 
What is the difference between Tort State
and No-Fault State?
 
Key Terminology
 
Tort State means...
 
At-fault drivers in a crash are responsible for paying the other driver's medical
expenses and damages. The at-fault driver must also pay for additional damages,
such as loss of wages and "pain and suffering."
 
Key Terminology
 
No-Fault means...
 
Regardless of who caused the incident, everyone is required to file a claim with
their own insurance.
 
Key Terminology
 
Up Next!
 
Types of Insurance
 
Challenge Questions
 
Types of Insurance
 
What is Renter’s Insurance for?
 
Rental Insurance (personalfinancelab.com)
Homeowner’s Insurance (personalfinancelab.com)
Car Insurance (personalfinancelab.com)
 
Challenge Questions
 
Types of Insurance
 
What is the purpose of homeowners insurance?
 
Rental Insurance (personalfinancelab.com)
Homeowner’s Insurance (personalfinancelab.com)
Car Insurance (personalfinancelab.com)
 
Challenge Questions
 
Types of Insurance
 
Give examples of the type of things that a homeowner policy will cover?
 
Rental Insurance (personalfinancelab.com)
Homeowner’s Insurance (personalfinancelab.com)
Car Insurance (personalfinancelab.com)
 
Challenge Questions
 
Types of Insurance
 
What is meant by coverage limits?
 
Rental Insurance (personalfinancelab.com)
Homeowner’s Insurance (personalfinancelab.com)
Car Insurance (personalfinancelab.com)
 
Homework
 
Stock Game
 
Manage Team Portfolios
 
Unit 5.3 - Health and Life
Insurance
 
9 Week Course
Outline
 
What is Life Insurance for?
 
Key Terminology
 
Life Insurance...
 
Pays out a sum of money either on the death of the insured person or after a set
period.
 
Key Terminology
 
Who is the Policy Owner?
 
Key Terminology
 
A Policy Owner is...
 
The person who is responsible for paying the premiums on the policy and is the
legal owner of the policy.
 
 
Key Terminology
 
What is the difference between the Insurer
and the Insured?
 
Key Terminology
 
The Insurer is...
 
The insurance company, the entity the policy owner pays in exchange for life
insurance coverage.
 
Key Terminology
 
The Insured is...
 
This is the individual whose life is actually being insured. If this person dies, the
Insurer will pay out the death benefits.
 
Key Terminology
 
Up Next!
 
Health & Life Insurance
 
Challenge Questions
 
Health & Life Insurance
 
What is coinsurance?
 
Protecting Against Fraud (personalfinancelab.com)
Health Insurance (personalfinancelab.com)
Life Insurance (personalfinancelab.com)
 
Challenge Questions
 
Health & Life Insurance
 
What are co-payments?
 
Protecting Against Fraud (personalfinancelab.com)
Health Insurance (personalfinancelab.com)
Life Insurance (personalfinancelab.com)
 
Challenge Questions
 
Health & Life Insurance
 
What are in-network healthcare providers?
 
Protecting Against Fraud (personalfinancelab.com)
Health Insurance (personalfinancelab.com)
Life Insurance (personalfinancelab.com)
 
Challenge Questions
 
Health & Life Insurance
 
What is disability insurance for?
 
Protecting Against Fraud (personalfinancelab.com)
Health Insurance (personalfinancelab.com)
Life Insurance (personalfinancelab.com)
 
Homework
 
Budget & Stock Game
 
Prepare Final Reports
 
Unit 5.4 - Financial
Decision Making
 
9 Week Course
Outline
 
Up Next!
 
Class Activity
 
Watch video on financial aid myths
 
Up Next!
 
Class Activity
 
Final Group Presentations
 
Homework
 
When to Hire
 
A Tax Professional
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Learn about financial decision-making, protecting against fraud, and mitigating financial risks in this 9-week course. Explore the basics of insurance, including key terminology such as contracts, risk aversion, and premiums. Understand the importance of insurance in managing financial risks and investing wisely.


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  1. Financial Risks and Insurance 9 Week Course Outline

  2. Overview In this lesson we will be learning about financial decision making. We will learn how to protect ourselves against fraud and financial scams. We will learn the importance of mitigating financial risks. We will be able to identify common types of risks and basic risk management methods. We will learn the basics of insurance.

  3. Unit Objectives Understand the impact of opportunity cost when making financial decisions Understand the financial risks of investing money Understand the importance of insurance to mitigate risk

  4. Unit 5.1 - Insurance Basics 9 Week Course Outline

  5. Key Terminology What is a Contract?

  6. Key Terminology A Contract is... A legally binding agreement between two parties (people, companies, or both) in which something of value is exchanged. All the following elements are required for a contract to be binding, along with the contract itself must be for something legal.

  7. Key Terminology What is Risk Aversion?

  8. Key Terminology Risk Aversion is... The inclination to choose a more predictable option, with a possibly lower payoff, than a course of action that is less predictable and therefore higher risk.

  9. Key Terminology What is Insurance?

  10. Key Terminology Insurance is... An arrangement where a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.

  11. Key Terminology What is a Premium?

  12. Key Terminology A Premium is... The amount of money paid to the insurance company for the insurance policy you are purchasing.

  13. Key Terminology What is a Deductible?

  14. Key Terminology A Deductible is... The amount of money you will pay on an insurance claim before the coverage kicks in and pays the rest.

  15. Key Terminology What is a Claim?

  16. Key Terminology A Claim is... A formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.

  17. Up Next! Class Activity Watch Intro to Insurance Video

  18. Up Next! Contracts & Risk

  19. Challenge Questions Intro to Insurance In what ways could your actions cause your insurance premium to increase? Contracts (personalfinancelab.com) Risk (personalfinancelab.com)

  20. Challenge Questions Intro to Insurance In what way are you able to reduce your insurance premium? Contracts (personalfinancelab.com) Risk (personalfinancelab.com)

  21. Challenge Questions Intro to Insurance Using examples, explain what a deductible is. Contracts (personalfinancelab.com) Risk (personalfinancelab.com)

  22. Challenge Questions Intro to Insurance Explain what is meant by the term premium when discussing insurance. Contracts (personalfinancelab.com) Risk (personalfinancelab.com)

  23. Challenge Questions Intro to Insurance What do you value enough to get insurance to cover it if it s damaged? Contracts (personalfinancelab.com) Risk (personalfinancelab.com)

  24. Challenge Questions Intro to Insurance In your opinion are you for or against insurance and why? Contracts (personalfinancelab.com) Risk (personalfinancelab.com)

  25. Homework Budget Game

  26. Unit 5.2 - Liability Insurance 9 Week Course Outline

  27. Key Terminology What is Liability Insurance?

  28. Key Terminology Liability Insurance is... For the protection against third-party insurance claims. For instance, someone suffering a loss who is not a party to the insurance contract.

  29. Key Terminology What are Coverage Limits?

  30. Key Terminology Coverage Limits are... The maximum the insurance company will pay for a certain occurrence or claim.

  31. Key Terminology What is Replacement Cost Value?

  32. Key Terminology Replacement Cost Value... Pays you the amount of money needed to cover the replacement of your possessions at current market prices.

  33. Key Terminology What is the Actual Cash Value?

  34. Key Terminology Actual Cash Value is when... Your insurance company will estimate the current value of your items, not the price you paid when you purchased them.

  35. Key Terminology What is the difference between Tort State and No-Fault State?

  36. Key Terminology Tort State means... At-fault drivers in a crash are responsible for paying the other driver's medical expenses and damages. The at-fault driver must also pay for additional damages, such as loss of wages and "pain and suffering."

  37. Key Terminology No-Fault means... Regardless of who caused the incident, everyone is required to file a claim with their own insurance.

  38. Up Next! Types of Insurance

  39. Challenge Questions Types of Insurance What is Renter s Insurance for? Rental Insurance (personalfinancelab.com) Homeowner’s Insurance (personalfinancelab.com) Car Insurance (personalfinancelab.com)

  40. Challenge Questions Types of Insurance What is the purpose of homeowners insurance? Rental Insurance (personalfinancelab.com) Homeowner’s Insurance (personalfinancelab.com) Car Insurance (personalfinancelab.com)

  41. Challenge Questions Types of Insurance Give examples of the type of things that a homeowner policy will cover? Rental Insurance (personalfinancelab.com) Homeowner’s Insurance (personalfinancelab.com) Car Insurance (personalfinancelab.com)

  42. Challenge Questions Types of Insurance What is meant by coverage limits? Rental Insurance (personalfinancelab.com) Homeowner’s Insurance (personalfinancelab.com) Car Insurance (personalfinancelab.com)

  43. Homework Stock Game Manage Team Portfolios

  44. Unit 5.3 - Health and Life Insurance 9 Week Course Outline

  45. Key Terminology What is Life Insurance for?

  46. Key Terminology Life Insurance... Pays out a sum of money either on the death of the insured person or after a set period.

  47. Key Terminology Who is the Policy Owner?

  48. Key Terminology A Policy Owner is... The person who is responsible for paying the premiums on the policy and is the legal owner of the policy.

  49. Key Terminology What is the difference between the Insurer and the Insured?

  50. Key Terminology The Insurer is... The insurance company, the entity the policy owner pays in exchange for life insurance coverage.

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