Lesson Plan for Senior Secondary 1 - Insurance - Insurance Premium

### Lesson Plan: Understanding Insurance Premium **Grade Level: Senior Secondary 1** #### **Subject:** Commerce / Economics **Topic:** Insurance Premium **Duration:** 60 minutes **Objective:** - To understand the concept of insurance premiums. - To identify factors that influence insurance premiums. - To calculate simple insurance premiums. - To appreciate the importance of paying insurance premiums. **Materials:** - Whiteboard and markers - Projector and computer (for presentation) - Handouts with key notes and example exercises - Calculators - Internet access (optional) #### **Lesson Outline:** **1. Introduction (10 minutes)** - Welcome students and briefly outline the day's topic. - Start with an engaging question: "What do you know about insurance?" Allow a few minutes for students to share their thoughts. - Provide a brief overview of what insurance is (a risk management tool that provides financial protection against potential future losses). **2. Explanation of Insurance Premium (15 minutes)** - Define 'insurance premium': The amount of money that an individual or business must pay for an insurance policy. - Use a simple analogy (e.g., "Insurance premium is like paying a subscription to Netflix. It's a regular payment made to ensure you have access to the service.") - Show a short video clip (3-5 minutes) on the basics of insurance premiums (if available). **3. Factors Influencing Insurance Premiums (15 minutes)** - Discuss various factors that affect insurance premiums. These may include: - Age and health status - Type of insurance (health, auto, life, etc.) - Coverage amount - Location - Driving record (for auto insurance) - Occupation and hobbies - Present real-life examples to help students grasp the concept (e.g., a 25-year-old healthy person paying lower life insurance premiums compared to a 50-year-old smoker). **4. Calculation of Insurance Premiums (15 minutes)** - Provide a step-by-step method to calculate simple insurance premiums. - Example problem: "John, a 30-year-old non-smoker, buys a $100,000 life insurance policy with a premium rate of $5 per $1,000 of coverage annually. Calculate his annual premium." - Solution: Coverage amount = $100,000 / $1,000 = 100 units Premium per unit = $5 Annual Premium = 100 * $5 = $500 - Distribute handouts with additional practice problems and have students work in pairs to solve them. - Review the answers as a class. **5. Importance of Paying Insurance Premiums (5 minutes)** - Discuss the significance of paying premiums consistently to ensure continued coverage and financial protection. - Highlight consequences of missed payments (policy lapsing, loss of coverage). **6. Q&A and Recap (5 minutes)** - Open the floor for any questions and clarifications. - Recap key points: definition of insurance premium, factors affecting premiums, calculations, and the importance of regular payments. **7. Homework Assignment (Optional)** - Assign a brief essay: "Why is it important to consider various factors when choosing an insurance policy and calculating premiums?" #### **Assessment:** - Monitor student participation and understanding during class exercises. - Collect and review the practice problems worked on in pairs. - Evaluate the optional homework assignment for comprehension and articulation. **Extension/Follow-up Activities:** - Invite a guest speaker from the insurance industry to provide deeper insights. - Organize a simulation activity where students can role-play as insurance agents and clients to further understand premium calculations and negotiations.