Lesson Notes By Weeks and Term - Senior Secondary 1

Benefits of insurance

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Term – 1st Term

Week: 6

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Benefits of insurance

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. State the benefits of insurance to individuals
  2. State the benefits of insurance to business organizations and the society

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on the essential features of an insurance contract

Students pay attention

STEP 2

EXPLANATION

He states and explains the benefits of insurance to individuals

 

Students pay attention and participates

STEP 3

DEMONSTRATION

He states and explains the benefits of insurance to business organizations and the society

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

Benefits of insurance to individuals

  1. The payment of losses. An insurance policy is a contract used to

indemnify individuals for covered losses.

  1. It creates employment opportunities
  2. It promotes savings for lean times in the future.
  3. It creates avenue for income and profit to shareholders through

dividends

  1. It serves as a useful device for solving complex social problems.
  2. It ensures compliance with legal requirements. Insurance meets

statutory and contractual requirements as well as provides evidence of

financial resources.

  1. Promoting risk control activity. Insurance policies provide incentives to

implement a loss control program because of policy requirements and

premium savings incentives.

  1. Efficient use of an insured's resources. Insurance makes it unnecessary

to set aside a large amount of money to pay for the financial consequences

of the risk exposures that can be insured. This allows that money to be

used more efficiently

 

Benefits of insurance to business organisations

  1. Insurance helps to maintain correct distribution of cost.
  2. Modern business depends largely on credit; insurance increases the

credit worthiness of the assured person because it can provide funds for

repayment if he dies.

  1. The growth of international trade of the country has been greatly helped

by shifting of risk to insurance companies. A fire breaks out and burns to

ashes all the merchandise of a business man. But insurance is one of the

devices by which these risks may be reduced or eliminated.

  1. Insurance also helps in achieving favourable allocation of the factors of

production.

  1. Insurance enables small business units to compete upon more equal

terms with bigger organisations.

Benefits of insurance to the society

  1. Insurance ensures productive utilization of funds. This facilitates the

overall development of the economy.

  1. Insurance protects the society’s wealth through the various types of

insurance schemes.

  1. It removes and reduces social evils that are meant to alleviate.
  2. It helps to maintain standard of living; insurance rescues many people in

the society who are rendered destitute through misfortune.

  1. Insurance provides social security benefits; it plays a pivotal role in

fulfilling certain needs for which state might have to provide. The provision

for old age, sickness and disability of persons in general. Those who have

their insurance do not become a burden on state insurance plan. In case of

fire, explosions and other calamities that would tend to impoverish (render

poor) families would have been relieved of the financial loss if adequate

insurance had been maintained.

  1. It ensures equitable distribution of loss; insurance distributes the cost of

accidental events in an equitable manner.

EVALUATION:    1. State three benefits of insurance to

                       a. individuals

                       b. business organizations

                       c. society

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively