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Insurance: Protect What You Have

Lesson 6-1 Manage Risk

Everyone thinks the odds of something bad happening are small—until something bad happens. Accidents and disasters can be frightening as well as have a negative impact your financial situation. Actions and choices you’re making right now will affect your ability to deal with the unexpected costs when something unfortunate occurs.

What You’ll Learn Assess your risk exposure and how insurance fits into your financial plan.

Taking it Home

  • Find out if your family has any of the following types of insurance: homeowners, renters, flood, pet or cellphone.
  • Identify three of your most valued or valuable possession(s). Research the current value of each item, and then compare that value to how much it would cost you to replace the item(s).

Learn More

  • If you like math and statistics, learn more about the “number ninjas” (aka actuaries) who study the likelihood that different events will occur and analyze the potential risks and costs of each event. Go to BeAnActuary.org to find out what an actuary does and what it takes to get a job that is in high demand within the insurance industry.
  • Check out interesting insurance-based facts and statistics at the Insurance Information Institute website. For example, what are the stats related to distracted driving or natural disasters?
  • At InsureUonline.org find insurance tips for young adults and games to show off what you know about insurance.

Related Resources

Find more helpful investing tips and tools from the Resource Library, including the following items: 

Talking Points for Parents

While your teen is learning about insurance, consider ways to reinforce learning from home.

  • Discuss with your teen the different kinds of insurance coverage you have and what you considered when deciding what to and what not to insure. (e.g., homeowners, renters, flood, pet, or umbrella).
  • With your teen, read through a homeowners’ or renter’s insurance policy so your teen is familiar with what is covered and not covered. Share an experience you had dealing with property loss or damage and what was involved for the insurance claim.
  • Ask your teen to demonstrate what he or she is learning in class, including the consequences of not being insured and how insurance works.