The High School Financial Planning Program® (HSFPP) will be retiring on July 31, 2021. Learn more about this decision.

Insurance: Protect What You Have

Lesson 6-2 How Insurance Works

Before you can be a savvy insurance consumer, you need to crack the code on a few common terms and how insurance works. This will help you when deciding what type of insurance you need or when filing an insurance claim. When you are ready to talk to an insurance company representative, you will be prepared to answer and ask questions with confidence.

What You’ll LearnInvestigate how insurance works.

Taking it Home:

  • 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:

  • 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 find insurance tips for young adults and games to show off what you know about insurance.

Related Resources:

Talking Points for Parents:

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

  • With your teen, read through a medical or dental insurance policy so your teen is familiar with what is covered and not covered. 
  • Share an experience you had dealing with an injury or major medical expenses and describe the resulting costs or any inconveniences.