Cogito
Consumer Math · Chapter 7 · Lesson 2
Types of Insurance
Which policies actually matter.
12 problems · about 20 minutes · TEKS M.M.7.B
What this lesson teaches
The student identifies common insurance types and evaluates which are necessary.
- Health, auto liability and renter or home cover are the essentials.
- Liability matters most, because the loss it covers has no ceiling.
- Life insurance protects dependants; disability protects your own income.
Warm Up
Straightforward practice. Get the method working first.
5 problemsHealth insurance at $250 a month. Annual premium in dollars?
Answer 3000
Why $3000.
Why is liability the critical part of an auto policy?
Answer Damage you cause others has no ceiling.
Why The potential loss is unbounded.
Which covers your belongings as a tenant? 1 renter, 2 home.
Answer 1
Why The building is not yours.
Which replaces income if you cannot work? 1 life, 2 disability.
Answer 2
Why You are still alive.
Health insurance at $300 a month. Annual premium in dollars?
Answer 3600
Why 300 × 12.
Build It Up
The same ideas with more to keep track of.
3 problemsAuto at $100 a month. Annual premium in dollars?
Answer 1200
Why 100 × 12.
Does someone with no dependants usually need life insurance? 1 yes, 0 no.
Answer 0
Why It protects dependants.
Which auto coverage has no ceiling on the loss? 1 liability, 2 collision.
Answer 1
Why Your own car is worth a fixed maximum.
Stretch Yourself
Mixed problems. Work out what kind of question it is before you start.
4 problemsMatch each insurance type with what it protects.
Answer Health → Medical care costs; Liability → Damage you cause others; Disability → Your income if you cannot work
Why One of these protects other people rather than you.
Renter insurance at $18 a month. Annual premium in dollars?
Answer 216
Why 18 × 12.
The Premium: Renter insurance at $200 a year for 5 years. Total in dollars?
Answer 1000 dollars
Why $1000.
The Coverage: Which insurance covers damage you cause to others? 1 liability, 2 collision.
Answer 1
Why Liability.