Protect yourself: lesson plans
Insurance, scams and the safety nets that keep one bad day from becoming a bad year. 12 lessons, about 45 minutes each, in the order students should take them.
- 1
How does insurance work?
You pay a premium, cover the deductible yourself, and the insurer pays the rest of a covered loss up to the limit.
Students will be able to
- Insure the losses you could never pay.
- The deductible is your share of each claim.
- The limit is the most a policy pays.
45-minute plan
- Warm-up (5 min): is this true? "Insurance is a waste of money if I never file a claim."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Find the declarations page for each policy you have, often in the insurer's app or website. Write down the premium, deductible and limits for each, and check that your emergency fund could cover the largest deductible.
- 2
How does an insurance deductible work?
Your deductible is what you pay first on a claim. Choose the highest one your emergency fund can cover.
Students will be able to
- You pay the deductible, then insurance pays.
- A higher deductible means a lower premium.
- Only pick a deductible you can pay.
45-minute plan
- Warm-up (5 min): is this true? "A low deductible is always the safer choice."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Pull up the declarations page for your car or renters policy and write down each deductible. Then ask your insurer for the premium at the next deductible up, and work out your break-even years.
- 3
How does health insurance work?
Your premium keeps the plan. The deductible, copays and coinsurance are your share of care, capped by the out-of-pocket maximum.
Students will be able to
- The premium is the price of the plan.
- You pay the deductible before coinsurance starts.
- The out-of-pocket maximum is your yearly ceiling.
45-minute plan
- Warm-up (5 min): is this true? "Once I pay my deductible, insurance covers everything."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Log in to your plan or find its summary of benefits and coverage. Write down your premium, deductible, coinsurance, copays and out-of-pocket maximum, and check how much of the deductible you have met this year.
- 4
How does COBRA health insurance work?
COBRA keeps your old work health plan for up to 18 months, but you pay the full premium plus 2%.
Students will be able to
- COBRA can cost the full premium plus 2%.
- You have at least 60 days to choose.
- Losing job coverage opens a Marketplace window.
45-minute plan
- Warm-up (5 min): is this true? "If I lose my job, COBRA is my only way to stay insured."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Find your COBRA election notice and write down the monthly premium and the election deadline. Then get a Marketplace quote at HealthCare.gov using your expected income for this year, and compare the two side by side.
- 5
Do you need renters insurance?
Renters insurance covers your belongings, your liability and extra living costs. Your landlord's policy covers the building, not your stuff.
Students will be able to
- Your landlord's policy does not cover your things.
- Replacement cost pays far more than cash value.
- Liability coverage protects your savings.
45-minute plan
- Warm-up (5 min): is this true? "My landlord's insurance already covers my stuff."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Spend 15 minutes filming every room, closet and drawer in your home and save the video online. If you don't have a policy, request two quotes with replacement cost coverage and the same deductible.
- 6
How much car insurance do I need?
Buy liability limits well above your state minimum, then add collision and comprehensive only if you couldn't replace the car yourself.
Students will be able to
- Liability pays for harm you cause.
- Collision and comprehensive fix your car.
- State minimums vary and are often low.
45-minute plan
- Warm-up (5 min): is this true? "The state minimum is all I need. That's what the law says."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Find your policy's declarations page and write down your liability limits and deductibles. Then ask your insurer for a quote at 100/300/100 liability with a deductible your emergency fund can cover, and compare the yearly difference.
- 7
How much term life insurance do I need?
If someone relies on your income, buy term coverage until your kids are grown, often 5 to 8 times your pay.
Students will be able to
- You need it when someone depends on you.
- Size it from real needs.
- Match the term to the need.
45-minute plan
- Warm-up (5 min): is this true? "Life insurance is something you buy when you're old."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Write down your yearly income × the years your family would need it, add your debts and kids' costs, then subtract savings and any work coverage. Request three quotes for that amount and a term that lasts until your youngest is grown.
- 8
Do I need disability insurance?
If you live on your paycheck, get long-term disability coverage that replaces about 60% of pay, starting with your employer's plan.
Students will be able to
- It replaces part of your pay.
- Long-term coverage is the one to have.
- Your emergency fund covers the wait.
45-minute plan
- Warm-up (5 min): is this true? "If I get hurt and can't work, Social Security disability will cover me."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Open your benefits portal and find your long-term disability plan. Write down the percent of pay, the monthly cap and the waiting period, then multiply your monthly essentials by the months of waiting to see the cash you need on hand.
- 9
How to spot and avoid money scams
Scammers rush you and ask for gift cards, wires, payment apps or crypto. Stop, verify on your own, and report to ReportFraud.ftc.gov.
Students will be able to
- Real organizations never demand gift card payments.
- A deposited check can still bounce later.
- Act fast if you paid a scammer.
45-minute plan
- Warm-up (5 min): is this true? "I'm too careful to ever fall for a scam."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Agree on a family code word to use if anyone calls claiming to be a relative in trouble. Then save your bank's real phone number in your contacts and bookmark ReportFraud.ftc.gov.
- 10
What to do if your identity is stolen
Call the company, place a fraud alert, report it at IdentityTheft.gov, then freeze your credit. Speed limits what you can lose.
Students will be able to
- Call the company where fraud happened first.
- Report it at IdentityTheft.gov.
- Speed caps your debit card loss.
45-minute plan
- Warm-up (5 min): is this true? "If a thief drains my debit card, the money is just gone."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Freeze your credit at all three bureaus, then request an IRS identity protection PIN through your IRS online account. Together they take about 30 minutes and block new accounts and fake tax returns in your name.
- 11
How to name a beneficiary on your accounts
Name a primary and a backup beneficiary on every retirement account, policy and bank account, and update them after life changes.
Students will be able to
- The beneficiary form usually overrides your will.
- Always name a backup.
- Update after every big change.
45-minute plan
- Warm-up (5 min): is this true? "My will says who gets everything, so I don't need to fill out beneficiary forms."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): List every retirement account, life insurance policy and bank account you have. Log in to each one, check the beneficiary section, and add or fix a primary and a contingent beneficiary with shares that add up to 100%.
- 12
Do I need a will?
With kids, an unmarried partner or things you care about, write a will. It is how you name a guardian.
Students will be able to
- Without a will, state law decides.
- A will is how you name a guardian.
- Some things skip the will.
45-minute plan
- Warm-up (5 min): is this true? "Wills are for rich people. I don't own enough to need one."
- Read the lesson together (10 min)
- Work the example on the worksheet (10 min)
- Practice questions (10 min)
- Exit task (10 min): Write three names on paper: your executor, your guardian for any children, and a backup for each. Then list what you own in your name alone and check your state's signing rules before you draft the will.
Unit vocabulary
Free to print, copy and share for non-commercial classroom use. General education, not personalized financial, tax or legal advice. Figures are examples. Check current rates and limits before you act.