Grade 4 Lesson 1: Insurance

After completing 7 short lessons covering key #financialliteracy topics for grade 3 students (7-year-olds), today we start our short lessons for grade 4 students (8-year-olds) with our first topic - #insurance

Insurance is something that protects you #financially against a #loss. This means that if something goes wrong and you end up making a loss, the insurance will help you out.

The way insurance works is that you pay a #premium (i.e. a specific amount of money) to a company called the #InsuranceCompany. This premium ensures that the insurance company will protect you. Thus, the insurance company will pay you if whatever you have insured gets damaged, destroyed or stolen.

Most things of value can be covered by insurance. For example, a house, the contents of the house or whatever’s inside the house, a car or someone’s life.

The premium that you pay is typically determined by the perceived value of the #assets you are trying to cover, the inherent #risk, your behavior etc..

Everyone should have insurance. And depending on what you own and whether you have any dependents, you can have different kinds of insurance or multiple kinds of insurance.

ayu ecosystem #kids #finance

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