Lesson plan · Money After High School · Lesson 7
Insurance Basics
Health, auto, and renters insurance; premiums and deductibles.
- 45 minutes
- Grades 9–12
- Beginner
- Activity: pairs
Objectives
Students will be able to:
- Define premium, deductible, coinsurance, and out-of-pocket maximum
- Calculate what you pay on a medical bill
- Compare two insurance plans for different needs
Materials
- Slide deck and a projector
- Worksheet (one per student)
- Exit ticket slips (bottom of the worksheet)
Standards
- National Standards for Personal Financial Education (2021)
- Managing Risk
- Texas TEKS §113.76 Personal Financial Literacy and Economics
- (9) The student recognizes financial risks faced by individuals and families and identifies strategies for handling these risks to avoid potential loss of assets and earning potential.
Topic-level alignment by FLC. How we map standards
Background reading
The official sources this lesson is based on.
- Health Insurance Coverage for Children and Young Adults Under 26 (opens in a new tab) · healthcare.gov
- Deductible (glossary) (opens in a new tab) · healthcare.gov
- Premium (glossary) (opens in a new tab) · healthcare.gov
- Renters Insurance (opens in a new tab) · iii.org
45-minute agenda
0–5 min
Warm-up
Post: “Why would anyone pay for insurance every month if they might never use it?”
Teacher note: It trades a small, certain cost for protection from a large, uncertain one.
5–17 min
Direct instruction
Present the lesson slides. Make sure students leave with these points:
- Premium = regular cost. Deductible = you pay first.
- Coinsurance = your share after the deductible.
- Out-of-pocket max caps your yearly costs.
- Parent's health plan until 26 (generally).
- Keep your deductible in your emergency fund.
Use the “See it” slide (How a medical bill gets split) to make the idea visual.
17–22 min
Worked example
Walk through “Choosing a plan” on the slides. Pause before the result and ask students to predict it.
22–32 min
Split the Bill
Format: pairs · 10 minutes
- Plan: $1,000 deductible, 20% coinsurance, $4,000 out-of-pocket maximum.
- Bill 1: a $3,000 hospital bill. Pairs calculate what they pay and what insurance pays.
- Bill 2: a $30,000 surgery. Pairs calculate, then apply the out-of-pocket maximum.
- Discuss why the deductible belongs in the emergency fund.
What to look for: Bill 1: you pay $1,000 + 20% of $2,000 = $1,400; insurance pays $1,600. Bill 2: $1,000 + 20% of $29,000 = $6,800, capped at $4,000; insurance pays $26,000.
32–37 min
Check for understanding
Use the question slides — or run them as a Four Corners game. Questions:
- How much do you pay?
- Under the Affordable Care Act, you can generally stay on a parent's health plan until age 26.
- What's usually true about premiums and deductibles?
37–42 min
Discussion
- Would you choose a low premium or a low deductible? Why?
- Why do you think young, healthy people sometimes skip insurance? What's the risk?
42–45 min
Exit ticket
Prompt: What's the difference between a premium and a deductible?
Differentiation
Common misconception
“Insurance pays for everything once I have it.” You still pay deductibles, coinsurance, and copays up to the out-of-pocket maximum.
Support
Draw the bill as a bar split into “you pay” and “insurance pays” sections.
Extension
Calculate the total yearly cost (premiums + expected out-of-pocket) for two plans for a person with one $3,000 bill.
Homework or make-up work
Students can complete the full interactive lesson — including its knowledge check — at learnwithflc.org/courses/money-after-high-school/insurance. No account needed; progress saves on their device.