Insurance Basics

45-minute agenda

1. 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.

2. 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.

3. 17–22 min

   Worked example

   Walk through “Choosing a plan” on the slides. Pause before the result and ask students to predict it.

4. 22–32 min

   Split the Bill

   Format: pairs · 10 minutes

   1. Plan: $1,000 deductible, 20% coinsurance, $4,000 out-of-pocket maximum.
   2. Bill 1: a $3,000 hospital bill. Pairs calculate what they pay and what insurance pays.
   3. Bill 2: a $30,000 surgery. Pairs calculate, then apply the out-of-pocket maximum.
   4. 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.

5. 32–37 min

   Check for understanding

   Use the question slides — or run them as a Four Corners game. Answers:

   1. How much do you pay? — C. $1,800
   2. Under the Affordable Care Act, you can generally stay on a parent's health plan until age 26. — True
   3. What's usually true about premiums and deductibles? — A. Lower premiums usually come with higher deductibles.
6. 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?
7. 42–45 min

   Exit ticket

   Prompt: What's the difference between a premium and a deductible?

   Answer: The premium is what you pay regularly to have insurance. The deductible is what you pay for care before insurance starts paying.