What is Insurance

What is Insurance

Do you ever wonder about why insurance is so important, especially in countries like the U.S.?

What types of insurance are there?  Why do we need it? How much does it cost?

This article covers basic information about insurance, so that you can be prepared and plan for your future.

Vocabulary Words

How many of these words do you know?

Write down your definitions, ask a friend or teacher, or check a dictionary.

• financial

• risk

• policy

• policy holder

• insured

• premium

• deductible

• disability

• coverage

• vehicle

Reading Time

Here’s an excerpt from today’s article.  This will give you a quick idea of what the article is about.

Insurance is a way to manage your risk. When you buy insurance,you purchase protection against unexpected financial losses.The insurance company pays you or someone you choose ifsomething bad happens to you.

Click on the link for the full article:  What is Insurance?

Source:  Building Blocks Student Handout

Comprehension Check

What did you learn from the article?

Summarize the main ideas with a partner.

Remember to review the vocabulary words above and use them in your explanations.

Explain the following:

1. How does insurance reduce your financial risk?

2. How do insurance policies work?

3. What are the main types of insurance?

4. What should you consider when buying insurance?

5. What new things did you learn about insurance?