Insurance & Risk
📋 What it is
Insurance spreads risk: many pay a small premium so an unlucky few are covered.
🗣️ Coach says
Insurance is teamwork against bad luck. Everyone pays a small amount (a premium); the pool pays out to whoever has an accident. You hope you never need it, but it protects against a big surprise cost.
🧠 Memory hook
Insurance = many pay a little so an unlucky few are covered. Trading a small sure cost for protection.
😂 Giggle
Why did the stock market go up and down?
It was just going through some changes — also known as volatility!
😲 Whoa!
The first insurance grew up in coffee houses where ship owners shared the risk of a voyage — spreading a possible big loss across many.
✅ Quick check: Why do people pay for insurance they hope to never use?
Say your answer out loud first — then reveal.
To protect against a rare but huge cost; the small premium is worth the safety.
Insurance trades a small certain cost for protection from a large uncertain one.
🧪 Try it! (2 minutes)
List 3 things people insure (a bike, a phone, a home) and why a big loss would hurt.