🎯 Goal: Know common insurance types (health, accident, property, life) and choose by the big risks to cover.
Insurance shares big risks: pay small premiums so a big event does not ruin you. Prioritize large, sudden risks (serious illness, accidents).
Let’s explore
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Health insurance covers serious illness/hospital — usually a top priority.
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Choose insurance for large, rare, costly risks, not every small one.
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Read terms: what is covered, exclusions, limits.
Practice activity
🤔 Which risk to insure first: losing a pen or a hospital stay for serious illness?
Worked example: Losing a pen is cheap to replace — no insurance needed. A hospital stay can cost a lot → that big risk is what health insurance should cover.
Quick quiz
1. The principle of insurance?
→ Many pool money to cover those who face a loss
2. Prioritize insurance for risks that are?
→ Large, sudden, costly
3. Often the first-priority insurance?
→ Health insurance
4. Before buying insurance, you should?
→ Read terms, exclusions, limits
5. Paying small premiums regularly so that?
→ A big event does not ruin you
🎯 Real-life mission
Rank three risks by severity and choose the one most worth insuring.