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      Lesson details

      Learning outcome

      I can assess different types of insurance.

      Key learning points

      1. I know that certain types of insurance are a legal requirement and that others are voluntary.
      2. I can assess different types of legally required insurance.
      3. Insurance can play a role in maintaining financial security.

      Keywords

      • Insurance - Insurance is a means of protection from financial loss.

      Common misconception

      Insurance is optional.

      In most cases insurance is indeed optional. However, some types of insurance are legally required.

      Teacher tip

      Pupils may wish to investigate other types of insurance and debate whether certain insurance types should be legally required that are not. They could consider the cost to the individual and consider whether insurance would be affordable.

      Content guidance

      Depiction or discussion of sensitive content

      Supervision

      Adult supervision recommended

      Licence

      This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0
      except where otherwise stated. See Oak's terms & conditions
      (Collection 2).

      Lesson video

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      Prior knowledge starter quiz

      6 Questions

      Q1.
      A shop owner buys items and then sells them for a 12.5% profit. If the shop owner buys a vintage guitar for £4560, what does he sell it for?

      Correct Answer: £5130

      Q2.
      A shop owner buys items and then sells them for a 12.5% profit. If the shop owner buys a vintage guitar for £4560, what is his profit?

      Correct Answer: £570

      Q3.
      A company's stock price increased by 7.8% in one day. If the original price was £52.50 per share, what is the new price per share?

      Correct Answer: £56.60

      Q4.
      A video game originally priced at £45.99 is on sale for 17.5% off. What is the sale price of the game?

      Correct Answer: £37.94

      Q5.
      Sam puts £230.50 into a variable high interest savings account. By the end of the month, this had increased by around 12.3%. How much does Sam now have?

      Correct Answer: £258.85

      Q6.
      A car was bought for £10 499. Over the year, its value depreciated by 4.6%. How much is the car now worth? Give your answer to the nearest pound.

      Correct Answer: £10 016

      6 Questions

      Q1.
      is a means of protection from financial loss.

      Correct Answer: Insurance

      Q2.
      Which of the following does third party insurance cover?

      Correct answer: Damage to someone else's vehicle
      Damage to your own vehicle
      Correct answer: Injury you cause to others
      Correct answer: Injury caused to your passengers
      Theft

      Q3.
      Which of the following does employer's liability insurance cover?

      Correct answer: Compensation to an employee injured due to work
      Correct answer: Compensation to an employee who is ill due to work
      Redundancy pay to an employee
      Damage to an employee's property while at work
      Damage to company property caused by an employee

      Q4.
      Select the insurance types that help to protect you from financial loss if your vehicle is stolen.

      Correct answer: Comprehensive
      Correct answer: Third party, fire and theft
      Third party

      Q5.
      If comprehensive cover offers the best coverage, what is the most likely reason that other types of insurance exist?

      Not everyone wants to be fully covered.
      Damaging another vehicle and not your own is more likely.
      Comprehensive cover is too good.
      Correct answer: Comprehensive insurance may be too expensive.
      Some insurers refuse to give comprehensive coverage.

      Q6.
      Which types of insurance are legally required in the UK?

      Buildings insurance
      Correct answer: Employer’s liability insurance
      Motor insurance - comprehensive
      Correct answer: Motor insurance - third party
      Motor insurance - third party, fire and theft

      To help you plan your 10 financial education lesson on: Insuring against risk, download all teaching resources for free and adapt to suit your pupils' needs...