Class: Senior Secondary School 2 (SS2 / SSS2)
Term: 3rd Term
Week: 6
Age: 16 years
Duration: 45 minutes
Subject: Insurance
Curriculum Theme: Not specified
Previous Lesson: Term Assurance: Meaning,.
Topic: Endowment assurance (cont.)
Subject Matter: House purchase endowment assurance, educational endowment assurance, risks covered in endowment assurance

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define house purchase endowment assurance.
Define educational endowment assurance.
State the risks covered in endowment assurance.

Affective Domain:

Appreciate the importance of house purchase endowment assurance for future planning.
Appreciate the importance of educational endowment assurance for children’s schooling.

Psychomotor Domain:

Identify types of endowment assurance.
List risks covered by endowment assurance policies.

Discuss how endowment assurance policies contribute to financial security.

Reference Materials

The following resources were used in planning this lesson:

Senior Secondary Schools Education Curriculum
State Unified Scheme of Work
Oyedepo, F. O. (2018). Comprehensive Insurance for Senior Secondary Schools. Ibadan: University Press PLC.
https://www.investopedia.com/terms/e/endowment-policy.asp

Instructional Materials

The teacher will teach this lesson with the aid of:

Specimen endowment assurance policy document
Chart showing types of endowment assurance

Rationale for the Lesson

This lesson helps pupils understand specific types of endowment assurance policies that are important for planning major life events like buying a house or funding education. It enables them to recognize the financial protection these policies offer against various risks.

Prerequisite/Previous Knowledge

Pupils should have prior knowledge of the basic concept and features of endowment assurance policies.

Lesson Content/Board Summary

Endowment Assurance (Continued)

House Purchase Endowment Assurance

This is a type of endowment assurance policy designed to help policyholders save towards purchasing a house. The sum assured is paid to the policyholder at the end of a specified term, which is typically aligned with their house purchase plans, or to beneficiaries upon the policyholder’s death within the term.

The following are the importance of House Purchase Endowment Assurance:

Provides a structured savings plan for house acquisition.
Offers life cover, ensuring funds for the house even if the policyholder dies prematurely.
Can be used as collateral for a mortgage loan.
Encourages financial discipline over a long period.

Educational Endowment Assurance

This is an endowment assurance policy specifically designed to provide funds for a child’s education. The policy matures when the child reaches a certain age (e.g., 18 or 21), and the sum assured is paid out to cover tuition fees and other educational expenses. It also provides a death benefit if the parent/guardian policyholder dies before the policy matures.

The following are the importance of Educational Endowment Assurance:

Guarantees funds for a child’s education regardless of the parent’s survival.
Helps parents plan and save for future educational costs systematically.
Protects against financial hardship if the primary income earner dies or becomes disabled.
Offers peace of mind regarding a child’s academic future.

Risks Covered in Endowment Assurance

Endowment assurance policies primarily cover two main risks:

Survival Risk: The risk of the policyholder surviving the policy term, in which case the sum assured plus accumulated bonuses (if any) is paid out.
Death Risk: The risk of the policyholder dying before the policy matures, in which case the sum assured is paid to the designated beneficiaries.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils and reviews the previous lesson on the general concept of endowment assurance, asking pupils to recall key features.
Pupils’ Activity: Pupils respond to the teacher’s questions and recall previous knowledge.
Learning Point: Pupils connect the new lesson to their prior understanding of endowment assurance.

Step 2: House Purchase Endowment Assurance

Time: 10 minutes
Teaching Skill: Explanation/Demonstration
Teacher’s Activity: The teacher explains what house purchase endowment assurance is, using the specimen document to illustrate. The teacher then discusses its importance.
Pupils’ Activity: Pupils listen attentively, ask questions, and identify at least two importance of this policy type.
Learning Point: Pupils understand the definition and importance of house purchase endowment assurance.

Step 3: Educational Endowment Assurance

Time: 10 minutes
Teaching Skill: Explanation/Discussion
Teacher’s Activity: The teacher explains educational endowment assurance, highlighting its purpose and benefits for funding children’s education. The teacher encourages pupils to discuss its relevance.
Pupils’ Activity: Pupils listen, take notes, and identify at least two importance of educational endowment assurance.
Learning Point: Pupils grasp the concept and importance of educational endowment assurance.

Step 4: Risks Covered in Endowment Assurance

Time: 10 minutes
Teaching Skill: Elucidation
Teacher’s Activity: The teacher clearly explains the two main risks covered by endowment assurance policies: survival risk and death risk, providing simple examples.
Pupils’ Activity: Pupils listen, ask clarifying questions, and write down the risks covered.
Learning Point: Pupils identify and understand the primary risks covered by endowment assurance.

Step 5: Evaluation/Review

Time: 5 minutes
Teaching Skill: Questioning/Assessment
Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define House Purchase Endowment Assurance.
State two importance of Educational Endowment Assurance.
Mention the two main risks covered by an endowment assurance policy.

Pupils’ Activity: Pupils answer orally and in writing.
Learning Point: Pupils demonstrate understanding of the lesson.

Step 6: Conclusion

Time: 5 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the key points of the lesson, emphasizing the role of endowment assurance in financial planning for specific life goals. The teacher gives pupils an assignment to research other types of endowment policies.
Pupils’ Activity: Pupils listen, ask final questions, and note down the assignment.
Learning Point: Pupils consolidate their learning and prepare for further study.

Lesson Keywords

Endowment assurance – A life insurance policy designed to pay a lump sum after a specific term or on death.
House purchase – The act of buying a residential property.
Educational – Relating to education or schooling.
Risks covered – The specific perils or events against which an insurance policy provides protection.
Policy – A contract of insurance.

Differentiation

For pupils who grasp concepts quickly, the teacher will encourage them to research specific examples of local insurance companies offering these policies. For pupils needing more support, the teacher will provide simplified notes and additional one-on-one explanations, using more visual aids and real-life scenarios.

Note for teachers using this lesson plan

Teachers should ensure they have current specimen documents or clear charts to illustrate the different types of endowment assurance. Encourage pupils to share any personal experiences or family knowledge related to insurance policies to make the lesson more relatable. Emphasize the long-term benefits of these policies for financial security and planning.