Class: Senior Secondary School 2 (SS2 / SSS 2)
Term: Third Term
Week: 4
Age: 16 years
Duration: 45 minutes
Subject: Insurance
Curriculum Theme: Not specified
Previous Lesson: Professional Indemnity: Meaning and Professionals Who Need It.
Topic: Insurance products: Term assurance
Subject Matter: Meaning of term assurance (life assurance for a specified period), forms of term assurance (individual and group, increasing term assurance, decreasing term assurance, renewable term assurance), differences between the forms of term assurance.

Specific Objectives

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

Cognitive Domain:

Define term assurance.
List at least three forms of term assurance.
Differentiate between various forms of term assurance.

Affective Domain:

Appreciate the importance of term assurance in financial planning.
Value the different uses of term assurance for individuals and groups.

Psychomotor Domain:

Illustrate the application of different term assurance forms with examples.
Identify appropriate forms of term assurance for specific needs.

Discuss how group term assurance can benefit different social groups or communities.

Reference Materials

The following resources were used in planning this lesson:

Senior Secondary Schools Education Curriculum
State Unified Scheme of Work for Insurance
Akinwunmi, S. & Adeyemi, A. (2018). Comprehensive Insurance for Senior Secondary Schools.

Instructional Materials

The teacher will teach this lesson with the aid of:

Chart showing different types of term assurance.
Internet for additional resources and real-life examples.
Specimen document of a term assurance policy.

Rationale for the Lesson

This lesson helps pupils understand a fundamental type of life insurance that provides financial protection for a specific period. Understanding term assurance enables pupils to grasp how individuals and groups can secure temporary financial coverage, which is important for personal and business planning.

Prerequisite/Previous Knowledge

Pupils have a basic understanding of insurance concepts and the general idea of life assurance from previous lessons.

Lesson Content/Board Summary

Term Assurance

Meaning of Term Assurance

Term assurance is a type of life assurance policy that provides coverage for a specified period, or “term,” such as 5, 10, 20 years, or up to a certain age. If the insured person dies within this specified term, a death benefit is paid to the beneficiaries. If the insured survives the term, no benefit is paid, and the policy expires without any cash value.

Forms of Term Assurance

The following are common forms of term assurance:

Individual Term Assurance: This policy covers a single person for a specific period. It is designed to meet the personal insurance needs of an individual.
Group Term Assurance: This policy covers a group of people, often employees of a company or members of an association, under a single contract. Premiums are usually lower per person, and often no medical examination is required.
Increasing Term Assurance: The sum assured (death benefit) under this policy increases over the term of the policy, usually to keep pace with inflation or increased financial responsibilities.
Decreasing Term Assurance: The sum assured under this policy decreases over the term. This type of policy is often used to cover a debt that reduces over time, such as a mortgage loan.
Renewable Term Assurance: This policy gives the policyholder the option to renew the coverage at the end of the term without needing to undergo a new medical examination. The premium for the renewed policy will typically be higher due to the increased age of the insured.

Differences Between Forms of Term Assurance

The forms of term assurance differ based on several key characteristics:

Coverage: Individual term assurance covers one person, while group term assurance covers multiple people under one policy.
Sum Assured: In increasing term assurance, the sum assured grows over time. In decreasing term assurance, it reduces over time. For standard individual/group, it typically remains level.
Purpose: Decreasing term assurance is commonly used for debt protection (e.g., mortgages), while increasing term assurance adjusts for inflation or growing needs. Individual and group policies offer general life coverage.
Underwriting: Individual policies usually require medical underwriting, whereas group policies often have simplified or no medical underwriting, especially for smaller sums assured.
Renewability: Renewable term assurance offers the option to continue coverage without re-qualifying, unlike standard term policies which may require a new application and medical review.
Premiums: Premiums for renewable term assurance typically increase upon renewal due to age. Premiums for increasing term assurance may also increase. Decreasing term assurance often has level premiums as the risk reduces.

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 asks them to recall what they know about life assurance in general.
Pupils’ Activity: Pupils respond by mentioning basic concepts of life assurance and its purpose.
Learning Point: Pupils connect the new topic to their previous knowledge of insurance.

Step 2: Meaning of Term Assurance

Time: 7 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher explains the meaning of term assurance, emphasizing that it provides coverage for a specific period and has no cash value.
Pupils’ Activity: Pupils listen attentively and define term assurance in their own words.
Learning Point: Pupils understand the core concept of term assurance.

Step 3: Forms of Term Assurance – Individual & Group

Time: 7 minutes
Teaching Skill: Elaboration/Classification
Teacher’s Activity: The teacher explains individual term assurance and group term assurance, providing examples of each.
Pupils’ Activity: Pupils identify the key features of individual and group term assurance.
Learning Point: Pupils can distinguish between individual and group term assurance.

Step 4: Forms of Term Assurance – Increasing & Decreasing

Time: 7 minutes
Teaching Skill: Explanation/Comparison
Teacher’s Activity: The teacher explains increasing term assurance and decreasing term assurance, highlighting their uses with practical scenarios (e.g., inflation, mortgage).
Pupils’ Activity: Pupils describe how the sum assured changes in these forms and suggest situations where they might be useful.
Learning Point: Pupils understand the dynamics of sum assured in increasing and decreasing term assurance.

Step 5: Forms of Term Assurance – Renewable

Time: 7 minutes
Teaching Skill: Explanation/Description
Teacher’s Activity: The teacher explains renewable term assurance, focusing on the option to renew without a new medical examination and the implication for premiums.
Pupils’ Activity: Pupils state the main feature and benefit of renewable term assurance.
Learning Point: Pupils grasp the concept of renewability in term assurance.

Step 6: Differences Between Forms

Time: 5 minutes
Teaching Skill: Analysis/Differentiation
Teacher’s Activity: The teacher guides pupils to identify and discuss the key differences between the various forms of term assurance covered.
Pupils’ Activity: Pupils actively participate in differentiating the forms based on coverage, sum assured, and purpose.
Learning Point: Pupils can articulate the distinctions between the different types of term assurance.

Step 7: Evaluation/Review

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

What is term assurance?
State two forms of term assurance and explain one of them.
How does decreasing term assurance differ from increasing term assurance?
Mention one advantage of renewable term assurance.

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

Step 8: Conclusion

Time: 2 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the key points of the lesson and gives pupils homework to research real-life examples of each type of term assurance.
Pupils’ Activity: Pupils copy the homework and ask any final questions.
Learning Point: Pupils consolidate their learning and prepare for further exploration.

Lesson Keywords

Term Assurance – Life insurance that covers a specific period and pays a benefit only if death occurs within that term.
Individual Term Assurance – A term assurance policy covering a single person.
Group Term Assurance – A single term assurance policy covering multiple individuals, typically members of an organization.
Increasing Term Assurance – A term assurance policy where the sum assured increases over the policy term.
Decreasing Term Assurance – A term assurance policy where the sum assured decreases over the policy term.
Renewable Term Assurance – A term assurance policy that can be renewed at the end of its term without new medical underwriting.

Differentiation

For pupils who are struggling, the teacher will provide simplified examples and extra visual aids. Advanced learners will be encouraged to research specific policy details from different insurance companies and discuss their findings.

Note for teachers using this lesson plan

Encourage pupils to share any personal or family experiences with insurance (if comfortable) to make the lesson more relatable. Use the specimen document to show actual policy features. Emphasize the practical applications of each term assurance type in real-world financial situations.