Class: Senior Secondary School 2 (SS2 / SSS2)
Term: Third Term
Week: 4
Age: 16 years
Duration: 45 minutes
Subject: Insurance
Curriculum Theme: Risk Management and Financial Planning
Previous Lesson: Endowment Assurance: Meaning, Types and Benefits.
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.
Identify the various forms of term assurance.
State two differences between any two forms of term assurance.

Affective Domain:

Appreciate the importance of term assurance in financial planning.
Value the role of term assurance in providing financial security.

Psychomotor Domain:

Differentiate between individual and group term assurance.
Explain the scenarios where increasing and decreasing term assurance are suitable.

Discuss the benefits of term assurance for families and groups.

Reference Materials

The following resources were used in planning this lesson:

Senior Secondary Schools Education Curriculum
State Unified Scheme of Work
Any relevant Insurance textbook for Senior Secondary Schools.

Instructional Materials

The teacher will teach this lesson with the aid of:

A chart showing different types of insurance products.
Internet access for research (if available).
Specimen insurance policy document.

Rationale for the Lesson

This lesson helps pupils understand term assurance, which is an important aspect of life insurance. Knowing about term assurance enables pupils to make informed decisions about financial protection for themselves and their families in the future.

Prerequisite/Previous Knowledge

Pupils have basic knowledge of insurance concepts and different types of insurance.

Lesson Content/Board Summary

Term Assurance

Meaning of Term Assurance

Term assurance is a type of life insurance policy that provides coverage for a specified period of time, known as the “term.” If the insured person dies within this term, the policy pays out a death benefit to the beneficiaries. If the insured survives the term, the policy expires without any payout.

Forms of Term Assurance

The following are the forms of term assurance:

Individual Term Assurance: This policy covers a single individual for a specified period. It is typically purchased by individuals seeking to protect their families financially during their working years.
Group Term Assurance: This policy covers a group of people, often employees of a company, under a single contract. It usually provides coverage at a lower cost per person compared to individual policies and is a common employee benefit.
Increasing Term Assurance: In this type, the sum assured (the payout amount) increases over the policy term. This is often chosen to counteract the effects of inflation or to cover increasing financial responsibilities over time.
Decreasing Term Assurance: Here, the sum assured decreases over the policy term. It is commonly used to cover a debt that reduces over time, such as a mortgage, ensuring that the outstanding balance is covered.
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 term will typically be higher due to the insured’s increased age.

Differences Between Forms of Term Assurance

Differences between the forms of term assurance include:

Coverage: Individual term assurance covers one person, while group term assurance covers multiple people under one policy.
Sum Assured: In increasing term assurance, the payout amount grows over time, whereas in decreasing term assurance, the payout amount reduces over time.
Medical Underwriting: Individual term assurance typically requires a medical examination, while group term assurance often does not, especially for smaller coverage amounts.
Cost: Group term assurance is generally more affordable per person due to bulk purchasing and shared risk.
Flexibility: Renewable term assurance offers the flexibility to extend coverage without new medical checks, unlike standard term assurance which simply expires.

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 learned about general insurance and life insurance in previous lessons. The teacher then introduces the topic “Term Assurance” as a specific type of life insurance.
Pupils’ Activity: Pupils respond to the questions and listen attentively to the introduction of the new topic.
Learning Point: Pupils connect previous knowledge to the new topic and understand the context of term assurance.

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 fixed period and pays out only if death occurs within that term. The teacher uses simple examples.
Pupils’ Activity: Pupils listen and take notes, asking questions for clarification.
Learning Point: Pupils understand and can define term assurance.

Step 3: Individual and Group Term Assurance

Time: 7 minutes
Teaching Skill: Elaboration/Comparison
Teacher’s Activity: The teacher explains individual term assurance and group term assurance, highlighting who is covered in each and their typical applications. The teacher shows a chart or specimen document if available.
Pupils’ Activity: Pupils identify the characteristics of individual and group term assurance.
Learning Point: Pupils can differentiate between individual and group term assurance.

Step 4: Increasing and Decreasing Term Assurance

Time: 7 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains increasing term assurance and decreasing term assurance, providing examples of when each would be most suitable (e.g., inflation protection for increasing, mortgage cover for decreasing).
Pupils’ Activity: Pupils listen, take notes, and ask questions to understand the dynamic nature of these policies.
Learning Point: Pupils understand how the sum assured changes in increasing and decreasing term assurance.

Step 5: Renewable Term Assurance

Time: 7 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains renewable term assurance, focusing on the option to renew without a new medical check and the implication of increased premiums upon renewal.
Pupils’ Activity: Pupils listen and note the unique feature of renewable term assurance.
Learning Point: Pupils understand the concept of renewing a term assurance policy.

Step 6: Differences Between Forms of Term Assurance

Time: 5 minutes
Teaching Skill: Summarization/Comparison
Teacher’s Activity: The teacher summarizes the key differences between the various forms of term assurance, encouraging pupils to contribute their observations.
Pupils’ Activity: Pupils participate in the discussion, comparing and contrasting the different forms.
Learning Point: Pupils solidify their understanding of the distinctions between the forms 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?
Mention three forms of term assurance.
Explain the difference between increasing term assurance and decreasing term assurance.
Why might someone choose 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 briefly summarizes the key points of the lesson on term assurance and its various forms. The teacher then gives pupils homework to research real-life examples of people using different types of term assurance.
Pupils’ Activity: Pupils listen to the summary and copy down the homework.
Learning Point: Pupils consolidate their understanding of term assurance.

Lesson Keywords

Term Assurance – Life insurance coverage for a specific period.
Individual Term Assurance – Policy covering one person.
Group Term Assurance – Policy covering multiple people under one contract.
Increasing Term Assurance – Policy where the sum assured increases over time.
Decreasing Term Assurance – Policy where the sum assured decreases over time.
Renewable Term Assurance – Policy that can be renewed without new medical underwriting.

Differentiation

For pupils who grasp concepts quickly, the teacher can ask them to research additional features of term assurance policies. For those who need more support, the teacher can provide simplified charts or diagrams to illustrate the differences between policy types, and offer more direct guidance during activities.

Note for teachers using this lesson plan

Ensure pupils understand that term assurance is different from whole life insurance, as it does not accumulate cash value and only pays out if death occurs within the specified term. Encourage pupils to bring real-world examples or scenarios to class to enhance understanding.