1809 BR What does the word risk mean

1/8/09 BR: What does the word “risk” mean to you? Today: Identifying Risk in Your Life and Understanding Insurance

Risk – The exposure to chance of loss Form two groups and as a group (one paper) answer the following (5 Min): 1. What are 10 risks that you face in a particular day? 2. Can individuals avoid all risks in life?

5 Ways to Handle Risk 1. Avoid Risk - You risk money by playing the 2. 3. 4. 5. lottery. You can avoid this risk by not playing. Retain Risk - Live with and accept the risk (and its consequences. ) You smoke, you might die of lung cancer. Reduce Risk - If you eat food that isn’t really healthy but reduce your risk of bad health by exercising regularly. Transfer Risk - You risk embarrassment if you give a presentation in class. You can transfer the risk by asking someone else to do it. Share Risk – If you choose the location of this year’s prom you risk people getting mad at you for making an unpopular choice. You share the risk if you ask other to help make the decision

In your Group: Given each risk example, decide which way to handle risk is most appropriate and describe how you would handle it A. You have a friend who is sensitive about comments made about his ears B. You play on the basketball team and you might miss a basket C. You might not take courses that will prepare you for college D. You might hurt someone in an auto accident that you cause

In your Group: Given each risk example, decide which way to handle risk is most appropriate and describe how you would handle it E. Someone might get into your locker and steal F. G. H. I. J. K. your jacket Your band will fail because nobody wants to pay you to play Your TV might be stolen from your house Your car might be stolen The weather on the day of your graduation party will be cold and rainy You our your partner will become pregnant You may develop diabetes later in life

Insurance - coverage by a contract that guarantees payment if an insured loss occurs Common Types of Insurance: 1. Auto – provides protection to the owners, operators, and occupants in case of an accident or damages 2. Health – protects against $ loss caused by the costs of illness or accident 3. Life – provides $ to a family when the insured dies 4. Homeowner’s – protects the homeowner from loss caused by fire, theft, and storm damage of the structure and the possessions within the structure. A liability-insurance feature protects the homeowner from loss when someone is injured on the homeowner’s property.

Insurance - coverage by a contract that guarantees payment if an insured loss occurs Common Types of Insurance: 5. Renters – Protects the renter from loss of personal possessions because of suck risks as fire, theft or storm damage 6. Disability – provides $ for a specified period when a person is unable to work due to illness or accident “Insurance is like a shield, if you want a bigger shield and more types of protection it will cost you more. ”

Exit Slip – 10 Points § How can insurance help you deal with risks that you face in life?