Nov 2013

Teaching children about insurance

Teaching children about insurance
Children are quick learners. In a world where economic knowledge is key, they need to know how money works, and how insurance fits in a good financial plan. But how do you engage them? Here’s a few tips:
  • Start with the basics. Help your children understand that insurance works to protect the value of their stuff. Use examples from their belongings. Keep it simple. For information that can help go to ibc.ca.
  • Give them an example. If your children get allowances or birthday money and they’ve bought a toy or other item with the proceeds, use this situation to create an example of the benefit of insurance. Remind them about how long it took them to get the money to buy the item. Ask them how they would replace it if it was damaged in a fire or by water. 
  • Discuss the different types of insurance available. Give them an overview on your policy’s coverage in auto insurance, home insurance and business insurance For helpful tips go to ibc.ca under Resources.
  • Read the policies with them. Try to make it a fun event. Do it over a pizza. This will help your children understand what to expect from insurance coverage, help them develop critical thinking skills, and can open up the lines of communication for questions. 
  • Explain the consequences of being uninsured. Don’t be afraid to discuss with your children the consequences of not having insurance coverage. Use your own home and assets as an example. Let them know just how much it would take to rebuild and refurnish your home after a disaster and explain how insurance can make the seemingly impossible, possible. 
(sources Alexander and Strunk Insurance; IBC)


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