Cash Course: Insurance Basics | Kids Shows

Before getting behind the wheel of a car or embarking on life on their own, teens should have a basic understanding of what insurance is and why it’s necessary. This episode of Cash Course teaches youth and young adults what they need to know about health, home, and auto insurance—from premiums and deductibles to claims and coverage—to help them better navigate unexpected expenses from injuries or accidents.

#kidseducationvideo #insurance

[TheInsomniaddict]

Decent basic intro for insurance. One thing to mention is that Insurance doesn't always cover catastrophic events in an area and can take a long time to pay out if many people are affected at once. They do quite often try to impose a limit on claims allowed by region for given time periods and quite often this can lead to delays or policies not fully paying out. Insurance also generally try to pay out based on valuation of the item damaged at the claim time and quite often won't pay enough for replacement value. Keep this in mind for major purchases like houses where you may really want to find insurance that will pay all costs in replacing the item.

Rates vary based on what "risk" group you're part of, eg if you're young and drive a Subaru WRX expect to pay a lot higher premium since they're quite often used in street racing. Like any business, insurance is designed to make money for the company operating it. Quite often the premiums that they charge get invested into the stock market so that they can pay out claims based on the residuals of their investments. When these residuals stop being enough to cover claims is when you may start running into issues, like during recessions.

[funkydiscogod]

Insurance companies get rich by denying claims.

[TheTruthseeker]

All this stuff should be covered in High school and it never was in my school.

[How_to_]

Now tell us the real way insurances make money.

[ARyan-ykqh]

Both my homeowner's and car insurance increased by 40% this year and I never filed a claim on either of them (nor had any claims ever on any type of insurance) - it's a goddamn racket.

[GLASSGHOSTHUNTERS]

Insurance companies are a middle man that drive costs up, not down.

[nb]

Just remember that insurance companies make their money by doing everything they can to NOT pay out when something happens.

[hunterdale]

Great video. May I add… Potentially
1. the most costly risk is liability. Working people should consider an umbrella policy which adds an inexpensive additional layer of liability coverage beyond what is provided by home and auto policies.
2. As a young to middle aged person, disability is much more likely than death. All working people should strongly consider having a strong disability policy which will pay 2/3 or more of their salary should they become disabled. A disability could be permanent, and the policy could pay out premiums for decades.

[yitziyyb]

Now this is the PragerU I fell in love with 7 years ago!!
Explaining basic knowledge

[lisi]

Medical facilities stop calling people patients. They started calling them customers.

[diannalaubenberg]

It is always good to maintain an "emergency" savings account for payment of deductbles and replacement costs of household appliances, as well as car repairs.

[coolbeans]

Great video idea for kids. You should do one on taxes and investing.

[pinkelefantever]

The world was so much better when your insurance covered everything. Except cosmetic surgery, LOL

[Stevarooni]

Insurance is a bet against good luck. It's good sense.

[kazmiller]

Congrats Prager U, you have successfully argued for socialized medicine. I can't wait to break my leg, be out of work, and pay for the first few thousand dollars of my hospital bill before my insurance kicks in ( or doesn't).

[ryanweaver]

There's no getting around that insurance and streams and pools of risk/investments are a part of regional work. I can not stress enough how important community engagement and connections with authentic community uplift really is... it is true for safe and effective growth, retirements... multi-sector work... the needs of positive human feedback loops through health, climate and tools matters so very much. It's workable, but we have to have safe, effective work with drastically minimizing grift and graft...

#LoveEVICTShate

[jimUkay]

Your premium is your monthly payments. You deductible is your out-of-pocket payment before your insurance will pay your bills. Have I got this right?

[DavidRhyne]

I'm no kid but it's great that you guys share these things. Hoping more teens/tweens can take a look at this stuff in the future.

[TheSlightlySlanted]

Basically you pay insurance, they don't pay you.

[elizabethjordan]

How are the disabled or elderly supposed to manage their 'risk'? What about the people who literally can't change their situation? Insurance is for-profit and puts prices on people accordingly. Insurance companies put a price on your life and it just feels wrong.