Types of Insurnace
What is the purpose of health insurance?
To help cover medical costs like doctor visits, hospital stays, and prescriptions.
What is joint ownership of a household item?
Joint ownership is when two or more people share the cost and responsibility of owning a household item.
Name one advantage and one disadvantage of using cash to buy a household item.
Advantage: No interest or fees.
Disadvantage: Harder to track spending and no buyer protection.
What is a deductible in an insurance policy?
The amount you pay yourself before the insurer pays the rest.
What is the main law that protects consumers when buying goods and services in Australia?
The Australian Consumer Law (ACL).
What does home and contents insurance cover?
Damage or loss to the home structure and belongings due to risks like fire, theft, or storms.
200Name two common problems with joint ownership.
Disagreements over usage and payments; issues with responsibility for damage or repairs.
What is one risk of using Buy Now, Pay Later services like Afterpay?
You may miss payments and incur late fees or hurt your credit score.
List two factors that affect the cost of car insurance.
Age of driver, type of car, value of car, driving history.
True or False: If you buy a second-hand fridge from an Australian store and it breaks after one month, you are still protected under consumer law.
True — consumer guarantees still apply when buying second-hand from a business.
What is a premium, and when do you pay it?What is a premium, and when do you pay it?
A premium is the regular payment made to maintain an insurance policy (monthly or annually).
List three major household purchases you'd need when moving out.
Fridge, washing machine, microwave.
Compare the advantages of using a credit card vs second-hand purchase.
Credit card: Easy, may offer protection and rewards.
Second-hand: Cheaper, but less likely to have a warranty.
Why might an 18-year-old driver pay more for insurance than a 50-year-old?
Younger drivers are considered higher risk and more likely to crash.
What are your consumer rights if a new product is faulty and cannot be fixed?
You have the right to a replacement or refund under the ACL.
Why might a young person need car insurance even if they’re a safe driver?
Because accidents can still happen, and it protects against costs of damage, injury, or liability.
How can you make sure you get best value for money when buying household goods?
By comparing prices, checking reviews, considering warranties, and deciding between new and second-hand items.
Explain how credit card interest works if you don’t pay your balance off in full.
You’re charged interest (usually high) on the remaining balance, increasing your total cost.
Calculate: A home insurance policy has a deductible of $1,000. A fire causes $5,000 in damage. How much does the company pay?
$4,000 ($5,000 - $1,000).
Name two examples of purchases not covered by the Australian Consumer Law.
Items bought from a private seller (e.g. eBay, Facebook Marketplace), or items bought from overseas retailers.
Match the insurance to its description:
(a) Travel insurance. (a) Covers travel risks like trip cancellation or medical emergencies.
(b) Life insurance (b) Covers vet costs.
(c) Pet insurance (c) Protects against vehicle damage or accidents.
(d) Car insurance (d) Covers medical care
.
(e) Health insurance (e) Pays money to family after death.
(a) Travel insurance (a) Covers travel risks like trip cancellation or medical emergencies.
(b) Life insurance (b) Pays money to family after death.
(c) Pet insurance (c) Covers vet costs.
(d) Car insurance (d) Protects against vehicle damage or accidents.
(e) Health insurance (e) Covers medical care.
What steps would you take to decide between buying a second-hand item vs a brand new item?
Compare price, condition, warranty, seller reputation, and long-term value before making a decision.
Which payment method would be most responsible for a big purchase like a fridge, and why?
Cash or credit card (paid in full): avoids debt and interest while offering consumer protections.
Compare these health policies: Policy A ($200/mo, $2,000 deductible) vs Policy B ($350/mo, $500 deductible). Which is better for a healthy 25-year-old and why?
Policy A — lower monthly cost, young healthy people may not visit the doctor often, so the higher deductible is okay.
You and a friend buy a TV together from a private seller online. It stops working after 2 weeks. What actions or steps can you take, and what are your consumer rights in this case?
Limited rights — ACL doesn’t apply to private sales. You can try contacting the seller, negotiate directly, or report to the platform (e.g. eBay). No guaranteed refund or repair under law.