Insurance pool dice game: an 8th grade lesson on managing risk

1. Define premium (what you pay for insurance) and risk (the chance that something bad and costly happens).
2. In each group of 6, half the players buy insurance: they pay 2 tokens into the pool each round. The others pay nothing.
3. Each round, every player rolls the die. A 1 means an accident that costs 12 tokens. Insured players are paid from the pool; uninsured players pay it themselves.
4. Play 6 rounds and record balances. If the pool runs low, the group discusses what a real insurer would do (raise premiums).
5. Compare: who ended with the most tokens? The fewest? Did any uninsured player lose a lot at once?
6. Discuss: insurers must charge enough to pay claims and run the company, so why do people buy insurance? (To avoid a loss they could not handle.)
7. Connect to real words: premium, and deductible (the part you pay before insurance pays).

Differentiation: students who need support use a calculator for balances. Students who are ready add a 4-token deductible and replay. English learners can use the words premium, risk and pool.

Quick check: ask: why might a family pay for insurance every year even if they never have an accident?

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