Question

Which factors play a role in purchasing insurance? Check all that apply.

the consumer’s age and current lifestyle
the price of the premiums for a particular policy
the consumer’s job and financial circumstances
the number of employees at an insurance company
the different deals and policies that companies offer
the decision to avoid any risks associated with insurance

Answer 1

Apply: the consumer’s age and current lifestyle; the price of the premiums for a particular policy; the consumer’s job and financial circumstances; the different deals and policies that companies offer; the decision to avoid any risks (risk aversion).

Do not apply: the number of employees at an insurance company — that generally does not affect an individual’s decision to buy a policy.