Why Buying Insurance is nothing like buying a new car or another pair of shoes?

income-protection-insurance-sep-16As you all know the human mind is complex and as a result the reasons we do things in a certain way can vary. Here are a few facts about buying decisions:

  • Buying decisions are based on buying behaviour. Consumer behaviour and business behaviour can differ because their buying processes are different.
  • Consumers will often buy on emotion or impulse whereas businesses will buy based on need.
  • Sometimes the type of product will make a difference in the buying decision. For consumers, large ticket items, such as an appliance, a car, or a home, aren’t impulse items. *

Got that? Now close your eyes and cast your mind to a day where you went out to buy a new car. Whilst, as it’s a fairly big expense, I am sure that you did your research beforehand and visited a number or dealerships, took a few for a test drive, asked friends and family…However I bet you also felt exited and aloud for some impulse decisions such as leather seats or metallic paint.

Now, the last time you bought a pair of shoes must have been a completely different affair, depending on the cost of the shoes and your budget, the lower the purchase cost the more impulse our purchasing behaviour can be.

So how come then that most consumers frown in the face of buying insurance and protecting their family for a cost that is often less than a pair of new shoes per month?

Well, buying insurance protection of all types fall under what is sometimes called a ‘forced purchase’ as oppose to a choice which is associated with cars or shoes. Remember that consumers make impulsive buying decisions more often than ones based on need and who can blame them.

Income protection or unemployment insurance is not the same as car or home insurance. For starters you don’t have to purchase it which makes it even harder to go ahead with. However, I wanted to draw your attention back to the fact that your income is essential to your family and without it many will struggle to pay your way. When taking out a mortgage you are making a hefty financial commitment which is likely to amount to your biggest monthly expense. I would suggest that it may therefore be sensible to consider an income protection or unemployment policy that will offer you the extra protection you need. So, why not put your business head on and look into it further?

Here are a few things you can do:

 

*Source: Boundless. “Types of Buying Decisions.” Boundless Marketing. Boundless, 26 May. 2016. Retrieved 06 Sep. 2016 from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/integrated-marketing-communications-12/selecting-the-promotion-mix-for-a-particular-product-84/types-of-buying-decisions-423-4891/

 

Payment protection insurance is optional. There are other providers of Payment protection Insurance and other poducts designed to protect you against the loss of income

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