Matiyos never worried about life insurance when he was young and single. However, when Matiyos and Jermesha got married, he started thinking about life insurance, but didn't purchase any. When they had their first child and bought a house, Matiyos thought it was time to buy life insurance so Jermesha could afford their house if something did happen to him. Matiyos' situation is typical when it comes to life insurance sales. Recognizing this, life insurance companies should use _______ as a segmentation variable.
A) family life cycle
B) geographic variables
C) psychographic characteristics
D) behavioral factors

Question

Quizplus · Accepted Answer

Matiyos' changing interest in life insurance is closely tied to his progression through different stages of the family life cycle (single, married, having a child, buying a house). This suggests that life insurance companies could effectively segment their market based on where potential customers are in their family life cycle.

Matiyos Never Worried About Life Insurance When He Was Young