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The Credit Insurance Purchase Decision: Who Buys It and Why

Chapter
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Part of the Innovations in Financial Markets and Institutions book series (IFMI, volume 10)

Abstract

What factors influence a borrower’s decision to purchase credit insurance? As noted in the previous chapter, the sales effort made by the person handling the loan can certainly influence a borrower’s decision to purchase credit insurance. However, a customer’s decision to purchase insurance is also influenced by a variety of demographic and economic factors which determine the value of insurance coverage to each borrower. To isolate the impact of salesmanship on the probability that a customer will purchase insurance, we must first identify the underlying likelihood of purchase if there was no sales pressure.

Keywords

Life Insurance High School Diploma Credit Union Purchase Decision Demand Equation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 15.
    See Donald B. Rubin, Multiple Imputation for Nonresponse in Surveys, John Wiley and Sons, Inc., New York, 1987, and Arthur B. Kennickel, “Imputation of the 1989 Survey of Consumer Finances: Stochastic Relaxation and Multiple Imputation,” Proceedings of the Section on Survey Research Methods, American Statistical Association, 1991. For the SCF survey, we use the average of the five imputations in our calculations.CrossRefGoogle Scholar

Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  1. 1.Department of Economics, Krannert Graduate School of ManagementPurdue UniversityUSA
  2. 2.Credit Research Center, Krannert Graduate School of ManagementPurdue UniversityUSA

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