Does price matter?
You probably already know that it's easier to sell a $30 a month case than a $3,000 a month case - and the evidence of 10 companies sales statistics can't be wrong: they get many more of the former than the latter.
So affordability must count at some level - that is ‘price elasticity of demand', remember? The next question is, how elastic is it? This economic boingyness is important.
If you think consumers will turn their noses up at insurance because the price is too high, you may do everything to keep it low.
You will worry about whether consumers have a linear tolerance - and will simply buy slightly lower levels of cover to offset higher prices. You may worry about a capricious tolerance - where consumers are fine up to a point and then sales dry up - usually because consumers have a substitute at a certain price point.
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