Which factor can encourage individuals to take out financial protection policies?

The correct answer highlights that an increase in income, combined with higher housing market activity, can significantly motivate individuals to secure financial protection policies. When individuals have higher income, they typically feel more financially stable and are often more willing to invest in products that provide security for their assets, health, or family.

Additionally, increased housing market activity generally indicates that property values are rising, which can lead to greater concern about protecting these assets. People may feel compelled to insure their homes, or consider other forms of financial protection as they navigate a more active real estate environment. As individuals buy new homes or invest in property, the perceived need for insurance products to safeguard their investments becomes more pronounced.

In summary, the combination of improved income levels and dynamic housing market activity creates a context where individuals are likely to be more receptive to taking out financial protection policies, enhancing their sense of security against potential future risks.