This American Economic Review paper shows results indicating that subsidies increase future insurance take-up through their influence on payout experiences. Exploring mechanisms of the payout effect, they find that for households that randomly benefited from financial education, receiving a payout provides a one-time learning experience that improves take-up permanently. In contrast, households with poor insurance knowledge continuously update take-up decisions based on recent experiences with disasters and payouts. The authors conclude that combining subsidy policies with financial education can be effective in promoting long-run insurance adoption.