microinsurance

Microinsurance is insurance designed to provide low-cost, limited coverage to low-income individuals, households, or small businesses who may not have access to traditional insurance products. Microinsurance typically covers specific risks such as illness, death, crop loss, livestock loss, property damage, or natural disasters. Often, simplified policy terms, small premiums, and accessible distribution methods are used. The basic purpose of microinsurance is to reduce financial vulnerability by helping insureds recover from losses that could otherwise create significant hardship.