Microinsurance

AAA

DEFINITION of 'Microinsurance'

Insurance products that offer coverage to low-income households. A microinsurance plan provides protection to individuals who have little savings and is tailored specifically for lower valued assets and compensation for illness, injury or death.

INVESTOPEDIA EXPLAINS 'Microinsurance'

As a division of microfinance, microinsurance looks to aid poor families by offering insurance plans tailored to their needs. Microinsurance is often found in developing countries, where the current insurance markets are inefficient or non-existent. Because the coverage value is lower than a usual insurance plan, the insured people pay considerably smaller premiums.

RELATED TERMS
  1. Premium

    1. The total cost of an option. 2. The difference between the ...
  2. Socially Responsible Investment ...

    An investment that is considered socially responsible because ...
  3. Microcredit

    An extremely small loan given to impoverished people to help ...
  4. Insurance

    A contract (policy) in which an individual or entity receives ...
  5. Microfinance

    A type of banking service that is provided to unemployed or low-income ...
  6. Microsavings

    A branch of microfinance, consisting of a small deposit account ...
Related Articles
  1. Home & Auto

    5 Insurance Policies Everyone Should ...

  2. Entrepreneurship

    Microfinance: What It Is And How To ...

  3. Entrepreneurship

    Social Finance Careers: Creating A Better ...

  4. Personal Finance

    Go Green With Socially Responsible Investing

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center