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.

BREAKING DOWN '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.

  1. Personal Lines Insurance

    Property and casualty insurance products for individuals that ...
  2. Health Insurance

  3. Assigned Risk

  4. Classified Insurance

    Insurance coverage provided to a policyholder that is considered ...
  5. Coordination Of Coverage

  6. Insurance Coverage Area

    The geographic region in which an insurance policy’s benefits ...
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