Micro Insurance

byPaytm Editorial TeamLast Updated: November 14, 2025

Meaning

Micro Insurance provides small-scale insurance coverage for low-income individuals or families. It offers protection against life, health, property, or accident risks at an affordable premium.

Example

A farmer or daily wage worker can get life insurance or crop insurance at a very low cost under micro insurance schemes.

It helps poor and rural populations manage financial risks and improve stability.

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