Glossary

Micro-insurance

Small, fixed, low-cost cover designed for low-income households, with simplified underwriting.

Micro-insurance provides a small fixed amount of cover on simple terms, usually with a single premium and a short fixed term. There is no detailed medical questionnaire.

Instead of health questions there is a good-health declaration, which the applicant must be able to sign truthfully. Someone recently hospitalised for several consecutive days, or off work for an extended period through illness, cannot sign it — and belongs on a medically underwritten product instead.

Related terms

  • Good health declaration A signed statement of health that replaces a questionnaire on simplified products.
  • Underwriting The insurer's assessment of the risk you present, which decides the terms and the price.

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