What kind of risks are covered by microinsurance schemes?
Micro-insurance schemes can cover various risks (health, life, etc.). The most common microinsurance products include the following: • Life micro-insurance (and retirement savings plans) provides coverage against the financial consequences of old age or of the death of a breadwinner. • Health micro-insurance provides coverage against the financial consequences of ill health and maternity. The financial consequences can take several forms: direct medical costs due to prevention, care and cure (fees for consultations, laboratory tests, medicines, hospitalisation, delivery, etc.); direct non-medical costs such as transportation costs and food in case of hospitalization; and indirect costs (opportunity costs), seeing as ill health and maternity usually entail a loss of productive time for both patients and caretakers. Health micro-insurance schemes usually cover direct medical costs covering a predetermined list of risks (or health services). Very few schemes provide cash benefits (income
