Securing Children’s future: Microinsurance for Low income, working mothers

“Sarita, a worker in a cotton mill is the sole breadwinner in her family. She has the responsibility of 2 small kids as her husband passed away a few years back, not leaving many funds for the family to survive. Sarita works hard to make her ends meet. Like every other Indian, Sarita was hit by the pandemic too. The cotton mill closed temporarily affecting the family’s earnings. In addition, she was infected with Covid, and the loss of earnings and the medical expenses (though the government did provide all medical facilities free) depleted her meagre savings too. As a result, the family had to depend on financial support from relatives. Her children were forced to drop out the school and work to earn money for their survival.??

Unfortunately, Sarita and many like her, working under unorganized sectors, do not have any safety net for unforeseen events. They are not covered by any insurance plan or government scheme, leaving them and their families exposed to a great financial risk.?

Why working mothers need Microinsurance?

Women comprise more than half of the world’s poor population. They usually earn lesser compared to men, do not own properties, take a lesser part in decision making, and are more vulnerable to exploitation and violence.?

Being a caregiver, a home managers, and an earner all at once, Women have a pressing need to manage risk and plan their finances accordingly. The Mothers, especially the single mothers working in the low-income category need it even more to secure the future of their children.?

Selling/ pledging Jewellery, property, or livestock are some of the traditional methods to manage unforeseen risks. However, in the long term, these solutions may not be effective and lead the family into the debt trap pushing them into an eternal?poverty cycle.?

Other crisis management strategies prevalent in the low-income segment are pulling children out of school or sending them to work as an additional income source which not only hinders a child’s social development but also severely diminishes their long-term growth and earning potential.

How Microinsurance helps secure Children’s future?

Parents are committed to protecting their families against such economic adversities.?

Microinsurance offers innovative solutions for economically vulnerable women to manage risk better and use their assets more productively. The insurance covering the lives, health, and Assets ensures that the future of the children is secured in case of unforeseen events like illness, accident, or worst case death of the breadwinner.

Given the specific needs of low-income working women, insurers often face a challenge in designing profitable products for this segment. However, over the years many schemes have successfully used the innovative models to design need-based products which are sustainable also.?

A few examples include the health insurance product with maternity cover offered by a French NGO in West Africa. The product is sold at the village level, with all inhabitants paying an annual fee to cover all pregnant women in the village. Since participation is mandatory, adverse selection and administrative costs are minimized.?

In India, many companies offer microinsurance?products as an embedded product to the main product that is being offered to this customer segment. The microinsurance product acts symbiotically and is delivered to the customer.?

However, once the first product is sold the customer is not approached for further microinsurance products through the customer's life cycle.

At MicroNsure we help our partners design and distribute Innovative products that are affordable and need-based. Using our MIWISA (MicroInsurance Workflow Information system and application) (applied for patent) technology platform the partner is able to provide microinsurance products in 14 segments which include Protection, Savings, Investment, Pension, assets Insurance and other products which could be required throughout the lifecycle of the customer.**

MIWISA also helps the partner in offering combo products.??One of the products School life offers a lump sum to the school in case of Death or Disability of the earning member. Guaranteeing child’s education from KG to PG.*

Best Mother’s Day gift a woman can give to her family

Insurance is an essential tool to make sure that one’s family is secured even during adverse circumstances. Microinsurance is the best gift a woman can gift to her children to secure their future.??

MicroNsure Wishes a Happy Mother’s Day to all the loving, caring, and dedicated Mothers.?

About MicroNsure

MicroNsure is a technology-driven Microinsurance consulting and distribution company. We are committed to bringing financial inclusion to the economically vulnerable section of our society by offering simple, hassle-free, and affordable microinsurance solutions.?

To know more about our services and products do write to us at [email protected]

Disclaimer:

*terms and conditions apply. Products are offered by the respective Insurance companies.

**Insurance is offered by Svojas Insurance Broking and Risk Management Services Private Limited (CIN U67120TG2017PTC118828).

IRDAI Broking License Code No. DB 718/17, Certificate No. 627, License category- Direct Broker (Life & General), valid till 09/11/2023.

Insurance is the subject matter of the solicitation. Product information is solely based on the information received from the insurers. For more details on risk factors, associated terms and conditions, and exclusions, please read the sales brochure carefully of the respective insurer before concluding a sale.

For more information on Svojas Insurance Brokers visit www.svojasinsurancebrokers.com