As always in insurance, a microinsurance product is defined by four basic elements:
The insured event: the trigger event (the policyholder's death, for example), which leads to a compensation by the insurer.
The amount of the compensation: this is the compensation the insurer will pay to the policyholder when the covered event happens (e.g. a fixed sum, or the balance of a loan).
The beneficiary: the person the compensation is paid to if the covered event happens.
The duration of coverage: the period during which the covered event must happen for the compensation to be paid.
